Dubai Firm to Scrap Sanctioned Oil Tankers

GMS, a Dubai-based company specializing in the purchase and recycling of vessels, has received permission from the US government to scrap two seized oil tankers that were subject to US sanctions. The vessels are the Marinera, formerly Bella-1, and the Galileo, formerly Veronica, which US authorities seized in January as part of measures targeting the export of Venezuelan oil.

The decision follows US clearance earlier this year for GMS to scrap four container ships subject to Iran-related sanctions.

GMS Operations Director Yogesh Rehani said the company worked directly with the US government on the transaction and did not provide any funds to the previously sanctioned owner. The vessels are set to be safely recycled at regulated shipyards in Asia.

Rehani said keeping seized vessels in government custody indefinitely creates costs and operational risks, with taxpayers ultimately bearing the financial burden.

The use of the so-called shadow fleet – hundreds of unregulated tankers that often lack adequate oversight, insurance and safety checks while transporting Iranian or Russian oil – has surged in recent years. Shipping industry representatives have therefore long called for these vessels to be scrapped more quickly to permanently prevent them from returning to illegal trade.

(Reuters, Max)