The Daily Journal.- The U.S. government is considering easing sanctions on vessels belonging to the so-called “ghost fleet” or “shadow fleet,” which have transported oil and petroleum products from Russia, Iran, and Venezuela, in an effort to reduce global shipping rates.
President Donald Trump’s administration aims to reduce distribution disruptions caused by record-high maritime freight rates, according to a U.S. official.
Discussions focus on potentially allowing previously sanctioned vessels to transport “legal oil.” This refers to crude oil or petroleum products that do not fall under Washington’s sanctions, unlike Russian and Iranian oil, which remain subject to punitive measures.
The initiative also seeks to facilitate additional exports of refined petroleum products and crude oil from the Gulf. Companies interested in participating would need to apply to the U.S. Treasury Department.
Energy Secretary confirms discussions in Riyadh
U.S. Energy Secretary Chris Wright said this week in a video address to the World Petroleum Congress in Riyadh that the administration was discussing easing sanctions on vessels belonging to the “shadow fleet.”
The initiative comes just days after Trump temporarily lifted sanctions on Russian diesel, prompting criticism from Ukrainian President Volodymyr Zelensky, European countries, and Republican members of the U.S. Senate.
However, the Department of Energy stated that any measures would not help Russia transport oil. High fuel prices pose an electoral risk for Trump ahead of the November 3 elections.
With information from Reuters.
