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Panama tries to crack down on shadow fleet – How many are Russian, and are we about to see secondary sanctions on Russian oil?

ENB Pub Note: This minor update from Splash24/7 on the Panama update to procedures for the dark fleet oil tanker ship-to-ship transfers. One has to wonder why Panama is making this announcement to Panama-flagged ships, and secondly, whether it will be effective. The transponders and GPS equipment are turned off or spoofed to look like other ships, and the methodology for bypassing sanctions has become a true art form. 

Has President Trump’s Administration done more than take control of the Panama Canal? 

As of March 2025, Panama’s Maritime Authority announced plans to deregister 128 vessels linked to Russia and Iran’s “shadow fleet” due to sanctions from the United States, its allies, or the United Nations. At least 70 of these tankers have already been removed from the registry. However, the exact number of Russian tankers currently flagged under Panama is not explicitly stated in available sources, as the focus is on the total number of sanctioned vessels, which includes both Russian and Iranian tankers.
A report from January 2025 indicates that Panama was de-listing 68 vessels sanctioned by the US, many of which are part of Russia’s shadow fleet. Earlier, in December 2024, Panama was noted to be cancelling the registration of six specific tankers due to UK sanctions. Given Panama’s role as the world’s largest ship registry, with over 8,500 vessels, and its historical prominence in flagging Russian oil tankers (28% of dark fleet tankers calling at Russian ports in February 2023), it’s likely that a significant portion of the 128 vessels are Russian. However, precise figures for Russian tankers still flagged under Panama are not provided, and some vessels may have already switched to other registries like Tanzania or São Tomé and Príncipe.

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The Panama flag has strengthened its requirements for ship-to-ship (STS) oil transfer operations involving tankers registered under its flag in a bid to crack down on the shadow fleet.

Effective immediately, all Panama-flagged vessels with a gross tonnage of 150 or more must notify the flag sate at least 48 hours in advance of any planned STS operation, providing detailed technical, logistical, and operational information. In addition, vessels must update their STS operational plans to reflect this new notification requirement and retain onboard an electronic acknowledgment of receipt.

“This initiative addresses the growing use of opaque vessels to circumvent international sanctions, transport undeclared crude, or evade environmental safety regulations—practices commonly associated with what is known as the shadow or dark fleet,”said a senior official from the Panama Maritime Authority.

Panama has come in for criticism over the large number of shadow fleet tankers on its books, subsequently acting to deregister many vessels.

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