Legalizing Sanctioned Oil Tankers
The administration of former President Donald Trump has introduced a process aimed at legalizing oil tankers currently under sanctions, facilitating their transition out of the so-called shadow fleet. US Energy Secretary Chris Wright emphasized that this initiative does not involve lifting sanctions but simply changes the legal status of the vessels. The primary goal is to reduce global freight rates and increase the availability of American crude oil on international markets.
Overview of the Shadow Fleet
Currently, there are approximately 1,600 sanctioned tankers operating within the global shadow fleet, nearly 1,000 of which are Russian-owned. Russia’s shadow tanker fleet, which began forming in December 2022, now represents 17% of the world’s tanker capacity. In response, the US has imposed sanctions targeting entities involved in transporting Russian oil sold above the $60 per barrel price cap.
Chris Wright: 'We are turning "shadow" tankers into legitimate vessels. There is no lifting of sanctions.'
Since 2021, Russian shadow fleet vessels have been linked to at least nine oil spills worldwide, raising environmental concerns. On June 19, 2025, a coalition of European countries agreed to implement measures against Russia’s shadow fleet. Further regulatory action followed when President Trump, on October 20, 2026, signed an executive order suspending the enforcement of tariffs under the Graham Act—tariffs that could have impacted major purchasers of Russian oil.
This Trump-era policy adjustment has the potential to significantly influence global energy markets and crude oil prices by increasing the volume of legally accessible oil. Nevertheless, it maintains existing sanctions, underscoring continued pressure on Russia due to its aggressive activities in the energy sector. Given the environmental risks highlighted by recent oil spills, this development may also prompt new discussions on stricter regulations governing the transportation of energy resources.
This move comes in the context of broader efforts to manage energy costs in the US, especially as tariff adjustments have been made to alleviate rising diesel prices. By legalizing these sanctioned vessels, the administration aims not only to boost oil supply but also to stabilize market prices amid ongoing geopolitical tensions.