Main image: Customs has estimated that the Eagle S oil tanker in the picture belongs to Russia's shadow fleet. Photo: Vesa Moilanen / Lehtikuva
Russia continues to increase its income from oil exports through the Gulf of Finland, despite European Union sanctions aimed at limiting its energy revenues, as reported by Yle.
"Russia makes enormous profits from this route. Last year, the sum reached as high as 1.5 billion per week," says Vaibhav Raghunandan, an expert at the Centre for Research on Energy and Clean Air (Crea).
The EU has been trying to limit Russia's fossil fuel sales with sanctions since Russia's invasion of Ukraine in February 2022. However, the sanctions are leaking badly.
This route remains crucial for Russian oil trade, and the shadow tanker fleet plays an important role in bypassing restrictions. About 30% of Russian oil and petroleum products are transported through the Gulf of Finland, and in 2023, revenues from their sale reached €1.5 billion per week. Up to 70% of the supplies through this route are provided by ships often suspected of violating international norms, including potential damage to underwater infrastructure.
One of the main channels for selling Russian oil remains processing in third countries, particularly in India. Compared to the pre-war period, New Delhi has increased its purchases of Russian oil by 15 times. After processing at Indian refineries, petroleum products are sent to the EU and the US. For example, the Netherlands, which previously bought Russian oil directly, now receives petroleum products produced from Russian oil in India. Despite the EU's embargo on Russian oil imports, oil products made from it in third countries still make their way to Western markets.
Furthermore, some EU countries continue to receive Russian oil via the Druzhba pipeline. Hungary, Slovakia, and the Czech Republic benefit from exemptions from sanctions, which has drawn criticism from other union members.
Experts note that Russia continues to be able to finance its military expenditures from oil revenues, and existing sanctions have not yet fully closed off this source of income.
