The Ministry of Transport has uncovered a large-scale scheme involving the use of falsified information by Russia’s shadow fleet to transport oil across the Baltic Sea. During the investigation, 175 vessels were identified that over the past year carried Russian crude under false flags. Authorities warn that in the event of an oil spill or other accident, it may be virtually impossible to identify and hold accountable those responsible for the damage. Most of these ships were actively operating in the waters of the Baltic Sea and the Gulf of Finland, as reported by Yle.
The term “shadow fleet” refers to oil tankers that Russia uses to circumvent Western sanctions and finance military operations in Ukraine. The value of oil transported under false flags is estimated at several billion euros. The commander of the Gulf of Finland Coast Guard, Commodore Mikko Simola, stated that uncertainty regarding flag states became particularly acute in 2025.
As part of its intelligence work, the agency obtained concrete examples of such manipulation. In international waters, responsibility for a vessel lies with its flag state; however, due to disinformation, many tankers are effectively not controlled by any state.
Finnish authorities are highly concerned about environmental risks, as the real owners of the vessels are hidden behind companies in tax havens. In one case, the ministry was able to trace the owner of the tanker Eagle S, suspected of violating cable-laying regulations, to a luxury hotel in Dubai.
In addition to the Baltic, the investigation also covered the Mediterranean, particularly the Hurd’s Bank shoal off the coast of Malta. The Ministry of Transport monitored around 1,400 vessels for more than a year that were serving Russia’s economic interests.
Near Malta, Russian vessels frequently stop in shallow waters known as a key route for smuggling oil, weapons, and drugs. Former Maltese Foreign Minister Evarist Bartolo confirmed that illegal activities, including human trafficking, take place at Hurd’s Bank, with turnover comparable to state budgets.
Russia uses this area to transfer oil from one ship to another at sea in order to conceal its origin and circumvent the established price cap. Maltese locals avoid these shoals; ship captains refuse to transport film crews there out of fear of consequences and alleged links between the local mafia and smugglers.
The situation is further complicated by the spread of fake ship registries. After major maritime states such as Panama removed shadow tankers from their lists, Russia began using forged documents.
Luke Wickenden, an expert at the research institute CREA, explained that the flag state is responsible for technical oversight and safety, and also guarantees insurance coverage. Vessels sailing under false flags operate in conditions of complete lawlessness. In the event of any accident or oil spill, insurance is effectively void, and all financial costs of cleanup fall on coastal states. Commodore Mikko Simola emphasized that due to the existence of the shadow fleet, the risk of disasters in the Gulf of Finland has significantly increased.
