US Weighs Returning Sanctioned Tankers to Global Trade

Washington is evaluating a proposal to permit the sale of vessels currently under sanctions, including ships associated with Russia, to compliant operators. The plan involves subsequently lifting restrictions on these assets to reintegrate them into global commercial traffic. Sources familiar with the matter indicated that the Donald Trump administration is exploring this avenue amid challenges in containing the sharp rise in diesel prices.

Strategic Goals and Market Impact

The potential measure aims to boost capacity for transporting crude oil and refined fuels while reducing freight rates that contribute to higher fuel costs. Under the proposed framework, sanctioned ships would first be sold to legal entities before their penalties are removed, allowing unrestricted operations.

However, industry experts have cast doubt on whether easing tanker sanctions would significantly lower fuel prices. Energy Aspects, a consulting firm, noted that between 13% and 19% of the world’s oil tankers are subject to US sanctions. The firm warned that the advanced age and poor condition of these vessels could limit any benefits from deregulation.

Energy Aspects stated that unlifting sanctions on older ships likely lacking adequate maintenance would not result in an immediate or substantial increase in the main commercial tanker fleet's capacity. Most sanctioned tankers, primarily due to links with Russia or Venezuela, continued trading activities over the past three months.

Analyst Skepticism on Crisis Resolution

Claver, a research group, predicted the move would have negligible impact on the current tanker crisis. The group attributed rising fuel prices mainly to escalating war risks in the Middle East rather than solely to vessel shortages.

Last week, Trump announced a temporary suspension of sanctions on Russian diesel. This decision drew criticism from European allies and a bipartisan group of US senators, who described the step as "a gift to our adversary and a betrayal of our allies."

International Reactions and Policy Shifts

On Wednesday, Italian Prime Minister Giorgia Meloni criticized Trump’s plan to purchase diesel from Russia, labeling it an "extremely risky option." She argued that such purchases undermine international pressure on Russian President Vladimir Putin to end the war in Ukraine.

The US Treasury Department subsequently issued a license permitting the sale, transport, and delivery of Russian-origin diesel products until April 7, 2027. American media outlets reported that Russian petroleum products could arrive in the United States within two weeks.