US considering easing sanctions on shadow fleet – Reuters

A US official, speaking on condition of anonymity, told Reuters, as reported by Ukrinform.

The discussions began several days after President Donald Trump temporarily suspended sanctions on Russian diesel fuel.

The current talks concern the possibility of allowing “legal oil” to be transported on vessels that were previously sanctioned, the US official said. This refers to oil and petroleum products not subject to US sanctions, rather than Russian or Iranian oil, which remains under US sanctions.

According to the official, the goal is to increase the volumes of oil and petroleum products shipped out of the Gulf.

According to the research firm Energy Aspects, US Energy Secretary Chris Wright said in a video address to participants of the World Petroleum Congress, which is taking place in Riyadh this week, that the administration is discussing the possibility of easing sanctions on “shadow fleet” vessels. He said this would help reduce high freight rates, which have led to lower demand for U.S. oil.

Companies wishing to use sanctioned vessels would have to submit a request to the US Treasury Department, the official said.

The US Department of Energy said that any potential easing of sanctions on the shadow fleet would not help Russia transport oil or petroleum products.

High oil and fuel prices pose a political risk for Trump ahead of the U.S. midterm elections scheduled for November 3. Republicans hope to retain control of both chambers of Congress.

At the same time, easing the restrictions is unlikely to quickly increase available shipping capacity in the mainstream tanker fleet. Most vessels sanctioned because of their links to Russia or Venezuela are relatively old and generally in poor technical condition.

In addition, lifting the sanctions is unlikely to significantly lower freight rates, as vessel insurers would still be required to comply with regulatory requirements in the EU and the United Kingdom, maritime industry representatives said.

As reported by Ukrinform, US President Donald Trump said that preparations were underway in Greenland to launch large-scale exploration for oil, gas and other mineral resources.

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