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Panama's vessel registry claims that it is not a place for sanction evasion

The Central American nation's Maritime Authority announced on Wednesday that Panama had made progress in removing vessels from its registry if they did not meet the standards of its flag. This was a response to criticisms by the United States that it had allowed sanctioned nations to move ships under the Panamanian flag.

Officials and congressmen from the United States have accused Panama for not doing enough to enforce sanctions against vessels and shipowners from countries such as Russia, Iran and Venezuela. Donald Trump, the U.S. president, has used these arguments in threatening to take over the Panama Canal.

Washington has asked Panama to cancel the registrations of dozens ships that are suspected of transporting oil or other commodities sanctioned by the United States, or of engaging in ship-to-ship transfers in order to conceal the origin or country of cargoes.

Panama's Maritime Authority announced that the latest evaluation of its registry, conducted by an independent fleet-monitoring firm, showed 96.5% compliance to international safety and environment standards.

In a press release, the Panama Maritime Authority said that it had intensified fleet purge activities, removing vessels from its registry that did not meet required standards. It added that the registry was "not a refuge for sanctions evasion."

In a press release, Ramon Franco said, "We maintain a policy of zero tolerance for any attempt to misappropriate the Panamanian Registry."

The authority didn't disclose how many vessels had been removed from the registry.

According to the Maritime Authority, S&P Global’s consultancy IHS Markit reported that Panama's registry will add a net of 468 ships in 2024 for a total 8,773 vessels under its flag.

(source: Reuters)