Russia calls the shot re shadow fleet

An estimated Russian fleet of 600 cargo ships are considered as shadow fleet by the West simply because these are not registered with the Lloyds Registry in London. It was the decision by EU/G7 not to allow Russian ships to be so registered. The crux of the matter is, it is not the West that is calling the shots but Russia.

Prohibiting registering of ships at Lloyds is not a great deal. There is no requirement in the International Maritime Law that all sailing ships must be so registered to transverse the oceans. The West did this in order to give strength to their sanctions regimes against the carriage of Russian oil. Western European nations especially in the Baltic Sea have made several futile attempts to interdict ships purportedly carrying Russian oil on the footing that the tanker is not registered at Lloyd therefore could be deemed as one of the shadow fleet.

Russia on the other hand would not mind getting her fleet registered at Lloyds but it was EU/G7 combo that prevailed with the Lloyds not to proceed with such registration. Consequent to this it was Lloyd that lost revenue. Furthermore, marine insurance companies located in London also had to forego handsome revenue in terms insurance premium as regards to the vessel and the contents that she carries. A point of fact is Russia pumps out 3.5 Million bpd and the bulk is transported from her ports via the Baltic Sea.

Russia has taken the following manoeuvres as part of her offset business strategy:

1. When countries such as Sweden declared part of the sea bed as Exclusive Economic Zone (EEZ) beyond the 12 miles territorial sea boundary, Russia countered that any ship can navigate in the EEZ without being harassed by the concerned nation as provided by the International Maritime Law.

2. Although under United Nations Convention on the Law of the Sea (UNCLOS) a coastal nation is entitled to claim 200 nautical miles from her coastline as EEZ, this need be done without impinging the rights of other neighbouring nations as well the right of any vessel from any other country. Russia is adamant in that, she has the right to traverse thru such EEZ.

3. As Barack Obama once quipped “law has unintended consequences” Russia was emboldened to use her naval power in combination with air power to pre-warn and failing which attack and destroy the sea-bine assets of countries that harass Russian oil tankers.

4. Russian will and the muscled business strategy of using her military power was evident in a recent incident when Estonia sent her naval vessels to threaten Gabon flagged Argent/Jaguar which was sailing thru her EEZ. A solo SU-35 appeared over the horizon. Estonian navy vessels scrambled to retreat in a fashion that could potentially knock one on another. The Baltic Chihuahuas Estonia, Latvia and Lithuania are expected to taste the bitter medicine in the offing do they persist provoking the Russian Bear!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist