This is CBS, I on the world. I'm John Bachelor joined by Michael Berenstam at 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. You guide me to understand. Many people are involved

in the Shadow Fleet. It's called the Flag of Convenience. 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 are now buying crushing oil oil there are two major buyers above $60 and Russia sells close to 4 million dollars a day to China and India, about half and half, close to me a million

bottles. 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 seabor 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.

It has to be registered somewhere.

It has to be legitimate.

And traditionally, the two countries which provided flags to lots of shipping industries to various countries for Panama,

and to somewhat lesser extent Liberia, about 1716% of the total damage. Two countries provided about one-third of the total

tonnage of shipping in the world. But those are under question from the United States and Western countries. So Russia found

lots of small countries which sell their rights, their flags, their name to Russia, and they don't even have offices and one of these countries is

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