US sells seized sanctioned oil tankers to Dubai recycler for scrapping

The U.S. government has sold two oil tankers seized in connection with sanctions on Venezuela and Russia to a Dubai-based ship recycler, which plans to scrap them in India.

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The U.S. government has sold two sanctioned oil tankers for scrap, marking an unusual end to vessels that once evaded international sanctions. The buyer is Global Marketing Systems (GMS), a Dubai-based ship recycling firm, which purchased the vessels in July 2026. The purchase price was not disclosed.

The two tankers, named Era and Lileo, are both slated for demolition at scrap yards in India. The Era, previously known as Marinera and Bella 1, was seized in January 2026 in waters south of Iceland by the U.S. Coast Guard and military special forces. The vessel had earlier slipped through a U.S. blockade in the Caribbean that was aimed at stopping Venezuelan oil exports, and had been used to transport sanctioned oil from Venezuela and Iran.

The Lileo, previously called Galileo and Veronica, was seized in the same month in the Caribbean Sea. The vessel was subject to U.S. sanctions against Russia, according to the fact sheet.

Anil Sharma, CEO of GMS, confirmed the sale in a statement, noting that a court order authorized the transaction. "The U.S. government has sold them to us and there was a court order authorizing the sales, but there are complexities, not least the fact that we weren’t really sure who previously owned them," he said. The complexities highlight the murky ownership history typical of vessels that operate outside international sanctions.

The sale comes after U.S. authorities seized up to 10 oil tankers following military action in Venezuela. Sanctioned vessels frequently change names to evade detection, making their ownership and history difficult to trace. GMS did not respond to a Reuters request for comment.

The disposal of the tankers underscores the ongoing U.S. efforts to enforce sanctions against Venezuela and Russia, and the role of ship recyclers in handling vessels that have been caught violating international trade restrictions.