Traders are increasingly utilizing a new ship-to-ship (STS) loading site in the northern Aegean Sea to transfer Russian diesel cargoes, as Western sanctions target vessels transporting fuel from Russian ports. Since the European Union’s embargo on Russian oil products began in February 2023, traders have redirected diesel exports to various regions, including Brazil, Turkey, and several countries in Africa and Asia, as well as via STS loadings, which complicate tracking by Western authorities.
The Laconian Gulf off Greece has become a favored spot for STS operations due to its strategic location near Russian ports and the Suez Canal, facilitating access to Asian markets. In April, Greece issued warnings for military exercises in the area, advising vessels to steer clear.
Recent data shows that in July, at least four vessels carrying approximately 123,000 metric tons of diesel and gasoil were transhipped from Russia’s Black Sea ports to neutral waters near Chios, Greece. Additionally, three more vessels loaded with around 100,000 tons of gasoil from Tuapse are also on their way to STS locations in the northern Aegean.
Market sources suggest that the latest EU sanctions may be driving the increase in STS activities. In June, the EU adopted a new package of sanctions aimed at curtailing the shadow fleet of foreign vessels transporting Russian oil products. Currently, Russia exports about 3.5 million metric tons of low-sulphur diesel and gasoil monthly, including up to 0.8 million tons from Tuapse and Taman.