Trump administration considers easing sanctions on shadow fleet tankers to cut shipping costs - Reuters
The Trump administration is considering easing sanctions on shadow fleet oil tankers previously used to transport Russian, Iranian and Venezuelan petroleum in an effort to reduce record-high shipping costs, Reuters reported on October 15, citing a US official.
The proposal would allow sanctioned vessels to carry oil and petroleum products that are not subject to US sanctions, while restrictions on Russian and Iranian oil would remain in place.
Companies seeking to use the vessels would have to apply for authorization from the US Treasury Department.
The administration hopes the measure would increase oil shipments from the Persian Gulf and help ease soaring tanker freight rates.
However, research firm Energy Aspects said relaxing the restrictions would be unlikely to significantly reduce shipping costs, as many sanctioned tankers have continued operating despite the measures.
Maritime industry sources also noted that European Union and British restrictions would continue to apply to ship insurers.
The discussions follow Trump's decision last week to temporarily lift sanctions on Russian diesel, a move criticized by Ukrainian President Volodymyr Zelenskyy, European governments and some Republican US senators.
High energy prices have become a political concern for Trump ahead of the November 3 midterm elections, when Republicans will seek to retain control of Congress.
The US Department of Energy said any easing of restrictions on shadow fleet vessels would not help Russia transport its oil or petroleum products. The White House did not immediately respond to Reuters' request for comment.
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