CRS Report Analyzes Oil Transport Sanctions Risks
A new report this week from the Congressional Research Service outlines U.S. sanctions risks stemming from the global oil tanker market, including from tankers moving sanctioned oil from Russia, Iran and Venezuela.
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The 20-page report said ships that are transporting sanctioned oil are “essentially creating a second, parallel global shipping network” because many operate with their automatic identification system transponders turned off to avoid detection. Some of those ships move oil as part of a shadow fleet, the report noted -- a fleet of tankers that operate without insurance or oversight.
“It is uncertain what the long-term ramifications of this development might be,” CRS said.
The report also analyzes how firms are trying to track secondhand oil sales, the challenges that come with trying to identify tanker owners and operators, and measures the U.S. has taken against vessels and ship companies violating the price cap on Russian oil. Most recently, the Treasury Department in February sanctioned a Russian state-owned shipping company along with 14 of its crude oil tankers for being part of a shadow fleet (see 2402230078).