Sweden will begin tightening insurance checks on foreign vessels passing through its waters, aiming to disrupt Russia’s so-called “shadow fleet” — tankers that often operate with fake or inadequate insurance purchased from companies that could never cover the cost of an actual claim.
According to a recent report by the Associated Press, the Swedish government has announced that starting from July 1, the country’s Coast Guard and Maritime Administration will have the authority to collect insurance data not only from ships calling at Swedish ports, but also from those transiting Sweden’s territorial waters and exclusive economic zone (EEZ).
“[This] provides Sweden and our allies with important information about vessels that can be used as a basis for sanctions listings of more vessels in the shadow fleet,” said Prime Minister Ulf Kristersson.
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Sweden’s move is grounded in international law. The country’s exclusive economic zone — defined under the United Nations Convention on the Law of the Sea (UNCLOS) — grants it partial sovereignty up to 200 nautical miles (approximately 370 km) from its coast. In the Baltic Sea, where space is limited, EEZs are divided among neighboring countries, and Sweden controls effectively half of the sea.
Coastal states have rights over the exploration and use of marine resources in their EEZs — both living (such as fish) and non-living (like oil and gas). They also hold regulatory power over economic activity in the area and. However, international law still permits freedom of navigation, overflight, and the laying of cables and pipelines by other states within EEZs, similar to in neutral waters.
That means warships and commercial vessels from other countries can pass through Sweden’s EEZ without permission — as long as they respect international law and Sweden’s sovereign rights.
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The main concern around the “shadow fleet” involves its role in transporting Russian oil and petroleum products to international buyers in circumvention of the $60-per-barrel price cap introduced by the G7, the EU, and Australia in 2022. The fleet has allowed the Kremlin to continue to line its coffers and finance the ongoing full-scale invasion of Ukraine, which entered its fourth year in February 2025.
These vessels, however, are difficult to sanction directly. Many turn off their AIS (automatic identification system) trackers, making them hard to monitor — especially when they frequently change names and flag states mid-voyage, as the Jaguar reportedly did.
Still, authorities can take action on more technical grounds, such as lack of insurance or other necessary documentation. Many shadow fleet vessels are in poor condition — older ships often written off by previous owners and purchased cheaply. As a result, they pose a high risk of environmental disaster.
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