US Considers Easing Sanctions on 'Shadow Fleet' Vessels

The US administration is considering easing sanctions on so-called shadow fleet vessels that carry oil and oil products from Russia, Iran, Venezuela and other countries. The aim is to significantly reduce global freight rates, which have reached record highs. Reuters reports this, citing an informed source.

According to a US official, the negotiations concern the possibility of the United States allowing previously sanctioned vessels to transport "legal oil". This refers to oil and oil products that are not subject to Washington's sanctions. It does not apply to Russian and Iranian oil, against which restrictive measures have been imposed.

According to the official, the goal of the step is to ensure more oil products and crude oil can be exported from the Persian Gulf. Companies that want to use sanctioned vessels must apply to the US Treasury Department.

According to Reuters, high oil and fuel prices pose a risk for Donald Trump ahead of the midterm elections on November 3. Republicans hope to retain control of both chambers of Congress after these elections. Trump suspended sanctions on Russian diesel until April 7.