Top Recycler GMS Gets U.S. Approval to Scrap Ships Hit With Sanctions

LONDON, May 27 (Reuters) – Dubai-based GMS has won U.S. government approval to scrap four container ships that were under Iran-related sanctions, potentially paving the way for Washington to reduce the shadow fleet of such vessels, the leading ship recycler’s CEO said.

Hundreds of ships with no known insurance or compliance with environmental safety standards have not only helped Iran and Russia circumvent sanctions, but also posed a threat of oil spills and fuel leaks in busy sea lanes.

An approved mechanism for scrapping such vessels offers an incentive to take them out of circulation, helping reduce environmental risks and better