Malta emerges as new hotspot for Russia-linked ship-to-ship oil transfers

The sea surrounding Malta has become a haven for ships transferring oil to other ships away from the prying eyes of authorities.

Much of the oil being traded, observers say, is linked to Russia, despite European Union sanctions on the country following its invasion of Ukraine in early 2022.

Until recently, the coast off Laconia, Greece, was the favoured refuge for vessels involved in such transactions. However, the Greek Navy moved in and declared the area a no-go zone for marine traffic, thereby disrupting the transfers despite making no official statement as to the purpose of the move.

Many of these oil tankers have now shifted to other areas off Italy and Western Africa, but the sea surrounding Malta has won the lion’s share of the trade.

MarineTraffic records show that from 1st May to 1st August 2024, there were 122 ship-to-ship (STS) transfers recorded in various regions.

Of these, 54, or 44 per cent, occurred in the Malta lightering area.

Augusta, Sicily followed with 11 transfers (or nine per cent), with Lome, Togo, just behind with nine transfers (seven per cent).

“This redistribution illustrates the maritime sector’s resilience and strategic flexibility as operators adapt to regulatory environments to maintain operations within the Mediterranean,” noted MarineTraffic.

The transfers point to the ways in which the global oil trade has shifted as Russian producers seek to evade the stringent sanctions effected by European states.

Last year, a landmark Investigate Europe report detailed the global networks involved in disguising the providence of fuel for Western markets.

For example, while Indian refineries imported almost no Russian oil before the war, the Sikka port in Gujarat is now the largest global importer, and the largest exporting port to the EU.

“A lot of Russian product is flowing Εast… the Indians are refining it, and then shipping it back to Europe. Russian molecules are still entering the European market, just in different forms,” said an oil trading executive.

STS trades do not necessarily indicate illicit dealings. With costs a fraction of the regular method of going through terminals, the attraction is there for even traders with no intention of bypassing regulations.

However, the nature of the trades – which by their nature include no third-party surveillance – attracts those who prefer to keep transfers away from authorities.

In an analysis, S&P Global found that Russia-linked oil is behind a 225 per cent spike in ‘dark’ STS transfers, where ships turn off their tracking devices.