On Thursday evening, March 12, the Swedish Coast Guard boarded the tanker Sea Owl I south of Trelleborg, off the coast of Sweden. The next day, the authorities They arrested their captainof Russian nationality, and on Sunday a court ordered his formal arrest for using allegedly false documents to operate the ship. This 228-meter-long ship sails under suspicion of using a false flag, in this case from Comoros, and is on the European Union sanctions list.
As explained The Moscow TimesAlthough the ship, which set sail from Brazil, claimed to be heading to Estonia, the Swedish Coast Guard believes its actual destination was the Russian port of Primorsk. This is one more link in the “shadow fleet” that Moscow uses to evade sanctions. In fact, just a few days before, Sweden had seized another ship, the cargo ship Caffasuspected of transporting stolen Ukrainian grain.
A lethal bottleneck. But while the West tightens the noose in the icy Baltic, the true collapse looms in the south. The blockade of the Strait of Hormuz, turned into an impassable “digital fog” by the war between the United States, Israel and Iran, has suffocated the world energy market.
According to The New York TimesIndia—highly dependent on imports from the Middle East—had been in agony for months after Donald Trump’s administration imposed punitive tariffs to force it to stop buying Russian crude. Without quick access to crude oil from the Persian Gulf and with the US ban on Moscow, the Asian giant was looking into the abyss. Indian state refineries were forced to close entire processing units due to the simple physical shortage of oil.
Washington’s retreat. Faced with Iran’s direct threat to shoot up the barrel of Brent at 200 dollarsthe United States has had no choice but to give in. The US Treasury Department has issued a temporary emergency waiver.
This license, valid for 30 days, allows India and other countries to buy Russian oil stranded at sea. Although Treasury Secretary Scott Bessent justified the measure by stating that it seeks to stabilize world prices and that it will not bring “significant financial benefits” to the Kremlin, the reality of the markets dictates a very different ruling.
Russia makes money (and legally). Indeed, the main beneficiary of this crisis is the Kremlin, and it is also doing so completely legally in the eyes of Washington. According to data from Argus Media collected by Bloomberg, Prices for Russian Ural crude oil delivered to India’s west coast have hit a record high of $98.93 per barrel. This historic rebound has occurred precisely after the United States expanded its permission to buy Russian crude oil in the midst of the upward spiral caused by the war in the Middle East.
The humiliating discount that Russia was forced to apply has vanished, reducing it to just $4.80 per barrel compared to the global Brent index. At the diplomatic level, Moscow also gains muscle. According to the Anadolu Agencythe foreign ministers of Russia and India are already talking to use alternative forums to the West, such as the BRICS and the Shanghai Cooperation Organization (SCO), to mediate the de-escalation of the Middle East.
The great irony of international sanctions. On the one hand, Sweden spends police resources raiding Russian ghost ships in the frigid Baltic Sea. On the other hand, offices in Washington are forced to urgently legalize the purchase of crude oil from Moscow to avoid the economic collapse of India and a global recession.
In the end, geopolitics always ends up surrendering to the laws of thermodynamics and infrastructure: the world needs physical energy and, faced with the closure of Hormuz, the West has had to swallow and pay in gold price for the oil of the same country it was trying to suffocate.
Image | Photo by Kelly Sikkema on Unsplash
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