According to Splash247, the US has begun disposing of ageing tankers seized during its widening campaign against sanctions-busting oil trades, channelling vessels linked to shadow networks serving Russia, Iran and Venezuela towards demolition rather than allowing them back into circulation. The move represents the next stage of Washington's increasingly physical approach to sanctions enforcement.
Scrapping becomes a sanctions tool
US military and Coast Guard forces seized seven Venezuela-linked ships in international waters during the opening weeks of this year, Splash247 reported. One of the seized vessels was the Russian-flagged Marinera, formerly Bella 1, taken after what the outlet described as an extraordinary pursuit across the Atlantic. Sending such hulls to scrap yards takes them out of the market permanently, rather than leaving them in detention or releasing them to trade again.
GMS wins first demolition licences
Ship recycling giant GMS, headquartered in Dubai, approached Washington seeking licences to acquire seized ships for demolition, according to Splash247. The cash buyer argued that scrapping offered governments a practical way of permanently removing old shadow tonnage while reducing the environmental threat posed by uninsured and poorly maintained vessels.
According to GMS, scrapping gives governments a practical way to permanently remove old shadow tonnage while reducing the environmental threat from uninsured, poorly maintained vessels.
In May, the US Treasury granted GMS licences to purchase and recycle four separately sanctioned ships, the first approvals of their kind and an important precedent for dealing with the rapidly expanding pool of blacklisted tonnage, Splash247 reported.
Seizure costs can exceed scrap values
Washington has also discovered just how expensive vessel seizures can become. Splash247 reported that the US spent much more maintaining the 2005-built VLCC Skipper, seized last December, than its scrap value. That cost gap underscores why demolition can be a more practical end for ageing shadow tonnage than indefinite maintenance while cases proceed.
| Vessel | Status | Key detail |
|---|---|---|
| Marinera (ex-Bella 1) | Seized | Russian-flagged tanker taken after Atlantic pursuit |
| Skipper | Seized in December | 2005-built VLCC; maintenance cost exceeded scrap value |
What the disposal push means for operators
For recyclers, shipowners and charterers, the programme directly shrinks the pool of ageing tankers available for shadow trades, because seized hulls are being sent to demolition rather than back into circulation. GMS estimates it could remove more than 100 shadow ships annually if a workable licensing regime develops, according to Splash247. For the recycling sector, that estimate suggests a potential pipeline of demolition candidates among the expanding pool of blacklisted tonnage; for shippers and forwarders, the removals reduce the supply of vessels that have been used to move sanctioned oil from Russia, Iran and Venezuela.
Watch list
- Whether the US Treasury extends the licensing regime beyond the four vessels approved in May, building on what Splash247 called the first approvals of their kind.
- Further interdictions by US military and Coast Guard forces, following the seven Venezuela-linked ships seized in the opening weeks of this year.
- GMS's estimate that it could remove more than 100 shadow ships annually if a workable licensing regime develops.
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