Breach of U.S. Sanctions against Iran Prompt Bank For Seizing the Ships

Breach of U.S. Sanctions against Iran Prompt Bank For Seizing the Ships

Reports claiming that the fuel tankers which seem to breach the sanctions of United States against Iran were mentioned in the court filings by a bank as it tried to take hold of the ships, accusing their owners of loan default.

These accusations that led to the temporary arrest of the ships in Singapore have come to light as the U.S. was seeking to isolate the government in Tehran by cutting off the sales of oil which is their major revenue source. They further underscore how the traders and the shippers were suspected of violating that the sanctions could run afoul of not just the governments but also their own lenders.

NorddeutscheLandesbank-Girozentrale based on Hanover and known as NordLB have detailed its claim in the documents that were filed in the High Court of Singapore last month demanding the arrest of the vessels and accusing their Chinese owner of defaulting on a thirty million dollar mortgage agreement.

The German lender reported in the filings that it was notified on 25th June by the London P&I Club, an association of the shipowner which provides protection as well as indemnity insurance that the coverage on these ships shall be terminated.  It was also reported that the two ships, Gas Infinity and the Gas Dignity seemed to have been transporting liquefied petroleum gas by Iran, breaching the United States sanctions.

NordLB said that it believed London P&I had terminated coverage once they were contacted by Lloyd’s for commenting for the article. The London P&I club then confirmed that it was no longer insuring Gas Infinity, however, they refused to comment further.