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U.S. sells two seized sanctioned tankers to Dubai recycler for scrap

The United States transferred ownership of two Russian-flagged oil tankers seized after the Venezuela operation to Global Marketing Systems, which will dismantle them in India.

In the wake of the U.S. raid on Venezuela, the Coast Guard and military special forces seized two Russian-flagged oil tankers, the Era and the Lileo, in January. Both ships had been subject to U.S. sanctions for transporting oil linked to Venezuela and Iran, and for ties to Russia. The U.S. government later issued a court-approved order allowing their sale to Global Marketing Systems, a vessel-recycling company headquartered in Dubai.

The firm purchased the tankers last month for a sum that was not disclosed and will scrap them at facilities in India. CEO Anil Sharma said the transaction was complex, partly because the previous owners were unclear. The sale marks the final step in disposing of the assets seized after the Venezuelan operation.

Why it matters

It shows how the U.S. enforces sanctions by disposing of seized assets and involves international ship-recycling markets.

In this story

sanctioned oil tankersU.S. seizureVenezuela raidship recyclingcourt orderEraLileoGlobal Marketing SystemsIndia scrap yards