Russian shadow fleet tankers may be exempted from US sanctions, Reuters reports
Photo: The US may ease sanctions on shadow fleet tankers (Getty Images)
US President Donald Trump's administration is considering easing sanctions on shadow fleet tankers that have transported oil from Russia, Iran, and Venezuela. Washington hopes to bring record-high freight rates down, Reuters reports.
What Washington is proposing
The idea is to allow sanctioned vessels to transport "legal oil." This means crude oil and petroleum products that are not subject to US sanctions, rather than Russian or Iranian oil.
Companies that want to charter these tankers would have to apply to the US Treasury Department. The main goal is to get more oil and fuel out of the Persian Gulf region.
US Energy Secretary Chris Wright also discussed these plans in a video address to the World Petroleum Congress in Riyadh.
Could this help Russia?
The US Department of Energy insists that easing sanctions would not help Russia sell oil or petroleum products.
However, according to Reuters, Trump wants to get Russian diesel fuel onto the global market more quickly. This could prompt government agencies to authorize its transportation on these very vessels.
Earlier, the US Treasury Department issued a temporary license that opened the market to Russian diesel fuel. Sanctions on the fuel have been lifted until April 7, 2027, allowing Russia to supply millions of tons of fuel to the US and the global market.
By the end of the year, Moscow expects to increase exports to 3–3.5 million tons per month. This would allow Russia not only to return to pre-crisis export levels but also to exceed its previously announced targets.
Trump himself attributes rising diesel prices not to the war in the Middle East but to Ukraine's strikes on oil refineries. In recent weeks, he has repeatedly urged Kyiv to stop attacking Russian infrastructure, claiming that these strikes are causing a global fuel shortage.
In Ukraine, the diesel fuel deal is considered unfair and compared to last year's summit in Alaska. Ukraine would support easing sanctions on Russia only in exchange for an energy truce. Without such an agreement, strikes on Russian oil refineries will continue, according to a source cited by RBC-Ukraine.
Trump's attempt to bring fuel prices down ahead of the elections through a deal with Moscow ultimately plays into the Kremlin's hands.
