US Reviews Easing Sanctions on Shadow Fleet to Curb Rising Shipping Costs

US Considers Easing Shadow Fleet Sanctions

According to Jordan News, a US official said on Wednesday that the administration of President Donald Trump is considering easing sanctions on vessels belonging to the so-called “shadow fleet” that transport oil and petroleum products from countries including Russia, Iran and Venezuela, in an effort to reduce sharply higher global shipping costs.

Context of Recent Diesel Fuel Decision

The discussions follow Trump’s decision days earlier to suspend sanctions on Russian diesel fuel, a step that drew criticism from Ukrainian President Volodymyr Zelenskiy, European countries and Republican members of the US Senate.

Zelenskiy and the senators labelled the move a gift to Russian President Vladimir Putin, saying it could give Moscow extra funds to sustain its war in Ukraine.

Focus on Legitimate Oil and Gulf Shipments

The official clarified that the talks centre on possibly allowing “legitimate oil” to be carried on vessels that were previously sanctioned, meaning shipments of crude oil and petroleum products not covered by US sanctions, rather than the sanctioned Russian and Iranian oil.

He added that the aim is to boost the volume of crude oil and refined petroleum products moved from the Gulf region.

What the Shadow Fleet Entails

The term “shadow fleet” describes ships and oil tankers employed by countries under international sanctions — notably Russia and Iran — to move oil and petroleum products by altering flags and hiding ownership, with the goal of bypassing export restrictions.

Source: Reuters.