(MENAFN- KNN India) New Delhi, Aug 8 (KNN) A US-sanctioned oil tanker, previously known as Jasmine and now renamed Contract II, has been sold for demolition in India under unusual financial terms, reflecting growing pressure on the aging dark fleet as global sanctions tighten.

The vessel, nearly 30 years old and sanctioned in 2019 for its role in the Iranian oil trade, was beached in late June at Alang in Gujarat - one of the world's largest ship-breaking hubs.

The sale contract, viewed by Bloomberg, reveals extended payment terms of 180 days, far exceeding the typical few days or weeks in the industry.

The buyer, Shantamani Enterprise LLP, is allowed to make partial payments over six months without interest. Experts say such terms suggest the seller, Thousand Miles Shipmanagement Corp., is urgently trying to offload the vessel.

The Seychelles-based company, reportedly connected to other sanctioned entities, lacks any public presence or contact information.

This sale highlights how difficult it has become to operate old tankers under sanctions. As of now, 886 tankers - 78% of the so-called dark fleet - are under US or EU sanctions for ties to Russian, Iranian, or Venezuelan oil exports.

The sale price, listed as AED 14.04 million (about $3.82 million), was settled in UAE dirhams - an uncommon currency in shipbreaking deals, which are usually in US dollars.

Payment details were also missing from the document, further pointing to efforts to obscure ownership and avoid scrutiny.

The dismantling process for Contract II has now begun, marking the end of another sanctioned tanker's shadowy journey.

(KNN Bureau)

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