Often unmarked and hidden from commercial tracking systems, a growing fleet of “ghost ships” is quietly delivering sanctioned Russian oil to Chinese ports — deepening the strain between Washington and Beijing as trade negotiations unfold.
The nondescript oil tankers that makeup the “ghost ship” fleet are tasked with transporting Russian oil in defiance of G7 price caps and EU sanctions triggered by Moscow’s unprovoked war in Ukraine.
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“Russia is able to avoid some of the worst parts of sanctions against its energy exports with its shadow fleet,” Benjamin Jensen, director of the Futures Lab at the Washington, D.C.-based Center for Strategic and International Studies think tank, told FOX Business.
“Energy is the lifeblood of the Kremlin’s economy, and that means it’s that hard cash that they’re earning through energy exports that they’re able to then quickly turn into payments to new contracted soldiers and to produce more weapons,” Jensen said.
He added that China’s continued purchases of sanctioned oil is “actively supporting Russia in its war.”
Despite U.S. sanctions, China is the leading importer of Iranian oil and the second-largest buyer of Russian crude, much of which is funneled through the growing fleet of untracked “ghost ships.”
The issue is drawing renewed attention as Treasury Secretary Scott Bessent completes two days of trade talks with Chinese officials in Sweden. Bessent has identified China’s support for sanctioned oil as a central point of contention in the ongoing trade talks.
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Jensen, who is also a senior fellow at the Center for Strategic and International Studies, said Russia’s “ghost fleet” employs several evasion tactics to circumvent U.S. sanctions.
Jensen said the vessels often operate under foreign flags to obscure their origins, disable transponders to avoid detection, and conduct mid-sea transfers to conceal cargo.
“Imagine one ship leaving port, meeting another in international waters, transferring its goods, and then that second ship continuing the journey,” Jensen told FOX Business of the ship-to-ship transfers.
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“In some cases, the crews might not even fully always appreciate that they’re transporting illegal Russian oil,” added Jensen.
Earlier this year, the 19-year-old crude oil tanker named “Eventin” was seized by German authorities after the ship suffered engine failure in the Baltic Sea. The vessel was previously identified as a ship that exports Russian crude oil and other petroleum products.
German authorities discovered that the Panama-flagged vessel, which was previously named “Charvi” and “Storviken,” was carrying 99,000 tons or approximately $45 million worth of Russian oil.
Jensen said that while some ships in the shadow fleet have been intercepted, a comprehensive, whole-of-government approach is needed.
He described one that brings together the intelligence community, law enforcement, and agencies like the Commerce and Treasury departments to coordinate with international partners, seize vessels, and make it increasingly difficult for Russia to circumvent sanctions.
“You are never going to be able to completely stop all oil smuggling, but you can reduce it and make it harder and harder to do,” Jensen said.
“But don’t think this is only a China or Iran or North Korea issue. There’s a lot of countries where commercial actors see the opportunity to increase their profit margins, and that makes ghost ship oil more attractive.”
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