The Panama Maritime Authority (PMA) has announced that it will cancel the registration of 68 Panamanian-flagged vessels.
This clarification comes in response to the recent reports regarding 68 Panamanian-flagged vessels listed in sanctions issued by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury.
The Panama Ship Registry has initiated the necessary procedures to cancel the registration of these vessels.
These actions are being carried out under the authority of Executive Decree No. 512, issued on October 18.
This legal framework allows the authority to revoke the registration of vessels, as well as individuals and registered owners, included on international sanction lists.
“The PMA reaffirms its unwavering commitment to protecting national interests. Through the General Directorate of Merchant Marine, it ensures transparent and rigorous management, taking decisive actions to prevent and address the improper use of the Panamanian flag,” the Panama Ship Registry said in a statement.
Last week, the United States took sweeping action to fulfill the G7 commitment to reduce Russian revenues from energy, including blocking two major Russian oil producers. They have also imposed sanctions on an unprecedented number of oil-carrying vessels, many of which are alleged to be part of the “shadow fleet.”
The US blocks 183 vessels, largely oil tankers as well as oil tankers owned by Russia-based fleet operators, the US Department of Treasury reported.
This broadening of the sanctions regime underscores the Biden administration’s commitment to diminishing Moscow’s ability to fund its “brutal and illegal war against Ukraine.”
The sweeping moves, taken just over a week before President Joe Biden leaves office, come as Russian President Vladimir Putin says he is ready for potential talks with President-elect Donald Trump.
Russia says it is open to dialogue although critics say that in reality its proposals amount to little more than a Ukrainian surrender.
Despite previous scepticism about the effectiveness of such measures, it is widely expressed from many analysts that the next administration would maintain and enforce the sanctions.
Furthermore, the UK, EU and the US will likely hold off on sanctions relief and maintain the freeze on Russian assets to keep the pressure on Mr. Putin, according to New York-based advisory, shipping & commodity brokerage Poten & Partners.
Friday’s announcement comes just few days before Biden is due to step down, and puts Trump in something of an awkward position given his stated desire to end the Ukraine war on day one of his presidency.
The outgoing administration billed the new sanctions as the most significant to date against Moscow’s oil and liquefied natural gas sectors, the driver of Russia’s economy.
In a move coordinated with Washington, the U.K. also slapped sanctions on two major Russian oil producers.
