US Weighs Relief for Sanctioned Shadow Fleet Tankers
The Trump administration is considering loosening sanctions on shadow fleet tankers that have transported oil from Russia, Iran, and Venezuela, a US official said on October 14, according to Reuters. This move comes just days after the administration freed Russian diesel from sanctions.
An industry research group expects this change to have little impact on freight rates. The talks center on allowing “legal oil” to be carried on previously sanctioned vessels, with only crude or fuel free of US sanctions qualifying. Washington wants more crude and refined products moving out of the Gulf, and companies would need US Treasury approval to use the ships.
Legal Oil on Blacklisted Ships
The US official emphasized that only “legal oil” would qualify for transportation on blacklisted ships, not Russian or Iranian oil. This move is seen as a way to increase the flow of crude and refined products out of the Gulf, while also addressing record-high freight rates.
Energy Aspects, an industry research group, expects this easing to have little impact on freight rates, since most tankers sanctioned over Russian or Venezuelan links have continued trading for the past three months. The Energy Department has stated that any relief would not help Russia ship its oil or refined products.
Pressure from Britain and Ukraine
Britain is pushing in the opposite direction, with UK Finance Minister John Healey urging counterparts at International Monetary Fund meetings in Bangkok on October 15 to maintain tough sanctions on Russia, including a tighter ban on shipping services that keep Putin’s shadow fleet operating. Ukrainian President Volodymyr Zelenskyy has criticized the US decision to license Russian-origin diesel trade until April 2027, calling it a “weak decision unworthy of Ukraine’s partners.”
Diesel License Criticism and Unconfirmed Ceasefire
The US Treasury issued a license clearing Russian-origin diesel trade until April 2027 on October 9. Ukrainian President Volodymyr Zelenskyy told reporters that this was a weak decision unworthy of Ukraine’s partners, while Democratic Senators Jeanne Shaheen, Chuck Schumer, and Elizabeth Warren called it a “total betrayal of Ukraine.” Republican Senator Thom Tillis said there is “a legitimate case for saying the president’s not following the law.”
Trump then pressed Kyiv to spare Russian refineries and declared an “energy ceasefire” on October 11. A White House official told Axios that this covers only oil refineries, while neither side has confirmed a similar announcement Trump made in mid-September.
Kremlin Response
Kremlin spokesperson Dmitry Peskov told reporters on October 13 that contacts on the ceasefire were continuing and referred further questions to Trump. He claimed the diesel deal was “a very mutually beneficial item of Russian-American cooperation” that serves the interests of Russia, the US, and world energy markets, according to Kommersant.
Original Article: US weighs relief for sanctioned shadow fleet tankers, days after freeing Russian diesel — Euromaidan Press