According to TradeWinds research, about 400 unknown buyers have purchased oil tankers after the war began in 2022. This could indicate a switch of new vessels to trade Russian oil following the European Union's embargo on its imports. Switching vessels to the Panamanian flag eliminated the risk of EU sanctions and may be beneficial for the Russian "shadow fleet".
At the same time, the risk of secondary sanctions is virtually non-existent for Panama, says Konstantin Krasnokutskiy: the mere registration of a vessel under the flag is not in itself a sanctioned transaction. "Despite the fact that since recently Panama maintains a closed register of beneficiaries, theoretically the real beneficiary can hide behind two nominees," continues Krasnokutskiy. - Therefore, Panama may remain an attractive jurisdiction for companies under sanctions."