US Sells Two Seized Russian-Linked Oil Tankers for Scrap in India
The US government has sold two sanctioned oil tankers seized earlier this year for scrapping in India, Lloyd’s List reported, according to Reuters on August 11.
US Government Sells Sanctioned Tankers for Scrapping
The US government has sold the two tankers, the Era—formerly Marinera and Bella 1—and the Lileo, previously known as Galileo and Veronica, to Dubai-based ship recycling firm Global Marketing Systems (GMS) for scrapping in India. The deal’s value was not disclosed.
Background on Seized Tankers
The Russian-flagged Era was seized by the US Coast Guard and military special forces in January after a weeks-long pursuit across the Atlantic, with the operation taking place south of Iceland. The tanker had previously evaded a US blockade in the Caribbean intended to curb Venezuelan oil exports. The United States also seized the Russian-flagged tanker now operating as Lileo in the Caribbean Sea in January. The vessel had been targeted by US sanctions over its links to Russia.
Global Marketing Systems Acquires Tankers
GMS CEO Anil Sharma told Lloyd’s List that the US government sold the tankers to his company, with a court order authorizing the sales. However, there were complexities surrounding the deal, including the fact that GMS was not initially aware of the previous owners of the vessels.
Russian Response to Seizures
Russian leader Vladimir Putin instructed the country’s Navy leadership to respond “decisively” to Western attempts to seize Russian oil and gas tankers, comparing such actions to maritime piracy. During a meeting with commanders of Russia‘s Pacific, Northern, Baltic, and Black Sea fleets, as well as the Caspian Flotilla, Putin called on military officials to protect Russian maritime operations from attempts to intercept its vessels.
Impact on Global Oil Market
The development comes as Russian-flagged tankers often change their names to avoid detection and sanctions enforcement. In total, the US seized up to 10 oil tankers following its military operation in Venezuela. The sale of these two tankers is a significant step towards dismantling Russia‘s shadow fleet, which has been a major concern for global oil markets.
Original Article: US Sells Two Seized Russian-Linked Oil Tankers for Scrap in India — United24Media