U.S. energy secretary: Washington is converting shadow fleet tankers to “legal” status

The Donald Trump administration is allowing the sale of sanctioned oil tankers so they can legally transport crude oil. U.S. Energy Secretary Chris Wright made the announcement at a Citadel Securities event in New York.

Bloomberg reports this.

According to Wright, the U.S. government is working with investors who purchase idle sanctioned tankers, bring them back into working condition, and use them to transport oil that is not subject to sanctions.

“We are going to move some vessels from what I call the ‘bad guys’ fleet’ to the ‘good guys’ fleet.’ They will no longer be carrying sanctioned oil,” the secretary said.

Wright added that the administration is carrying out a special procedure designed to give the vessels legal status, but rejected the suggestion that the U.S. is simply lifting sanctions on tankers that had been carrying crude oil from Russia and Iran.

“We are moving vessels from the shadow fleet into the legal category. There is no talk of lifting sanctions,” he stressed.

By Wright’s estimates, the global shadow fleet numbers around 1,600 vessels. The administration’s efforts to convert them to legal status could ultimately add dozens or even hundreds of tankers to the legitimate merchant fleet.

Wright’s statement was the first detailed public explanation from the Trump administration regarding the use of sanctioned tankers. The authorities are seeking to increase the number of vessels available for transporting crude oil and to boost supply volumes that have declined due to the conflict with Iran and the closure of the Strait of Hormuz. The measures come amid American concerns about rising fuel prices just weeks before the midterm elections.

Earlier, media reported that the U.S. was considering lifting sanctions on Russia’s shadow fleet. Meanwhile, Western countries continue to detain shadow fleet vessels — France, in particular, has been doing so.