India has emerged as the largest recipient of Russian crude oil transported through a growing "shadow fleet" of tankers using false flags and deceptive practices to bypass Western sanctions, according to a comprehensive report by the Helsinki-based Centre for Research on Energy and Clean Air (CREA).
Massive Scale of False-Flag Operations
Between January and September 2025, India imported a staggering 5.4 million tonnes of Russian oil worth 2.1 billion euros aboard 30 vessels that sailed under false flags. This represents nearly half of all Russian oil transported through such deceptive means during this period.
The CREA report, released on Thursday, reveals that Russia has dramatically expanded its shadow fleet operations since the full-scale invasion of Ukraine in February 2022. Western sanctions targeting Russian energy exports prompted Moscow to develop sophisticated methods to continue oil shipments to key markets including India, China, and Turkey.
Explosive Growth in Shadow Fleet
The scale of Russia's shadow fleet operations has reached alarming proportions. According to CREA's findings, 113 Russian vessels had sailed under false flags in the first nine months of 2025, carrying 13% of Russia's crude oil exports - equivalent to 11 million tonnes valued at 4.7 billion euros.
"As of September 2025, there were 90 Russian 'shadow' vessels operating under false flags—a six-fold increase from December 2024," the think tank reported. This rapid expansion underscores the effectiveness of Russia's sanction-evasion tactics.
India's Strategic Shift to Russian Crude
India, traditionally dependent on Middle Eastern crude, dramatically increased imports from Russia following the Ukraine invasion. The availability of discounted Russian oil caused Moscow's share of India's imports to skyrocket from below 1% to nearly 40% of total crude imports in a remarkably short time frame.
As of November 2025, Russia remained India's largest oil supplier, providing over a third of its total crude requirements. This strategic shift has provided significant economic benefits to India while helping Russia maintain its oil revenue streams despite Western sanctions.
Environmental and Security Risks
The shadow fleet operations pose serious environmental and security concerns, according to energy analyst Luke Wickenden, co-author of the CREA report. "The insurance of any vessel flying a false flag is void, which, combined with the fact that a lot of these tankers are old and have been re-commissioned almost from scrap, increases risk for coastal states which fall on their routes, in the event of accidents or an oil spill," he warned.
Wickenden highlighted that false-flagged vessels carried EUR 1.4 billion worth of Russian crude oil through the Danish Straits in September 2025 alone, demonstrating the massive scale of these operations.
Legal Violations and Regulatory Gaps
International law requires vessels at sea to fly a flag granting legal jurisdiction, but some countries maintain open registries that allow foreign-owned ships to register at lower costs under lighter regulations. Shadow fleet operators are exploiting these loopholes systematically.
CREA reported that 96 sanctioned vessels had flown false flags at least once this year, while 85 ships changed flags twice or more within six months of EU, US, or UK sanctions being imposed.
The think tank identified six registries that had not previously flagged Russian ships but each had at least 10 vessels by September 2025, bringing the total shadow fleet to 162 vessels.
Call for International Action
CREA has urged the European Union and United Kingdom to lead global reforms to address this growing problem. The organization warned that false-flag operations violate Article 94 of the UN Convention on the Law of the Sea (UNCLOS) and pose mounting environmental and security risks to European and British coastlines.
The think tank emphasized that detaining such vessels would disrupt Russian oil logistics, increase costs, and reduce the reliability of the flows that are sustaining Moscow's war effort in Ukraine.
The report serves as a stark reminder of the challenges in enforcing international sanctions and the sophisticated methods employed by Russia to maintain its crucial oil export revenues despite widespread condemnation of its military actions in Ukraine.
