The administration of US President Donald Trump is discussing easing sanctions against part of the so-called “shadow fleet“, Reuters reported, citing a US official. The aim is to increase the number of available tankers and lower rates for transporting oil by sea.
The measure under discussion envisages that ships that were previously sanctioned will be granted permission to transport “legal oil“. This definition includes crude oil and oil products that are not subject to US sanctions. Russian and Iranian oil, which are subject to Washington’s restrictions, will not be included.
Companies that want to use sanctioned ships will have to apply for special permission from the US Treasury Department. Washington sees the possibility as a way to increase shipments from the Persian Gulf, where tensions and limited shipping capacity keep shipping costs high.
Limited market impact
The US Department of Energy said that any easing of sanctions would not help Russia transport oil or petroleum products.
Maritime industry sources estimate that the change could free up a small number of additional tankers for routes through the Strait of Hormuz. However, they say this is unlikely to lead to a general reduction in rates, as insurers will still have to comply with EU and UK rules.
This means that even with US permission, ships may still be constrained by other regulatory and insurance requirements. The impact on the global maritime transport market is therefore likely to be partial, rather than immediate and universal.
Washington has already made exceptions
In the spring, the US removed some shipments of Russian oil and oil products from the sanctions regime. At the time, Kremlin spokesman Dmitry Peskov said: “Without significant volumes of Russian oil, market stabilization is impossible.“
The new relaxation under discussion is more narrowly formulated and is aimed at cargoes that do not fall under US sanctions. There is currently no indication that Washington has made a final decision or issued a general authorization for the use of sanctioned tankers.