Panama Steps up the Fight Against russia’s “Shadow Fleet”

Panama is tightening the rules of registration of commercial vessels, targeting the so-called “shadow fleet” used to transport russian oil in circumvention of international sanctions. Starting this month, the country will cease registering ships over 15 years old.

This move will have a significant impact on global sea trade, as Panama is the second largest commercial ship registry in the world. Besides, additional inspections of tankers will be carried out every three months to ensure compliance with certification requirements for ships flying Panama’s flag.

The new restrictions will directly affect a significant part of russia’s “shadow fleet,” as the average age of tankers carrying russian oil is 20–25 years.

Two weeks earlier, the Bahamas Maritime Authority announced that ships owned by russian companies, operated by them, or involved in trade with russia while flying the Bahamian flag would be removed from the register. The Caribbean regulator has stated explicitly that if a vessel flying the Bahamian flag is subject to sanctions, the likely consequence will be its removal from the state ship registry.