US official hails Panama decree to strip sanctioned ships of registration

Stricter registration policies from Panama, the world’s largest ship registry, come amid a push to crack down on oil smuggling.

A former United States official has praised a new executive decree from Panama that is set to strip maritime vessels of their domestic licences and registrations if they face global sanctions.

On Tuesday, John Feeley, who served as the US ambassador to Panama from 2015 to 2018, told Al Jazeera the move was a “welcome step by Panama’s new government, which is working hard to improve the business climate”.

Panama — home to one of the busiest maritime shipping routes in the world, the Panama Canal — also boasts the largest ship registry since 1993.

But the country has faced a growing Western push to crack down on illicit trades like oil smuggling, particularly from Iran and Russia.

“There are basically just a few big registries in the world,” Feeley told Al Jazeera. “The international maritime authorities, as well as the US government and the European Union member states watch them closely… Reputation risk is at play.”