Traders are increasingly utilizing a new ship-to-ship (STS) loading site in the northern Aegean Sea to handle Russian diesel cargoes, as Western sanctions have made it challenging for vessels carrying fuel directly from Russian ports. Since the European Union's embargo on importing Russian oil products went into effect in February 2023, there's been a noticeable shift in how diesel exports are routed. Traders have redirected these exports to countries such as Brazil, Turkey, and various African and Asian nations, as well as using STS loadings to obscure the origins of the Russian oil. The Laconian Gulf off Greece has become a favoured location for these STS transfers due to its strategic position near Russian ports and the Suez Canal, which provides access to Asian markets. This area has seen increased activity as it offers a discreet option for moving Russian oil products amid the sanctions. In response to this surge in activity, Greece issued two notices in April warning of military exercises in the Laconian Gulf, advising vessels to avoid the area to ensure safety. As a result of these restrictions, tankers carrying Russian oil products have begun shifting their routes away from south-eastern Peloponnese waters. Many now head to ports like Malta and Port Said in northern Egypt. For example, in July, data shows that at least four vessels carrying a combined total of about 123,000 metric tons of diesel and gasoil, loaded at Russia's Black Sea ports of Taman and Tuapse, were seen conducting their transhipment in neutral waters south of the Greek island of Chios. This shift highlights the ongoing adaptation of maritime trade routes in response to geopolitical pressures and sanctions. In August, three more vessels have been loaded with about 100,000 tons of gasoil at Tuapse and are now heading towards ship-to-ship (STS) transfers south of the islands in the northern Aegean, according to traders and shipping data. This uptick in STS activity might be linked to the latest EU sanctions, which have intensified efforts against Russia's so-called shadow fleet—foreign vessels involved in transporting Russian oil products. The EU's latest sanctions package, adopted in June, aims to target these elusive operations more effectively. Currently, Russia is exporting roughly 3.5 million metric tons of low-sulphur diesel and gasoil each month, with up to 0.8 million tons coming from Tuapse and Taman, as reported by LSEG data.