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Photo: Panama Ship Registry
Panama has amended its ship registry policy to improve fleet performance and reduce vessel detentions, according to a report by the Russian news agency Interfax. The new rules will have the effect of preventing older vessels — like many of those associated with the so-called “shadow fleet” — from sailing under the Panamanian flag.
The “shadow fleet” consists of hundreds of oil tankers — many of them aging — that are used by Moscow to circumvent Western sanctions. In December 2022, the member states of the G7 joined with the European Union to impose a $60-per-barrel price cap on Russian oil as part of an effort to reduce the Kremlin’s revenues amid the ongoing invasion of Ukraine.
Many “shadow fleet” vessels are insured by questionable firms — or are not insured at all. Their age creates significant risks of oil spilling into the environment. In addition, many of these ships are owned by shell companies in jurisdictions with lax regulatory oversight. Ships in the “shadow fleet” typically sail under flags of convenience — such as Panama, Liberia, or Antigua and Barbuda — in order to avoid scrutiny and regulatory compliance.
The Panama Maritime Authority announced that starting from Aug. 1, it has stopped registering tankers and bulk carriers over 15 years old. The decision follows a review of inspections and detentions involving Panama-flagged ships, which highlighted both sanctions-related and operational risks.
A study by the Directorate General of the Merchant Marine found that between 2023 and mid-2025, 71% of all detentions involved general cargo ships, bulkers, and oil tankers older than 15 years. In response, authorities have decided to limit access to Panama’s ship registry for aging vessels.
In addition, classification societies that issue mandatory certifications will now be required to conduct inspections every three months. Registry officials say the changes are intended to ensure that Panamanian-flagged ships comply with the strictest international standards.
Panama currently holds the position of the second-largest ship registry in the world when measured by number of vessels under its flag.
In March, Panama revoked the registration of 128 ships, most of them Russian and Iranian, after they were placed under international sanctions.
Germany and Sweden have both announced that they will tighten inspections of oil tankers passing through their territorial waters, and that they will use insurance checks for foreign ships as a potential tool for detaining “shadow fleet” vessels.
Much of the oil carried by the “shadow fleet” is destined for countries not participating in the sanctions regime against Russia, most notably China, India, and Turkey.