US urges Panama to stop Iranian ships from flying its flag to evade sanctions

By AFP and ToI Staff 14 March 2024, 9:50 am

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Illustrative - In this photo released by Suez Canal Authority, the Ever Given, a Panama-flagged cargo ship, is accompanied by Suez Canal tugboats as it moves in the Suez Canal, Egypt, Monday, March 29, 2021. (Suez Canal Authority via AP)

A United States special envoy has urged Panama to stop Iranian ships from flying its flag, which allows Tehran to evade sanctions imposed by Washington.

The small Central American nation is the world leader in offering flags of convenience, which allow shipping companies to register their vessels in countries to which they have no link — for a fee and freedom from oversight.

“Iran and actors related to Iran are trying to evade sanctions here in Panama. They’re trying to abuse Panama’s flag registry,” says Abram Paley, US deputy special envoy for Iran.

Paley was visiting the country yesterday “to ensure Panama’s shipping registry and jurisdiction is not abused by entities attempting to evade our sanctions on Iran.”

According to the Panama Maritime Authority, the country has registered 8,540 ships, about 16 percent of the global fleet.

Washington suspects that some of them are used by Iran to transport oil or its derivatives, to bypass sanctions.

The US government accuses Iran of financing Yemen’s Houthi rebels and other terror groups such as Hezbollah and Hamas with the revenue it receives from oil sales.