US Considers Lifting Sanctions on Russian Shadow Fleet Vessels
The US administration is exploring the possibility of lifting sanctions on vessels belonging to the so-called shadow fleet that have been transporting oil from Russia and Iran, in an effort to bring down record-high global shipping rates.
According to a source cited by Reuters, the main aim of such measures is to increase exports of oil and petroleum products from the Persian Gulf. The proposal would allow companies wishing to use these tankers to obtain individual licences from the US Department of the Treasury.
The move comes as the surge in freight rates has significantly reduced demand for US crude oil, according to US Energy Secretary Chris Wright, who confirmed in a video address to the World Petroleum Congress in Riyadh that the administration is considering easing restrictions on the shadow fleet. However, the US Department of Energy clarified that any move to ease sanctions would not help Russia transport oil or petroleum products.
Analysts Skeptical About Impact
Analysts at Energy Aspects are sceptical about the potential impact of such a move. They note that shadow fleet tankers are old and technically worn out, and would add little new capacity, as most have already been transporting oil continuously over the past three months. Experts suggest that easing the restrictions “could make a small number of additional tankers available for certain [Strait of] Hormuz shuttle runs”.
Maritime Industry Representatives Unconvinced
Maritime industry representatives stress that US measures are unlikely to lead to a significant reduction in freight rates, as ship insurers would still have to comply with EU and UK rules. The proposal has sparked concerns among experts who believe it may not address the root causes of the shipping crisis.
As the debate continues, it remains to be seen whether the US administration will indeed lift sanctions on Russian shadow fleet vessels, and what impact this move would have on global oil markets.
Original Article: US considers lifting sanctions on Russian shadow fleet vessels – Reuters — Ukrainska Pravda