UK Considers Seizing Russian ‘Shadow Fleet’ Tankers, Exploring Use of Oil Revenue for Ukraine
The United Kingdom is escalating its efforts to disrupt Russia’s ability to finance its war in Ukraine, threatening to seize tankers belonging to the so-called “shadow fleet” used to circumvent Western sanctions on Russian oil. The move, confirmed by British defence sources, could open a new front against Moscow as Russia’s oil revenues decline.
Discussions involving NATO allies have identified military options for capturing a rogue ship, though a month has passed since the US-led seizure of the Russian tanker Marinera in the North Atlantic. The potential action comes as Russia increasingly relies on a network of ageing tankers with obscured ownership to continue exporting oil, primarily to China, India, and Turkey.
In January, intelligence from Lloyd’s List indicated 23 shadow fleet ships operating with false or fraudulent flags were spotted in the Channel or Baltic Sea. Richard Meade, editor-in-chief of Lloyd’s List, explained that the Royal Navy possesses the legal authority to challenge these vessels under maritime law, as they are effectively stateless. However, he cautioned that a seizure carries “escalatory risks.”
The UK, along with Germany, France, and other NATO countries bordering the Baltic and North seas, issued a joint statement late last month emphasizing the need for all vessels in those regions to “strictly comply with applicable international law.” Despite setting the conditions for a potential seizure, no action has yet been taken.
Recent briefings to British MPs and peers by the Royal Marines revealed a readiness to act, with personnel described as “champing at the bit” to receive orders to seize a vessel. The Marinera, seized a month ago, had attempted to evade capture by re-registering under the Russian flag after initially flying a false flag.
While Russian complaints following the Marinera seizure were muted, officials acknowledge that a UK or European-led operation could provoke a stronger response from Moscow. To mitigate this risk, a seizure away from the Baltic or Arctic waters is being considered.
The UK is also exploring the possibility of utilizing any seized oil to fund Ukraine’s war effort. Defence Secretary John Healey announced plans to host a meeting of Joint Expeditionary Force (JEF) nations – including Nordic and Baltic countries and the Netherlands – to discuss the “legal basis” for acting against shadow shipping and the “military options” available. “I’d want to see any oil revenue that could be raised from seized sanctioned ships recycled and put into Ukraine in order to fight Putin’s invasion,” Healey stated.
Russia currently produces approximately 10 million barrels of oil per day, with around 5-6 million barrels shipped by sea. Following its invasion of Ukraine, the West implemented a price cap on Russian seaborne crude, prompting Moscow to invest an estimated $15 billion in acquiring around 400 ageing tankers to create its shadow fleet.
Gonzalo Saiz Erausquin, from the Royal United Services Institute, described the shadow fleet as a collection of “old, poorly maintained ships that are opaquely owned, often underinsured and flying flags from jurisdictions either with weak controls or enforcement efforts, increasingly taking up false flags.”
There have been instances of disruption to the shadow fleet, with seven tankers reportedly struck by drones since late November, including the Qendil, attacked in the Mediterranean, with Ukraine claiming responsibility for four of those attacks. However, data assembled by Craig Kennedy, an associate at Harvard University’s Davis Center for Russian and Eurasian Studies, does not yet indicate a significant drop in Russian oil export volumes, which remain above 5 million barrels per day, though down from a peak of 6 million in the autumn.
Recent data suggests Russia is responding to the threat of seizure by re-registering shadow fleet tankers under the Russian flag. The Marinera was one of ten vessels in the Caribbean to do so in December and January, a move that ultimately failed to prevent its capture.
The UK’s increased scrutiny comes at a time when Russia’s economy appears more vulnerable, with economic growth faltering and oil revenues declining. Falling global oil prices, partly driven by increased supply from Venezuela, are further impacting the Russian treasury. Yuliia Pavytska, a sanctions specialist at Kyiv School of Economics Institute, reported that oil and gas revenues for the Kremlin fell by 24% in 2025, accounting for 22% of state income – down from 41% in 2022.
Pavytska suggested that a total EU ban on providing maritime services to Russian ships, coupled with military action, would be particularly damaging to Moscow.
