Trump Administration Reviewing Sanctions Relief for 'Shadow Fleet' Tankers; Vessels Carried Oil from Russia, Iran and Venezuela, Among Others / Aim is to Lower Sea Freight Rates / In Effect, Washington Allows 'Permitted Oil' to Be Shipped on Vessels Previously Under Sanctions; Russian and Iranian Oil, Subject to Punitive Measures, Are Not Covered by This Move

A US official said Wednesday that the Donald Trump administration is reviewing easing sanctions imposed on so-called 'shadow fleet' vessels that have carried oil and petroleum products from countries including Russia, Iran and Venezuela. The aim of this move is to reduce global sea freight rates, which have reached unprecedented records.

Reuters wrote: A US official said on Wednesday that the Donald Trump administration is considering reducing the sanctions imposed on the so-called "Shadow Fleet" ships; Ships that have transported oil and oil products from countries including Russia, Iran and Venezuela. The purpose of this action is to reduce the rates of sea transportation in the world, which have reached unprecedented records.

According to the selection report, these negotiations take place a few days after the President of the United States, Donald Trump, temporarily canceled the sanctions related to Russian diesel fuel; An action that faced a wave of criticism from Volodymyr Zelensky, the president of Ukraine, European countries and some of Trump's Republican allies in the US Senate.

Zelensky and US senators described the move as a gift to Russian President Vladimir Putin that would provide Moscow with the revenue it needs to continue financing Russia's war in Ukraine.

The U.S. official said the new talks focused on the U.S. possibly allowing "sanctioned oil" to be transported using ships that had previously been sanctioned. This term refers to crude oil or oil products that Washington has not sanctioned, not Russian and Iranian oil that are subject to punitive measures.

The official added that the goal is to export more refined petroleum products and crude oil from the Persian Gulf region.

US Energy Secretary Chris Wright said in a video message to the World Petroleum Congress in Riyadh this week that the US government is discussing easing sanctions on the shadow fleet. According to the "Energy Aspects" research institute, the aim of this measure is to reduce the unprecedented rates of sea transportation; Rates that have reduced demand for US crude oil.

Portions of the remarks were posted on social media, but Reuters was unable to obtain the full video or transcript. The US Department of Energy announced that these items were not available.

The American official said that the companies that intend to use the embargoed ships must submit an application to the US Treasury Department to obtain a license to use them.

The US Department of Energy announced that any action to reduce sanctions on the shadow fleet will not help Russia to transfer oil or oil products. In response to the questions, the Ministry of Treasury referred the reporters to the Ministry of Energy.

The Italian navy and the European Union's maritime mission have inspected a sanctioned tanker in the Mediterranean Sea that is part of Russia's "shadow fleet".

But Trump's attempt to quickly return Russian diesel to the world market may put pressure on the relevant ministries to allow the cargoes to be transported using these vessels.

The White House did not immediately respond to a request for comment.

The high price of oil and fuel is considered a danger for Trump in the mid-term elections on November 3; An election in which Republicans hope to maintain control of both houses of Congress. Trump has lifted sanctions on Russian diesel until April 7.

The freight rate of oil tankers has reached unprecedented records; Because the wars between Iran and Ukraine have fueled inflation and made it difficult for Asian refineries to access American crude oil. These conditions have forced refineries to look for alternative sources in the Middle East and Latin America.

In a note to its clients, the "Energy Aspects" institute announced that the easing of sanctions on the shadow fleet will not have a significant impact on sea freight rates, but it could enable the movement of more oil in the Middle East.

This institute wrote in its note: The lifting of sanctions on oil tankers, which are mostly old and not properly maintained, is unlikely to add significant capacity to the main shipping fleet in the short term; Especially since most of the tankers that have been sanctioned due to their links to Russia or Venezuela have been actively trading for the past three months.

The institute added that the easing of restrictions "may make a small number of additional tankers available for some round trips and oil transfers in the Strait of Hormuz"; A waterway between Iran and Oman.

Shipping industry sources said the repeal of the measures is unlikely to lead to a large drop in sea freight rates; Because ship insurance companies will still be required to comply with EU and UK regulations.