Panama Initiates Cancellation of Four Russian LNG Tankers Registrations Due to US Sanctions

On November 6th, Panamanian authorities announced the initiation of the process to cancel the registration of four LNG tankers due to US sanctions related to illicit activities. The vessels affected are the NORTH WAY, NORTH SKY, NORTH MOUNTAIN, and NORTH AIR. Their registrations and other navigation documents issued by Panama will be revoked.

These tankers are owned by New Transshipment FZE, a subsidiary of Novatek, and have been accused by the US of being part of the Russian “shadow fleet,” transporting shipments from the Russian Yamal and Arctic LNG 2 projects.

Previously, the process of revoking a vessel’s registration was lengthy and bureaucratic. However, on October 18th, President José Raúl Molino issued a decree to create a framework for quickly canceling registrations and licenses for vessels listed under US, EU, or UK sanctions.

In addition to the cancellation of registration and navigation documents, any organizations recognized by Panama are also prohibited from providing classification or certification to these vessels. This new streamlined process is viewed as a response to growing geopolitical pressure from Western nations on Panama to address illegal activities, such as oil smuggling and sanctions evasion, particularly concerning Russian and Iranian interests.