The Russian oil tanker becalmed in Greek waters for over a month has since changed its flag to an Iranian one – in what appears a move to duck Westsern sanctions on Moscow.

Russian Tanker Stuck in Greece Switches Flag ‘to Avoid Sanctions’

A Russian oil tanker close to Oslo, Norway. Illustrative photo: EPA-EFE/OLE BERG-RUSTEN

A Russian-flagged oil tanker stuck off the Greek island of Evia since April 8 has changed its flag, BIRN has found out, most likely to avoid EU and US sanctions on Moscow.

Claire Jungman, Chief of Staff of the US advocacy group United Against Nuclear Iran, UANI, told BIRN that the Lana “is now flying an Iranian flag while anchored in Greek waters”.

Many Russian vessels have changed flags lately to conceal their ties to Moscow and avoid being sanctioned, Bloomberg has reported.

Miltiadis Sarigiannidis, Associate Law Professor at the Aristotle University of Thessaloniki, northern Greece, told BIRN: “Changing the Russian flag for an Iranian one may be a Russian manoeuver to facilitate Russians exports”.

The vessel is not impounded by Greece and is stuck off Evia because of mechanical problems; A source with knowledge about the case told BIRN on Tuesday under condition of anonymity that the Lana has no fuel and the cargo will have to be transferred to another ship. This will not be easy as the cargo is Iranian crude oil.

Greek authorities detected the ship on April 8. Under EU sanctions against Russia, it was seized, but then released, as its new owner, TransMorFlot LLC, a Russian maritime shipping company, was not included on the EU sanctions list.

However, the US State Department on May 8 imposed new sanctions and targeted eight Russian maritime-related companies, including TransMorFlot LLC, owner of the Lana. The 16 vessels in which TransMorFlot LLC has an interest are therefore blocked as a result of this action, the State Department has said.

“The sanctions imposed by the US on the Russian shipping company do not apply in Greece,” a lawyer dealing with maritime law told BIRN. “However, sanctions are indirectly imposed,” he added.

Companies providing services to the vessel, including shipping insurance companies covering liabilities including fuel leaks, shipwrecks and personal injuries, have in these complex circumstances decided to stop trading with the ship, to avoid to be included in the US black list. As a result, the ship can do nothing, the same lawyer told BIRN.

Under Donald Trump’s administration, the US in 2018 reimposed sanctions on Iranian oil sales.

The EU, unlike the US, has not imposed sanctions on Iranian oil. However, no European shipping company dares to transfer Iranian crude oil, nor will any refinery in Europe process it, and no international bank wants to handle the payment, media have reported.

A court ruling in the US is pending, which will help determine the ship’s fate, BIRN has found out.

Greek media outlet Kathimerini reported that the US asked Greek judicial authorities to order seizure of the cargo and an investigation. As a result, the case is before the Greek prosecutor’s office.

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