Detained Iran tanker departs Gibraltar waters

Market: Crude oil
19/08/19

An Iranian oil tanker that was detained by Gibraltar's authorities early last month on suspicion of taking crude to Syria has departed the UK overseas territory, after a last-ditch request by the US to halt the vessel's release was turned down.

"I can confirm that finally, 45 days after it was seized in Gibraltar's waters, this tanker has begun to make its way towards international waters," Iran's ambassador to the UK, Hamid Baeidinejad, said.

The Grace 1, which has been renamed Adrian Darya 1, left the port of Gibraltar late yesterday evening, according to transponder data. The tanker is signalling the Greek port of Kalamata as its next destination.

The government of Gibraltar released the very large crude carrier (VLCC) on 15 August, after receiving assurances from Tehran that the tanker would not breach EU sanctions by discharging its 2.1mn bl cargo of Iranian crude in Syria. The vessel was reflagged as Iranian and re-insured.

A last-minute intervention by the US failed to block its release. The US Department of Justice issued a warrant to seize the ship and its cargo on the grounds that it is violating US sanctions. The US warrant called for the forfeiture of the "oil tanker Grace 1, all petroleum aboard it and $995,000" over allegations of "a scheme to unlawfully access the US financial system to support illicit shipments to Syria from Iran by the Islamic Revolutionary Guard Corps (IRGC)".

But Gibraltar said it could not comply with the request because US sanctions against Tehran do not apply in the EU. "The Gibraltar Central Authority is unable to seek an order of the Supreme Court of Gibraltar to provide the restraining assistance required by the United States of America… [as] a result of the operation of European Union law, and the differences in the sanctions regimes applicable to Iran in the EU and the US," the Gibraltar government said yesterday. "The EU sanctions regime against Iran — which is applicable in Gibraltar — is much narrower than that applicable in the US," it said.

The UK-flagged tanker Stena Impero — which was seized in the strait of Hormuz by Iran two weeks after the Grace 1's detention for "breaching international maritime law" — remains in Iranian custody. There have been rumours of a possible swap in recent weeks, but Iran's foreign ministry spokesman today insisted that the fate of the Stena Impero was in no way linked to that of the Grace 1.

"From the beginning, we have said that there is no particular relationship between the two," Abbas Mousavi said. "We are happy that our ship, which was unjustly and illegally seized, has been released, but for the release of the UK ship, we have to wait to see what the ruling of the court will be."

The Stena Impero has "two or three maritime charges against it", which are being investigated in Iranian courts, Mousavi said.

"We hope that this investigation is concluded as soon as possible, and the court issues its verdict, whatever that may be. If it is positive, [the vessel] will be released … so that it can be on its way," he said.

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