The administration of US President Donald Trump is considering easing sanctions on shadow fleet tankers to lower shipping costs and increase oil supplies from the Persian Gulf, Reuters reported on Oct. 15, citing people familiar with the discussions.
The proposal would allow sanctioned vessels to transport “legitimate” fuel, excluding Russian and Iranian oil subject to sanctions, the sources said. Companies seeking to use the vessels would have to obtain authorization from the US Treasury Department.
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The move could make a small number of additional tankers available for short-haul trips through the Strait of Hormuz, but is unlikely to lead to a widespread drop in freight rates, maritime industry sources told Reuters. Insurers would still have to comply with European Union and UK regulations.
The US Energy Department said any easing of restrictions on the shadow fleet would not help Russia transport oil or petroleum products.
Trump lifts sanctions on Russian diesel, blames Zelensky for high prices
The latest proposal comes days after Trump lifted sanctions on Russian diesel exports following an agreement with Russian President Vladimir Putin to supply more than 300,000 metric tons of diesel to US and global markets.
The US Treasury Department authorized the sale and import of Russian diesel through April 7, 2027, according to Kyiv Post’s reporting.
Trump said lower fuel prices for Americans were his top priority ahead of the Nov. 3 midterm elections, when Republicans hope to retain control of both chambers of Congress.
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The US president has repeatedly blamed Ukrainian strikes on Russian oil refineries and other energy infrastructure for driving up fuel prices.
On Oct. 10, he called for Ukraine to replace President Volodymyr Zelensky, saying Kyiv needed a leader willing to reach a deal with Moscow.
“I suggest they get a new leader who can make a deal because he could have made many deals, but for some reason he never does,” Trump said.
Zelensky condemned the diesel agreement, arguing that easing sanctions would provide Moscow with additional revenue to continue its war against Ukraine.
“Gifts to Putin will not bring peace or any benefit to the civilized world,” Zelensky wrote on X on Oct. 9. “Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.”
In an interview with Axios, Zelensky described Trump’s decision to lift sanctions as “not fair and not honest,” adding that it looked like a “happy birthday present” for Putin.
The Ukrainian president also argued that any halt to Ukrainian strikes on Russian energy infrastructure should be reciprocal, with Moscow stopping its attacks on Ukraine’s energy facilities.
The diesel agreement drew criticism from US lawmakers, including some Republicans, who argued that allowing Russian fuel sales would undermine sanctions intended to restrict Moscow’s ability to finance its war against Ukraine.
Russia seeks relief from energy restrictions
The US also temporarily exempted some Russian oil and petroleum product shipments from sanctions in the spring amid the war in Iran and the closure of the Strait of Hormuz.
The Kremlin argued at the time that stabilizing global oil markets was impossible without significant volumes of Russian oil. Putin also warned that attempts to damage Russia’s oil fleet would create problems for everyone, particularly those seeking to harm Moscow.
The latest discussions on easing shadow fleet restrictions come as the Trump administration seeks to contain fuel prices amid disruptions to global energy supplies. However, any broader reduction in shipping costs could be limited by insurance restrictions and the continued enforcement of European and British sanctions.
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