Elain Brown Tech 03.28.2022 00:Mar AM EDT

Russian Oligarchs' Tankers Turned Off Tracking Technology To Hide Activities, Evade Sanctions

Tankers owned by Russian oligarchs have been detected to turn off their tracking systems 33 times during the previous week to avoid U.S. sanctions.

In accordance with an International Maritime Organization regulation, all vessels of 300 gross metric tons or more that embark on international voyages are required to install tracking technology, also known as an automatic identification system (AIS), before embarking on voyage.

However, Russia's tanker ships suspiciously turned off their tracking systems multiple times, a practice considered to be done in an unnatural manner. The United States Treasury Department has associated this move as a means of evading imposed U.S. sanctions against Russia.

Russian Oligarchs' Tankers

The number of Russian tanker ships turning off their tracking systems at least 33 times in a week is more than double the weekly average of 14 that was observed in the previous year, according to Windward, an Israeli consultancy that specializes in maritime risk,

This strategy in the maritime industry is also known as "going dark," or "dark activity." This is a strategy that has been identified by the United States Treasury as one of several "deceptive practices" used to evade sanctions

In addition, the data from Windward also reveals that ship-to-ship meetings are taking place, which could last long enough to allow cargo to be transferred to vessels without incurring sanctions.

As reported by Bloomberg, Gur Sender, Windward's program manager stated that "there's no reason why they should have their AIS turned off."

Gur Sender also added, "Investigating if a vessel is engaged in deceptive shipping practices related to specific regimes is crucial to protect your business from dealing with sanctioned entities."

However, Windward notes that the frequency of those meetings is still at a normal level; these dark operations are also detected to have occurred in and around Russia's exclusive economic zone.

It has also been reported that nine superyachts turned off their tracking signals last week, and those superyachts are owned by Russia's oligarchs and tycoons.

Tracking Maritime Vessels

A mandatory broadcast of the AIS location signal by certain classes of vessels on international voyages is mandated by international convention and must be broadcasted at all times.

The Automatic Identification Identification System (AIS) is a vessel tracking system that uses GPS technology to facilitate the transmission and reception of information over VHF radio channels.

According to Marine Insight, "The AIS acts as a transmitting and receiving interference between ships and coast guards with the help of which not only the location of a particular ship but also its position can be monitored."

In addition, when it comes to preventing onboard collisions, AIS is extremely beneficial because it allows vessels to chart and alter their routes whenever and wherever they are required. It also aids coast guards in locating vessels that may be interfering with or manipulating the law.

Transactions to Russian Tankers

Ian Ralby, chief executive of I.R. Consilium, a maritime law and security consulting firm, opines that the government of Russia has quickly become a pariah state. As a result, they are concealing some of their activities since numerous people involved on both ends of a transit do not want any association with the country.

Ralby added, "Anywhere that Russia appears in the overall management or operation and ownership of the vessel, there are concerns about dark activity right now. Almost anything that they are going to be doing is gaining scrutiny and legal concerns because of all the various sanctions."

According to Business Insider, Sam Tucker of the market intelligence firm VesselsValue stated that everyone who works in the yachting industry is apprehensive. The repercussions of doing business with Russians, whether directly or indirectly, are astronomical .