November9 , 2026

    US-Sanctioned LR1 Oil Tanker Headed to Alang Ship-Breaking Yard

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    A 2004-built LR1 oil tanker, sanctioned by the US Treasury’s Office of Foreign Assets Control (OFAC) last December, has been sold for recycling and is now anchored in the demolition zone at the Alang ship-breaking yards in Gujarat, India, according to industry tracking data and market sources.

    The Jamaica-flagged vessel, previously called Diana and known under other names including Ecostar and Yolanda, has been linked to high-risk trading patterns — including operations under sanctions — over the years. After being removed from the Indian Register of Shipping earlier this month at the owner’s request, the tanker was reported as sold for scrap with no price disclosed.

    Ship-breaking activity in Alang has increasingly involved ageing vessels tied to sanctions regimes, as tighter enforcement and global oversupply push older tankers toward demolition. Analysts say many such “shadow fleet” vessels are reaching the end of their economic life, and scrapyards are willing to accept sanctioned tonnage despite legal and financial risks.

    The dismantling of sanctioned tankers in India reflects broader shifts in the maritime sector, where older ships are exiting the fleet amid geopolitical pressures and evolving oil trade dynamics.