The ghost fleet helping Russia evade curbs, pursue Ukraine war

In a gray four-story office building above a nightclub with a black door here, a company founded by a Turkish sock and underwear magnate has transformed into one of the world’s largest shipowners transporting Russian oil.

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The firm, Beks Ship Management, has bought 37 ships since 2021, many of them aging oil tankers, spending more than half a billion dollars in a little over two years and increasing the value of its fleet 10-fold.

Companies such as Beks are a critical element in Russia’s attempts to keep supplying oil around the world and fund its war in Ukraine.

The fleet now includes hundreds of vessels around the world, many owned by companies in Greece, India and the United Arab Emirates, as well as Turkey. Many evade Western sanctions by operating outside the usual industry standards, often forgoing insurance with the P&I Clubs, the global networks that insure some 90% of the world’s commercial shipping. Some use a parallel Russian insurance system set up since the war began.

The vessels are frequently aging, some 20 years old or more, and have changed owners multiple times, raising safety and environmental concerns. Shipping analysts say there are growing questions about whether the tankers are properly surveyed, and whether Moscow would pay out in the event of an accident. Russia has said it is pushing for its insurance system to be internationally recognized.

Turkish companies, including Beks, are a particular concern. They have purchased at least 36 vessels that aren’t listed as being insured by the P&I Clubs, drawing further attention to Turkey’s lax enforcement of sanctions on Russia when President Recep Tayyip Erdogan is attempting to repair strained relations with the U.S.

As of February this year, Beks was the fourth-largest shipowner in the Russian oil trade, according to shipping data analyzed by Global Witness, an anticorruption group that has campaigned on Ukraine’s behalf for tougher sanctions.