Greek shipping companies have earned at least $3.8bn transporting Russian crude oil since mid-2023, as a leading member of Russia’s shadow fleet, the Financial Times reported on July 7.

Analysis by the FT found that Greek-owned tankers have remained among the largest carriers of Russian crude under the G7's oil price cap regime, and account for about a fifth of the Russian shadow fleet transporting Russian oil mainly to Asian markets.

The oil price cap sanctions imposed at the end of 2022 meant that EU ships were not allowed to carry Russian oil if the cost of a barrel was more than $60. However, through so-called attestation fraud that mispriced the value of a barrel of oil or hid some of the costs, not a single barrel of Russian crude oil was sold below the oil price cap of $60. More recently the EU tried to close this loophole by introducing a floating rate oil price sanctions cap of 15% below market rates for the Urals blend, Russia’s main export product, but this fix also failed to stop the transport of oil. Last year Russia earned $160bn from oil exports which have largely been unaffected by the sanctions regime.

The biggest beneficiary has been Dynacom Tankers, controlled by Greek shipping magnate George Prokopiou, which generated at least $915mn in freight revenues carrying Russian crude since July 2023, according to FT calculations. The figure accounts for almost a quarter of the revenues earned by Greek shipowners from the trade over the period.

The Onassis Group's Olympic Shipping and Management ranked second with at least $404mn in revenues, while Athens-based tanker operators Stealth Maritime and Polembros Shipping each earned more than $200mn.

The flow of oil has been a lifeline for the Kremlin that is spending about 40% of its budget on defence but has been struggling recently with a ballooning budget deficit as military spending continues to rise. Ukraine has attempted to curtain the stream of money by an escalating bombing campaign of Russian refineries that has caused a fuel crisis, but has not impacted the Kremlin’s oil export revenues to any significant decree.

The loophole that allowed Greek shipping to work for the Kremlin is the result of contradictory goals. Since the G7 introduced its price cap in December 2022, the policy has sought to reduce Moscow's earnings from oil exports but at the same time not to restrict supplies to the international market that could have provoked price spikes.

Western shipping, insurance and financial services remain available for Russian crude only if cargoes are sold below the cap, currently set at $44.10 per barrel. During the Iran war the cost of Brent rose to a peak of $113 per barrel, but in order to ensure sufficient supplies the US granted India a temporary 30-day waiver on the ban on buying Russian oil. Since US President Donald Trump signed a Memorandum of Understanding (MoU) with Iran oil prices have collapsed again to around $70, but the discount on the Russian Ural blend, the subject of the sanctions, has fallen further and Moscow is currently offering a reported $25 discount on its oil taking the effective price down to below $40 – less than the sanctions cap.

Shipowners are required to obtain written attestations confirming compliance, although former sanctions officials have repeatedly questioned how effectively the system is monitored. Attestation fraud was reportedly widespread.

The trade has become an increasingly contentious issue between Greece and Ukraine. Several Greek shipping companies, including Dynacom, were designated by Ukraine's National Agency on Corruption Prevention in 2023 as "international sponsors of war" because of their continued involvement in transporting Russian oil. The companies were subsequently removed from the list following diplomatic pressure from Athens.

Despite mounting political criticism, Greek operators have continued to play an outsized role in Russian exports. According to marine intelligence firms Windward and Vortexa, almost 15% of Russia's seaborne crude exports in May were transported by Greek-owned vessels.

"There is money to be made there and no one else will go in and make that money," maritime intelligence analyst Michelle Wiese Bockmann told the FT, referring to Greek shipowners' willingness to operate in the Russian trade despite the legal, political and reputational risks.

Greek owners have long cultivated a reputation as some of the shipping industry's most aggressive risk-takers. Dynacom has also remained one of the most active tanker operators transiting the Strait of Hormuz since the latest Gulf conflict erupted earlier this year, underscoring the industry's willingness to continue operating in regions where freight rates command substantial premiums.

According to shipbrokers familiar with the market, charterers typically pay 30% to 40% higher freight rates to transport Russian crude than for comparable cargoes originating from countries unaffected by Western sanctions. The higher returns reflect the additional legal scrutiny, insurance complications and reputational risks associated with the trade.

The FT based its analysis on freight assessments compiled by pricing agency Argus Media, combined with tanker movement data from Kpler and ownership records maintained by the International Maritime Organization. The calculations cover 389mn barrels shipped on routes for which Argus publishes freight estimates, while excluding a further 153mn barrels of exports for which pricing data were unavailable.

Eight of the twenty shipping companies generating the highest revenues from Russian crude since June 2023 are Greek. The remaining operators are predominantly Russian state-controlled companies, including Sovcomflot and Rosnefteflot, or affiliated subsidiaries, with Hong Kong-based ship manager Prominent the only significant non-Russian exception.