The Comoros-flagged tanker Conico Atlas, reportedly part of Russia’s shadow fleet, has become the centre of a legal dispute in India, halting its planned demolition at the Alang shipbreaking yard.
The vessel, which arrived in Alang in June 2025, was initially sold for scrap after being denied entry into India’s Vadinar Port earlier this year. The sale followed the vessel’s arrest in India, triggered by a failed transaction and subsequent claims by the buyer, Global Maritime, that the ship was sanctioned and misrepresented during the sale process.
According to court filings, Global Maritime had paid a 10% deposit and signed a deal with Indian recycler Shri Gautam Ship Breaking for the tanker’s demolition. Customs duties, port charges, and a letter of credit were reportedly cleared ahead of the beaching process. However, when Global Maritime attempted to make the final payment via Mashreq Bank, the transaction was blocked due to sanctions imposed on the vessel by authorities in the UK, EU, Australia, Canada, Switzerland, and New Zealand.
The tanker’s registered owner, Tachio Trading, is accused of withholding information about the sanctions during the sale. Despite the blocked transaction, the owner allegedly continued to pressure the buyer to complete the deal.
In response, Global Maritime has filed a petition seeking to void all agreements related to the vessel and recover its payments with interest. The petition has led to a stay on the scrapping of the Conico Atlas, which remains at Alang.
Shipbrokers BRS commented that tankers from the so-called “grey fleet”—vessels operating outside standard regulatory frameworks—rarely exit the shadow network unless sold to similarly positioned operators. Most cash buyers and recyclers prefer U.S. dollar transactions, which makes them vulnerable to secondary sanctions if the U.S. government enforces measures against dealings in grey tonnage.
With global ship demolition activity remaining subdued, some shipbreaking yards are willing to accept sanctioned or shadow fleet vessels at discounted rates to offset low availability of tonnage. Data indicates that between 2024 and 2025, 15 such grey tankers were scrapped, 8 of which were directly or indirectly sanctioned.
However, industry experts caution that if the overall demolition market improves, breakers are likely to turn away grey tonnage due to the legal and financial risks involved.
