By John Q. Hosedrinker 
During the 80th session of the United Nations General Assembly, Ukrainian President Volodymyr Zelenskyy and Panamanian President José Raúl Mulino discussed the importance of sanctions against Russia, specifically addressing the nation’s shadow fleet. Zelenskyy commended Panama’s revocation of registration for over 200 Russian tankers. Additionally, they discussed collaborative efforts to return Ukrainian children abducted by Russia and the need for Panama’s support of a resolution condemning these actions. Zelenskyy also thanked Panama for their overall support.
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Panama Revokes Over 200 Russian Tankers, joining the global effort to curtail Russia’s activities, recently took a significant step by revoking the registration of over 200 Russian tankers. This action, encompassing vessels deemed unsafe for operation, underscores a growing international determination to hold Russia accountable. The decision sparks a reflection on the nature of maritime regulations and the implications of turning a blind eye to substandard vessels.
Frankly, it’s difficult to determine the more concerning aspect: that these Russian vessels were even allowed to operate or, perhaps even worse, that some of them were demonstrably unsafe. There’s a clear implication here – a need to reign in the actions of a state that has shown a disregard for international norms. This move by Panama is, in essence, a form of diplomatic pressure, and it warrants serious consideration as to its long term effects.
The action will hopefully, in the long run, help to cripple Russia’s ability to conduct its operations, and hopefully make the world a safer place. This is the type of strong action that is needed. The removal of a vessel’s flag – the country under which it is registered – will, essentially, render these vessels unable to continue sailing. This is not merely a symbolic gesture; it’s a practical measure that limits Russia’s access to global shipping routes. It’s akin to cutting off a vital supply chain, hindering their ability to move goods, including potentially dangerous materials.
However, it’s crucial to recognize the complexities of international shipping. Panama, along with Liberia and the Marshall Islands, operates as a “flag of convenience.” This means that vessel owners register their ships in these countries because of lax regulations and often lower fees. This is a common practice that allows ship owners to sidestep stringent requirements and regulations, and to operate at a lower cost. This makes you wonder exactly how many of these vessels have been sailing that are potentially on the brink of collapse. These vessels are used to transport everything from fertilizer to military grade missiles!
The intention behind this practice is to ensure these ships make one last run in an area or country where their demise will not garner attention from owners, shareholders, or the media at large. This is especially true in less developed countries where oversight is lacking and environmental regulations are even more relaxed. It’s an unsettling thought that the global shipping industry might be hiding vessels whose existence is, essentially, a risk factor in the waters of the world.
You see, the use of flags of convenience facilitates a kind of opacity. It allows ship owners to avoid environmental, labor, and tax laws that are designed to create a level playing field for international operations. Panama, Liberia, and the Marshall Islands are the main flag-of-convenience players, and their governments use the registration fees as an important source of revenue. The revenue generated from these fees helps to pad their government revenues.
This whole situation is really a study in how a tiny percentage of people can negatively affect an entire nation. The entire geopolitical situation and international operations can be derailed by a group that wants to maintain its power. The question really is, can there ever be a solution to this?
The fact that over 50% of the global shipping fleet, by tonnage, is registered in these few countries, shows how consequential this action from Panama truly is. By revoking these registrations, Panama is making it harder for Russia to operate its shadow fleet, which in turn could very well raise costs. The consequences of this, of course, is that it makes Russian oil less profitable. Already we have seen very low prices for Russian oil, and these sorts of actions can be very impactful.
While assurances might be given about the safety regulations, the fact that Panama took this step shows that, in reality, that might not be the case. Ultimately, the world has now taken a step closer to ending Russia’s blatant disregard for all types of international protocols.