Dubai-based ship recycler **Global Maritime Services (GMS)** has formally applied for a **U.S. licence** to acquire and dismantle vessels seized by American authorities due to their involvement in **Venezuelan oil trading**. This move comes as Washington intensifies its campaign against Venezuela’s oil sector, leading to a growing number of impounded tankers.

The application follows the recent seizure of seven vessels in international waters by the **U.S. military and Coast Guard**. These ships were identified as either actively transporting **Venezuelan oil** or having done so previously. These actions are part of a broader U.S. strategy targeting Venezuela’s oil trade, which notably included the capture of President Nicolas Maduro by U.S. forces on January 3.

Many of the seized vessels belong to the so-called **”shadow fleet”** – a collection of aging tankers that frequently operate without recognized insurance or valid safety certifications. **Maritime experts** warn that such vessels pose a significant **risk of oil spills** while at sea, raising serious environmental and safety concerns.

**Anil Sharma**, founder and chief executive of GMS, emphasized the critical safety issues posed by these ships. He stated that these **sanctioned vessels** cannot be recycled without explicit **U.S. government approval**. GMS has applied for the necessary licence, actively seeking expedited processing, and has engaged in discussions with the **U.S. State Department** in recent weeks to advance their request.

While the **U.S. Treasury Department** refrains from commenting on individual licence applications, a spokesperson affirmed the government’s commitment to “responsible solutions to protect **maritime safety** and remove designated vessels from the water.” The **scrap value** of these tankers can be substantial, potentially reaching tens of millions of dollars depending on their size and type. Sources cited by Reuters indicate that the U.S. government has filed court warrants to seize dozens more tankers linked to the **Venezuelan oil trade**. However, holding seized vessels incurs significant costs and resource strain for U.S. agencies, including the **Coast Guard**.

According to GMS’s analysis, the recycling of **sanctioned tankers** has seen a notable increase. In 2025, 16 such tankers were reportedly dismantled at yards willing to accept them, a sharp rise from just one tanker in both 2024 and 2023. Industry officials have noted that these vessels were often dismantled using non-U.S. dollar transactions, a practice that could breach **U.S. restrictions** and potentially expose those involved to **sanctions penalties**.

**GMS**, incorporated in the United States, specializes in purchasing ships for recycling and subsequently selling them to **ship-breaking yards**, primarily located in **India and Bangladesh**, which collectively host the world’s largest **ship recycling industries**. The company has a track record of successfully recycling **sanctioned vessels** with prior U.S. approval. For instance, in 2019, GMS acquired the North Korean-flagged bulk carrier **Wise Honest** from the U.S. government at a public auction after its seizure for **sanctions violations**.

Data from **maritime intelligence firm Lloyd’s List Intelligence** reveals the extensive scope of sanctioned oil transport, with 1,423 tankers involved in moving oil from **Russia, Iran, and Venezuela**. A significant portion of these – 921 vessels – are subject to sanctions imposed by the **United States, the United Kingdom, or the European Union**.

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