According to foreign media reports, the United States has opened another potential channel for sanctioned vessels to exit international shipping. Dubai-based ship recycling company Best Oasis has been authorized to negotiate transactions involving US-sanctioned ships.

According to TradeWinds on November 10, the authorization was issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC), making Best Oasis the second company to receive such a license after its rival GMS.

This means older vessels in sanctioned fleets now have an additional exit route. As Western governments target ships involved in transporting Iranian, Russian and Venezuelan oil, this sanctioned fleet is expanding rapidly.

Under the authorization, Best Oasis may negotiate deals for sanctioned vessels. The ships can be sold for recycling or demolition under US oversight, but each transaction must be approved by OFAC to ensure sanctioned shipowners do not benefit from the proceeds.

Best Oasis is led by Gaurav Mehta and is one of the world’s largest cash buyers of end-of-life vessels. Founded in 2010, it is an extension of India’s Priya Blue ship recycling business.

Previously, rival GMS has received several landmark approvals this year. In May, the US approved GMS to acquire four sanctioned container ships linked to Iranian shipping magnate Mohammad Hossein Shamkhani for demolition. The four vessels — Yogi, Timon, Rantanplan and Bigli — had been stranded after being placed on the US sanctions list last year. In August, GMS was also approved to recycle two detained tankers, Marinera and Galileo, which were seized by US forces during operations against Venezuelan oil shipments.

As the share of sanctioned vessels in the shipbreaking market continues to rise, regulators are showing increasing willingness to issue permits for recycling transactions.