Reuters: US considering easing sanctions against ‘shadow fleet’

The administration of US President Donald Trump is considering easing sanctions against some of the “shadow fleet” vessels to increase available tonnage and reduce record tanker freight rates.

This is reported by Reuters, citing a US official.

This is about the possibility of allowing the transportation of so-called “legal oil” – crude oil and oil products that are not themselves subject to US sanctions – on previously sanctioned tankers.

At the same time, the easing should not apply to the transportation of Russian or Iranian oil, which is subject to US restrictions, a Reuters source said.

The goal of the potential solution is to increase the volume of oil and oil products that can be exported from the Persian Gulf region.

US Energy Secretary Chris Wright also said this week that the administration is discussing easing sanctions against the “shadow fleet” vessels to reduce record freight rates. Their growth has made American oil less competitive for Asian refiners.

Companies that want to use sanctioned vessels must obtain the appropriate permission from the US Treasury Department.

At the same time, analysts at Energy Aspects believe that such a move is unlikely to significantly reduce freight rates. A significant part of the tankers that were sanctioned due to ties to Russia or Venezuela have continued to operate in recent months.

The easing of restrictions may add only a small number of ships for individual voyages through the Strait of Hormuz.

Reuters sources in the maritime industry also note that a large-scale reduction in rates may not occur because ship insurers will still have to comply with EU and UK restrictions.

The discussion comes a few days after the US temporarily eased sanctions on Russian diesel fuel. The decision has drawn criticism from Ukraine, a number of European states and some US lawmakers.