At senators’ urging, the Panama Maritime Authority opened investigation into “ghost fleet” transporting Iranian oil in violation of U.S. sanctions
Since then, Panama has removed at least 32 vessels suspected of transporting Iranian oil
Investigation enforces U.S.-imposed sanctions on Iranian oil; Iran funds terrorist groups like Hezbollah and Hamas with oil revenue
Now, senators are calling for greater transparency to help eradicate the ghost fleet across major shipping states
Washington, D.C. - Today, U.S. Senators Bob Casey (D-PA) and Marco Rubio (R-FL) led a bipartisan group of their colleagues to urge the President of Panama to close a critical information-sharing gap in the country’s efforts to prevent Iran from transporting oil, in violation of U.S. sanctions, under the Panamanian flag. The U.S. imposed sanctions on Iranian oil in 2018 and 2019 to cut off a significant source of revenue it uses to fund terrorist organizations like Hezbollah and Hamas, cartel activity, nuclear proliferation, and other nefarious activity in the Middle East and the Western Hemisphere. At Casey and Rubio’s urging, the Panama Maritime Authority (AMP) made progress by opening investigations earlier this year into all ships suspected of transporting Iranian oil and has since removed at least 32 vessels from its registry.
“This additional step will help put a stop to Iran’s ghost fleet, which has allowed it to export hundreds of millions of barrels of Iranian oil in recent years and which ultimately funds the regime’s continued human rights violations, proxy forces, and nuclear proliferation program. Iran consistently works in opposition to peace, stability, democracy, and shared American values and interests across the Middle East,” the Senators wrote.
Using open-source data, the nonprofit United Against Nuclear Iran (UANI) identified 383 suspected “ghost fleet” vessels, including 189 Panamanian-flagged vessels (49% of all vessels) as of January 2024. Since Senators Casey and Rubio pushed Panama to investigate and de-flag vessels of concern based on UANI’s notifications, the AMP has removed more than 32 ships. Greater information-sharing from Panama about ships that requested their own cancellation would further help to reduce the number of vessels transporting Iranian oil, which would limit Iran’s revenue. Senator Rubio introduced and Senator Casey cosponsored the Stop Harboring Iranian Petroleum Act, which will impose sanctions on Iranian oil purchases, after passing as part of the recent national security supplemental package.
In addition to Casey and Rubio, the letter was signed by U.S. Senators John Fetterman (D-PA), Angus King (I-ME), Catherine Cortez Masto (D-NV), Jacky Rosen (D-NV), Maggie Hassan (D-NH), Chuck Grassley (R-IA), and Roger Wicker (R-MS).
Read the full letter here or below:
The Honorable Laurentino Cortizo Cohen
President of the Republic of Panama
Panama City, Panama
Dear President Cortizo:
We write to thank you for your continued response with regard to Iranian shipping sanctions and the Panama Maritime Authority’s ship registry—specifically, the Panama Maritime Authority’s (AMP) focus on vessels suspected of carrying Iranian oil. It is our understanding that you intend to increase transparency and international compliance across the shipping industry to help cut into Iran’s illicit revenues, laying the groundwork to better address similar situations in the future. We sincerely appreciate your work in combating Iran and view your efforts as a significant strengthening of the partnership that our countries have shared for many years.
We understand that Panama, and other like-minded states, created the Registry Information Sharing Compact (RISC) partly to prevent ships cancelled in one jurisdiction from easily registering in a different jurisdiction. We also have been made aware that ships requested to leave the AMP’s registry before the AMP had them officially cancelled. Therefore, we urge Panama and other RISC states to work toward addressing this information sharing gap by also sharing information about ships that requested their own cancellation. Although not determinative of these vessels’ guilt, such a move may merit additional vetting before another RISC member state chooses to allow such a ship to register under their own flag.
This additional step will help put a stop to Iran’s ghost fleet, which has allowed it to export hundreds of millions of barrels of Iranian oil in recent years and which ultimately funds the regime’s continued human rights violations, proxy forces, and nuclear proliferation program. Iran consistently works in opposition to peace, stability, democracy, and shared American values and interests across the Middle East.
We appreciate the Panamanian government’s commitment to safeguarding our region from the threat posed by Iran, including by working closely with the U.S. Department of the Treasury. It is our hope that we continue to communicate on these important matters and further strengthen our relationship.
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