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The European Commission has finalised reforms requiring all vessels to provide proof of insurance when passing through EU waters, part of a crackdown on a growing fleet of high-risk, ageing tankers. 

The so-called shadow fleet, a vast number of vessels used to ship fuel without the involvement of western banks and insurers, has grown considerably since Russia’s invasion of Ukraine and the subsequent imposition of sanctions across G7 nations. 

Tankers are typically old, with many showing a history of inspection problems and defects, yet often sail without insurance covering events such as oil spills, prompting campaign groups to warn of a potential environmental disaster. 

In February, the European Commission proposed reforms requiring all vessels to prove they are properly insured if passing through the bloc’s territory, even if they are not calling at an EU port. 

It described the move at the time as a “significant step towards… addressing the risks posed by the so-called shadow fleet”. 

Those changes took effect last week, and the Commission has since submitted a proposal to the International Maritime Organization to amend mandatory ship reporting systems in and around European coastal states. 

Magda Kopczyńska, the Commission’s director-general for mobility and transport, says: “This is a targeted measure with potentially great impact, enhancing the preparedness of the EU’s coastal states. 

“It reflects the EU’s dedication to safer, more secure, and environmentally responsible maritime operations, aligning its regulations with international standards and tackling the challenges associated with hazardous cargo and geopolitical tensions.” 

The reforms follow growing pressure from campaigners, including the Centre for Research on Energy and Clean Air (Crea), which argued last year that all tankers should be required to provide proof of adequate P&I insurance cover. 

Maritime analytics firm Windward says the reforms are a “major step” in the EU’s fight against the shadow fleet, which it describes as a “massive problem” for authorities. 

Windward says that over a 180-day period, its platform identified 1,682 tankers defined as “grey” or “dark” operating within EU waters, responsible for nearly 37,000 port calls. 

These vessels “are everywhere”, it adds, with thousands detected in the Baltic Sea, the Mediterranean Sea and Atlantic corridors. 

However, the company says the requirements not only affect enforcement authorities, but also present a challenge to shipowners and operators, which should consider adopting real-time insurance verification tools to ensure they avoid delays, detentions or penalties. 

“With tens of thousands of voyages across EU waters each month, the expectation to provide proof of insurance for every vessel, even those merely passing through, creates a major operational burden,” Windward says. 

“Paperwork that was once needed only for port entry must now be ready at all times.” 

It also warns shadow tankers are more likely to flout safety and compliance measures, and have a long history of deceptive shipping practices such as location manipulation, obscure ownership structures and ship-to-ship transfers. 

In some cases, insurance companies have allegedly been duped into providing cover for vessels shipping oil above the G7 price cap. 

UK authorities said in November last year they had found instances of companies using fabricated or falsified certificates of origin to obtain insurance despite being in breach of western sanctions. 

Experts have also warned that some insurers “literally exist to cater to companies engaged in sanctions evasion”.