This calm stretch of sea is one of the few areas around the UK where ship-to-ship transfer of oil is permitted. At least twice in May, British-crewed vessels left nearby ports to help move Russian oil between large tankers, according to an investigation by Global Witness and The Independent. After refuelling, the two tankers carried 165,000 tonnes of Russian fuel oil – worth more than £165 million – to the Persian Gulf and Singapore. The shipments are a link in an international chain that has helped Vladimir Putin quickly shift oil sales to Asia as European buyers cut back. Booming trade with China and India has helped swell Kremlin coffers to an unprecedented level, providing a multibillion-dollar war chest for a protracted and bloody conflict in Ukraine. The exact number of Russian oil shipments that have taken place off British shores is not known. They are not illegal and there is nothing stopping British companies from participating, but they are an indication of huge holes in Western sanctions. Last month, in a tacit admission that current sanctions have not been as effective as hoped, G7 leaders announced a proposal to impose a price cap on the amount that can be paid for Russian oil. The hope is that it will stem the flow of cash to the Kremlin, which has been boosted by rising oil prices since the start of the invasion of Ukraine. But experts warn that without a comprehensive crackdown on European ships and companies carrying Russian oil, these efforts will continue to be undermined. Global shipping is among the most opaque and least accountable industries in the world, creating obstacles to Western efforts to turn the screw on Putin. By definition, much of this occurs beyond individual nation states. A large container ship on the horizon off the coast of Southwold, Suffolk (The Independent) The oil shipments identified by Global Witness involved British vessels but took place outside UK territorial waters. Two of the tankers involved belong to German companies. one has a flag in Liberia. Greek and Maltese companies manage two of the tankers while the third has its “commercial operator” registered in Monaco. The ultimate owners of the tankers are hidden behind anonymous shell companies, making them impossible to identify with certainty. Veils of secrecy mean they have little fear of reputational damage from the Russian connection. In fact, as other more image-conscious companies shun Russian oil, profit margins are growing more for those willing to stay the course. Europe’s three major shipping countries – Greece, Cyprus and Malta – have doubled the amount of Russian oil they transport since the start of the war. Meanwhile, British companies at the Southwold pit stop played their own small part. In early May, two huge oil tankers, the Conti Benguela and Matilda left a terminal north of St. Petersburg. Loaded with thousands of tons of Russian oil, they sailed through the Baltic Sea, around Denmark to the coast off Suffolk, where calm seas make a popular spot for tankers to drop anchor. Shortly before dusk on May 13, the hulls of the two ships pulled side by side, according to tracking data. The quiet English coastal town of Southwold has been used as a ‘pitstop’ for refueling oil tankers (The Independent) Documents filed with the Coast Guard outline the plan. A British company called STS Marine Transfers had been well informed of the transfer weeks in advance by the ship’s operators. The company sent a vessel to transfer 14,000 tonnes of fuel oil from Conti Benguela to Matilda. As night approached, a much smaller, high-speed catamaran called the Endeavor ran from the harbor just down the coast to Lowestoft to deliver supplies and take the tanker crew ashore for a much-needed rest. The following week, Conti Benguela repeated the maneuver, refilling a Maltese-flagged tanker called the Nolde, which was carrying 80 million pounds of Russian oil. Wood Marine, a local company that operates the Endeavour, said it would never deal with a Russian ship or crew, but pointed out it had no obligation to check where the oil came from. The owner of the company said it was “just a sea taxi service”. STS Marine Transfers said it complied with all international laws and regulations, including sanctions, and had not renewed its contract with cargo originating in Russia. A work vessel called Endeavor left Lowestoft to meet tankers carrying Russian fuel oil (The Independent) Louis Goddard, an oil expert at Global Witness, who has been tracking the movements of Russian-linked tankers since the start of the war, said refueling at Southwold may have allowed the tankers to travel the long route from Russia via across the English Channel, through the Mediterranean, to the Suez Canal and then to Singapore and Malaysia. European ships, particularly those linked to Greece, Cyprus and Malta, “are mocking the EU’s attempt to impose sanctions on Putin’s war machine,” Godard said. What is certain is that Putin’s successful “pivot to Asia” has been highly profitable. China has quickly become the biggest buyer of Russian oil, adding 8.4 million barrels last month – a 40 percent jump from a year ago. India has also dramatically increased its exports. This leap would not have been possible without European maritime assistance. Europe’s reluctance to impose a full embargo on Russian oil has left it in the worst of both worlds. Consumers and businesses are being hit by huge increases in fuel costs that have only helped boost Putin’s revenues. In response, the G7 has significantly stepped up its rhetoric on Russian oil, but concrete action has been slow to emerge. The group of world powers issued a statement on Tuesday saying it would “consider” a “complete ban” on all services that allow shipments of Russian crude unless the oil is bought below a certain price. The oil price cap would not stop European middlemen and facilitators from moving Russian oil, but it would, in theory, limit how much cash goes to the Kremlin. As with all sanctions measures, there can be big profits for those willing to break the rules. To minimize this risk, some experts are pushing for additional safeguards. Robin Brooks, chief economist at the Institute of International Finance, said a price cap could be “very effective”, but only if ships are barred from taking out insurance if they carry Russian oil priced above the cap. It is becoming increasingly clear that genuine international consensus and concerted action is urgently needed. The consequences of further delay can be extreme. Putin’s war chest, built up from sales of expensive oil, means he could risk losing his other main source of revenue: natural gas. This is a serious concern for Europe. In recent weeks, the Kremlin has sharply cut supplies to Germany, Italy, France and several other EU countries, raising the prospect of blackouts and handouts if supplies run out this winter. Back in Southwold, there are more immediate concerns. The city’s mayor, Will Windell, says ship-to-ship transfers of oil pose an environmental hazard while providing little to no benefit to the local economy. He wants them banned immediately before a major leak occurs. There have been near misses in the past. Southwold Mayor Will Windell says ship-to-ship oil transfers are causing environmental damage to the Suffolk coastline, which has been designated an Area of Outstanding Natural Beauty (The Independent) Even without a major spill, transporting oil to sea is not a clean process. Chemicals are sprayed into the water to disperse any oil that inevitably leaks. Then there are the diesel fumes from 25 or 30 tankers in the area. This coastline has been designated as an area of outstanding natural beauty, but it is also one of the few places in the country where oil is allowed to be transported. “That’s a big industry going on out there,” Windell says, scanning the horizon. “Oil is being transported on an industrial scale and there is no regulation. No one is going to control these ships. The government declined to comment.
