Panama is taking action against Russia’s expanding shadow oil fleet.
Earlier this week, Panama announced plans to deregister 128 tankers flying its flag due to their links to U.S.-sanctioned entities.
According to a Bloomberg report, this move is part of a broader crackdown on vessels helping Russia circumvent Western sanctions, particularly in the energy sector.
Ramon Franco, head of the merchant marine at the Panama Maritime Authority, stated that more than 70 of the targeted ships have already been removed from Panama’s shipping register, with the rest expected to follow soon.
This was reported by The Moscow Times.
Crippling Russia’s Oil Exports
This comes amid growing international scrutiny over the Russian Federation’s use of “dark fleet” tankers — vessels that obscure their ownership, flag, and tracking data — to move oil to buyers like China and India, sidestepping the price cap and insurance restrictions imposed by Western sanctions.
As of February, more than 270 Russian-linked tankers were blacklisted, accounting for roughly half of Russia’s seaborne oil exports — an estimated 1.5 million barrels per day.
The U.S. alone sanctioned 183 vessels, along with multiple oil traders and maritime insurers, before the end of the Biden administration.
Faster Reforms, Fewer Loopholes
Panama’s decision to enforce these sanctions more stringently stems not only from political alignment with Western allies but also from internal reforms. In October 2023, Panama adopted a faster deregistration process, slashing the timeline from up to six months to just one.
This has made it significantly easier to expel sanctioned vessels from the registry.
While removing these ships could cost Panama as much as $2 million in lost revenue, the country is signaling that it prioritizes compliance and transparency over short-term gains.
Panama is home to the world’s largest ship registry, with more than 8,000 vessels flying its flag — a longstanding symbol of its status as a “flag of convenience” state due to its low taxes and light regulations. But as global pressure mounts on maritime trade tied to sanctioned regimes like Russia and Iran, Panama’s tolerance for high-risk registrants is visibly shrinking.
Some Russian-linked ships have already responded by reflagging to more lenient jurisdictions or, in some cases, sailing without a flag altogether — effectively becoming maritime outlaws.
Panama’s latest actions follow a dramatic seizure by Germany last week of the tanker Eventin, which had been carrying 100,000 tons of Russian oil under the Panamanian flag. According to Der Spiegel, the Eventin lost control in the Baltic Sea in January and had to be towed by German vessels.
It was later added to the EU’s sanctions list in February for its role in Russia’s shadow oil fleet.
