Dubai-based GMS has won US Government approval to scrap two sanctions-hit oil tankers it acquired, months after securing agreements to recycle four sanctions-hit container ships, the ship recycler told Reuters.
The use of so-called shadow fleet tankers has surged in recent years, with hundreds of tankers transporting Iranian or Russian oil with limited scrutiny, insurance or safety checks.
Major shipowners have called for faster scrapping of such vessels, warning they pose significant environmental and safety risks.
“Destined for responsible recycling”
GMS, which buys ships and recycles them at regulated yards, mainly in Asia, received US licences on August 8 for two tankers, Yogesh Rehani, GMS’ director of operations, said.
“GMS transacted with the US Government, and no payment was made by GMS to the previous sanctioned owners. The vessels are now destined for responsible recycling,” Rehani said, without providing details on the price paid.
“A seized tanker cannot simply remain in government custody indefinitely without cost or operational risk. It not only increases the costs but it also reduces the value each day in delaying disposal and it all falls on the shoulders of taxpayers.”
The US is, “committed to responsible solutions to get sanctioned vessels off the water”, a US Treasury spokesperson said, adding that such cases are assessed individually.
The two tankers are the Marinera and the Galileo, GMS said.
The US seized the Russian-flagged Marinera, formerly known as Bella-1, in January 2026 as part of efforts at the time to curb Venezuelan oil exports.
The Galileo, previously called Veronica, was also seized in January as part of US action against Venezuela.
“Seizing a vessel deals with the immediate enforcement issue, but the physical ship still has to be managed. It requires security, crewing, maintenance, marine services and ultimately a final destination,” Rehani said.
“GMS’s role is simply to execute that disposal responsibly where the US authorities determine that recycling is the appropriate way to get defaulters out of the system and prevent their re-entry in nefarious trade.”
Earlier this year GMS told Reuters it had won US approval to scrap four container ships subject to Iran-related sanctions.
Republished from Baird Maritime.
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