US Considers Licensing Sanctioned Vessels for Non-Prohibited Cargoes
The administration of US President Donald Trump is considering allowing tankers subject to sanctions and linked to Russia, Iran, and Venezuela to transport cargo not prohibited by US sanctions, subject to specific approval by the US Treasury Department. This development was reported by Reuters on October 15.
This proposal aims to increase the number of available vessels and ease the pressure on freight rates. The high sea freight rates are hampering international trade in energy commodities, according to Reuters, citing research firm Energy Aspects. The US administration’s reasoning is that additional available vessels could increase the supply of tankers on the market and bring down transport costs.
Mechanism for Sanctioned Vessels
According to Reuters, shipping companies would need to obtain approval from the US Department of the Treasury for such transactions. No new general licence or final rules regarding this mechanism have been publicly announced. The proposal concerns vessels that have been linked to the transport of Russian, Iranian, and Venezuelan oil.
Easing Pressure on Freight Market
The discussions in Washington are linked to high sea freight rates, which are hampering international trade in energy commodities. The US administration’s reasoning is that additional available vessels could increase the supply of tankers on the market and bring down transport costs.
Financial Times Reports on Russian Assets
The Financial Times reported that representatives from the US have reportedly proposed to its European partners that they partially unfreeze Russia’s sovereign assets and transfer them to a financial mechanism under Washington’s control. This model was seen as one way of attempting to resume peace talks on Ukraine. The idea was presented by the US President’s special envoy Steve Witkoff and Jared Kushner during negotiations in Miami last week, but European delegates rejected it.
Russian Federation’s Assets Remain Frozen
Following Russia’s full-scale invasion of Ukraine in 2022, in the jurisdictions of the countries G7, the EU, and Australia have frozen around €260 billion of the Russian Central Bank’s assets. According to the Council of the EU, more than two-thirds of this amount is held within the European Union. The EU is already channelling the proceeds from these assets – rather than the principal amount – towards supporting Ukraine. As of October 14, the Council of the EU had reported €3.8 billion in such support; the European Council had previously stated that it would continue to channel these funds towards supporting Ukraine.
Original Article: A new mechanism for vessels subject to sanctions is being discussed in the US — Ukrmedia