Russia continues to export oil through a growing fleet of grey-market tankers that evade Western sanctions, helping fund its military operations in Ukraine, reportsm Kiev's Euromaidan Press.

The Kremlin's "shadow fleet" of oil tankers has expanded in 2025, allowing Moscow to maintain crude exports despite international restrictions. These vessels often operate without insurance, sail with transponders off, and conceal their identities.

Reuters reports that Russian oil remains a major revenue source, accounting for about 77.7 per cent of the federal budget this year. The exports primarily go to China, India and countries in the Global South.

About 70 per cent of Russia's shadow fleet passes through the Baltic Sea, where UK patrols have reportedly intercepted some vessels at key chokepoints.

Saad Rahim, chief economist at trading firm Trafigura, said the tankers are a vital tool for the Kremlin. He noted that the fleet has grown as sanctions have intensified, with new vessels replacing those blacklisted.

Mr Rahim added that US tariffs have had limited impact on global fuel demand. American oil firms continue to budget around a US$60 per barrel price, which is considered their break-even point.

Despite a decline in the number of active oil rigs in the US, production levels have remained stable, he said.