•Definition: Flags of Convenience refer to the practice of registering ships in countries with lax regulations, such as Panama and Liberia, to avoid scrutiny and reduce operational costs.
•Purpose: FoCs obscure ship ownership and facilitate tax avoidance, enabling easier evasion of sanctions.
•Flag Hopping: Ships frequently change flags to evade regulations and sanctions.
•Connection to Russian Ships: Following sanctions, many Russian vessels allied with Indian firms, allegedly using Indian shipping routes.
•Increase in Certifications in India: The Indian Register of Shipping (IRS) reported a rise in certifications for vessels linked to Russian shipping, leading to accusations of facilitating a shadow fleet.
•Challenges: Experts highlight the difficulty of enforcing sanctions against Russian oil due to the intricate structure of global shipping and potential economic repercussions.