According to this source Russia has been buying older ships to transport oil, an…

According to this source Russia has been buying older ships to transport oil, and banks and insurers are dubious about backing them.

Analysis by Kennedy claims that the Russian shadow fleet capacity remains below 50% of what Russia needs for a standalone fleet.

“Fleet expansion has been costly,” Kennedy wrote in a new report issued today. “An estimated $8.5 billion—largely financed by the Russian state it appears—has been spent acquiring aging vessels at record prices, most with only 2 to 3 years of expected service life remaining.”

Further signs are emerging of how sanctions combined with Ukrainian drones are causing serious problems for the Russian oil exporting machine with advice issued on how Washington could reduce the size of the so-called shadow fleet further.

Research carried out by Craig Kennedy, who runs the Navigating Russia substack, suggests the shadow fleet is in crisis.

Several banks in China, the UAE and Turkey have hiked their sanctions compliance requirements in recent weeks, resulting in delays of up to months or even the rejection of money transfers to Moscow.

Grey tankers, as broker BRS describes the shadow ships, will have great difficulties returning to normal trading. Not only because they are among the oldest in the global tanker fleet, but also because their maintenance has often been questionable.

“Furthermore,” BRS stated in a recent report, “they will remain flagged by the insurance, banking, and services communities as ‘delicate’ units to work with (whether sanctions are lifted or not).”

Additionally: NATO reported last week that some 15% of Russian refining capacity had been taken offline by repeated Ukrainian drone strikes.

https://splash247.com/sanctions-and-drones-take-their-toll-on-russian-oil-exporting-machine/