This is CBS I on the World with John Bachelor.

Here's John Bachelor.

Join by Michael Bernstom of the Hoover Institution, my guide on sanctions two and a half years later on Russia, especially its energy business.

Michael, a very good evening to you. Early on we learned of

the Shadow Fleet, it sounded mysterious like out of a Batman comic book. It's

changed to guide me to understand many people are involved in the

Shadow Fleet. It's called the flag of convenience. Who is it? Who is gaining from

this and how do they gain? How do you become a nation that sponsors a flag of convenience and where are they?

Good evening, Michael.

Well, to you, let's look at the big picture under the sanctions Russia is not allowed to sell oil above $60 per

barrel and lots of countries, European countries, Western countries, they impose the sanctions and they follow them and they enforce them.

But China and India now buying Russian oil, there are two major buyers above $60.

And Russia sells close to 4 million barrels a day to China and India,

about half and half, close to a million barrels.

And this oil is mostly now seaboard.

Only one major pipeline goes from Siberia to China, that's about 800,000 barrels a day.

So it needs a new fleet.

There is a huge substitution of seaboran oil for pipeline oil.

And this fleet, the Russia purchased hundreds of tankers used decommissioned

tankers around the world. That's how the Shadow Fleet came to being.

But to go through the seas, through the oceans,

it needs flags.

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