Greek Shipping Owners Profiting From Russian Use Crude Oil Tankers

Data from Vortexa, the shipping analysts, show that Greek shipping operators have jumped at the chance to lift price cap-compliant Russian oil, with the volume of Russian crude being carried on Greek-operated Aframax tankers jumping to a 12-month high.

The shipping boost is due to Russia offering discounted oil to buyers in India and Turkiye, according to Mary Melton, Vortexa’s senior freight analyst, who stated that “The wide range of operators is surprising. The average vessel in this trade is 12 years old, with 26% of these vessels five years or younger. This demonstrates there is no barrier to entry in terms of age.”

Of recent volumes, Melton noted that 60% of these vessels had not previously transported Russian crude for the past six months, while 15% had no Russian voyages since 2023. Two of the vessels carried Russian crude for the first time, previously working trades in Europe and the US Gulf.

Melton said that “This points to Russia’s need to offer discounts to ensure exports continue and could also point to high effort at US sanctions compliance on the part of the likely buyers of these cargoes in India.” Both India and Turkey have, alongside China, emerged as buyers of Russian crude following Russia’s invasion of Ukraine and the subsequent sanctioning of its energy exports by Western buyers.

Following US sanctions on Russian shipping in January this year, Indian officials said any Russian crude loaded after 10 January would not be allowed to discharge in the country, while Turkiye’s largest refiner, Tupras, said it would bar Russian oil. However, under the current sanctions regime, Russian crude purchases are allowed so long as it is below US$65 per barrel. If buyers agree to a price above that threshold, they would have to use non-traditional maritime services and shadow fleet ships or risk ending up on the blacklist of several of the world’s largest economies. Kpler tracking data shows Russian oil en route to Russia, while in reality Turkiye continues to import significant volumes. Much of that Russian oil is then mixed with Turkish or Azeri crude and exported to the European Union as non-Russian, showcasing the absurdity of some of the sanctions measures.

Russian Urals crude oil is currently trading at US$58.71 per barrel and has been below the US$65 price cap for several months. That strategy has meant a redeployment of Greek-operated vessels, most of which have been redirected from Atlantic basin trades, and especially those in the Mediterranean.

That also has implications, as with fewer ships in the region, Aframax owners are benefiting from more favourable tonnage lists. The Baltic Exchange’s Aframax time-charter equivalent assessment has shot up from US$29,141 per day in March to US$49,397 per day last month, with European consumers bearing the brunt of the additional costs while India and Turkiye continue to take advantage of price-cap compliant, cheaper Russian imports.

The number of ships owned by Greek companies broke a new record in March, amounting to 4,221 vessels and establishing the global leadership of the Greek-owned fleet, while Greek Aramax and similar oil tanker construction orders are also at record highs.