Swedish shipping firms sell old vessels to Russian shadow fleet

Ten tankers sold by Swedish shipping companies since Russia’s invasion of Ukraine now operate in the Russian shadow fleet, an investigation by public broadcaster SVT shows.

The vessels, previously named Stena Provence, Stena Paris, and Stena President, have been renamed Mandala, Sofia K, and President I, and are transporting Russian oil through the Baltic Sea.

Mandala, sold by Stena-owned Concordia Maritime in 2022, has since the invasion carried Russian oil worth over SEK 5 billion. As recently as April this year, the tanker left the port of Primorsk with a cargo valued at nearly SEK 600 million, passing close to Sweden’s coast en route to Brazil.

SVT has identified ten tankers sold by Swedish owners after the invasion that are now assessed to be part of the shadow fleet. Some appear on international sanctions lists, while others are linked through vessel data and ownership analysis.

Demand for older tankers surged after the invasion, as sanctions and price caps forced Russia to build a parallel transport fleet, driving up prices and creating a lucrative market for Western shipping firms.

Public records indicate the ten Swedish vessels were sold for a combined total exceeding SEK 1 billion. The resale value of an older tanker can range from tens to hundreds of millions of kronor.

Erik Hånell, CEO of Stena Bulk, called the situation “very unfortunate” and said the company does everything possible to ensure vessels end up in “serious hands.” He stated that Stena Bulk follows laws and regulations, conducts rigorous background checks, and has no control over subsequent transactions.

“We run a commercial operation and must be able to buy and sell vessels according to the requirements in place,” Hånell said, adding that the decision to sell several of the ships was made before the invasion.