The navy said in a notice that it
will be conducting exercises until May 19 in the Laconian Gulf, an expanse of
water that’s become well-known in the oil market as a location for Russian oil
switching. It had been due to finish on May 9.
A person
familiar with the matter said that the
exercises are aimed at deterring the ship-to-ship transfers. When Greece
first announced the drills last week, tankers quickly evacuated the area,
gathering to the south instead.
The
gulf, surrounded by hills that protect ships from the wind, has become a
pivotal location for the shadowy transfer of Russian cargoes for onward
shipment to buyers in Asia.
However,
because the transfers are happening outside of Greece’s direct territorial
waters, Athens hadn’t been able to prevent the switching. It’s not clear what
has changed for Greece to take a more-assertive approach now. The transfers have sparked concerns of a
major environmental spill in a picturesque area of European coastline.
Denmark,
which is next to a trade route for Russian oil from the Baltic Sea, also
carried out similar, albeit brief, naval activity about a month ago.
When
Bloomberg News visited the Laconian Gulf in September last
year, about a dozen tankers were involved in cargo switching. Some of
them were part of a large so-called shadow-fleet of aging tankers whose
ownership and insurance status was unclear, raising a question about who would
be liable were something to go wrong during the transfer.