Shadow fleet interception reveals hidden supply chain risks

How Russia’s shadow fleet exposes new due diligence challenges

The French Navy’s detention of the oil tanker Boracay on 1 October 2025 highlights a growing vulnerability in global supply chains: the deliberate use of shadow fleet vessels to evade sanctions and disguise ownership, exposing companies to serious compliance, reputational, and operational risks.

The Boracay, carrying 750 000 barrels of Russian crude oil from Primorsk to India under a Benin flag, had previously operated under several names — Pushpa, Kiwala, and Varuna. It appears on UK and EU sanctions lists as part of Russia’s covert export network. French forces detained two crew members after the ship’s nationality and ownership could not be verified.

The case gained urgency after mystery drones disrupted Danish airports in late September, with naval analysts linking the Boracay to vessels possibly involved in hybrid reconnaissance activity.

Understanding shadow fleet operations

Shadow fleet vessels obscure ownership and flag identity to bypass sanctions and continue restricted trade. They often share clear warning signs:

• Frequent name or flag changes
• Registration in low-oversight jurisdictions
• Opaque ownership structures
• Unverifiable beneficial owners

In April 2025, Estonian authorities detained the Boracay (then Kiwala) over a contested registry. Such incidents illustrate how fast-changing vessel identities make traditional due diligence ineffective.

Why shadow fleet activity matters for business

The Boracay case underscores how sanctions evasion extends beyond governments and shipping lines. It directly affects any company relying on maritime logistics.
Europe now faces what Danish Prime Minister Mette Frederiksen called a “hybrid war,” where commercial vessels can double as instruments of state influence or sabotage.

Key risks for businesses include:

• Sanctions exposure: Hidden ties to sanctioned vessels or intermediaries.
• Reputational damage: Association with sanctions circumvention or hybrid operations.
• Operational disruption: Supply-chain delays or loss of critical shipping routes.

Even legitimate transactions can carry hidden exposure when partners fail to verify vessel identities or beneficial ownership.

Strengthening sanctions due diligence

As noted in our first article on managing sanctions risk, traditional compliance checks are no longer enough. Spreadsheet-based audits or annual verifications cannot keep up with vessel re-registration and sanctions updates.

Modern sanctions compliance requires:

• Verification of vessel ownership across multiple databases
• Cross-referencing IMO numbers against UK, EU, and US sanctions lists
• Continuous monitoring for flag or name changes
• Assessing beneficial ownership, not just registered operators

Factlines’ role in supplier sanctions management

Factlines helps organisations build sanctions resilience directly into supplier and logistics workflows. Our platform uses structured self-assessment questionnaires (SAQs) and automated follow-ups to transform supplier data into actionable risk intelligence.

With Factlines, companies can:

• Assess suppliers and logistics partners for potential sanctions exposure through structured self-assessment questionnaires
• Collect and document vessel information such as IMO numbers, registry details, flag history, and ownership transparency provided by partners
• Set up follow-ups and reminders when suppliers need to update or clarify their information
• Maintain clear audit trails that demonstrate due diligence and compliance readiness

Collecting supplier data is only the first step. The value lies in continuous risk management:

• Continuous monitoring instead of annual checks
• Audit documentation showing compliance readiness

These functions enable organisations to move from reactive compliance to proactive risk mitigation, identifying shadow fleet exposure before authorities or media do.

Compliance as a strategic advantage

The Boracay incident will not be the last. As sanctions frameworks expand and geopolitical tensions deepen, shadow fleets will continue to challenge corporate due diligence.

Companies that integrate structured supplier assessments and automated monitoring into procurement and shipping decisions are better protected from disruptions and reputational loss.

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Book a demo to discover how Factlines simplifies sanctions compliance and enhances supply chain risk management.