US weighs easing sanctions on Russian 'shadow fleet' tankers, Reuters reports

The Trump administration is studying whether to lift sanctions on tankers in Russia's so-called shadow fleet, which have carried oil from Russia and Iran, an unnamed US official told Reuters, according to Ukrainska Pravda and Rzeczpospolita. The discussions focus on letting sanctioned tankers carry only oil not covered by US sanctions, rather than Russian or Iranian crude under sanctions.

The goal is to increase oil and fuel exports from the Gulf region, where the Strait of Hormuz remains only partly open, the official said. Companies wanting to use such tankers would need individual licences from the US Treasury Department if the change goes ahead, Reuters reported.

US Energy Secretary Chris Wright told the World Petroleum Congress in Riyadh that the administration was discussing easing the restrictions, saying the surge in shipping rates had hit demand for American crude oil. The US Department of Energy said any easing of shadow-fleet sanctions would not help Russia transport oil or oil products.

Analysts at Energy Aspects were sceptical of the move's effect, Ukrainska Pravda and Musavat reported, saying the shadow-fleet vessels are old and technically worn and have mostly been in continuous use already, so freeing them up would add little capacity. Shipping industry figures also said the change was unlikely to significantly cut freight rates, since vessel insurers must still follow EU and UK rules.