Bahamas: Ship owners risk registry removal for Russia sanctions violations
The Bahamas Maritime Authority has issued an alert warning ship owners and operators about sanctions risks related to Russian trade and ownership, including the threat of removal from the Bahamian ship registry for sanctioned vessels.
The notice highlights that sanctions imposed by the United States, United Kingdom and European Union ‘may directly affect any vessels owned or operated by Russian entities and/or involved in trade to Russia’.
The BMA warned that ‘should any Bahamian ship be sanctioned by the USA, EU, UK, or The Bahamas itself, the likely outcome is removal from the register’, representing a significant enforcement consequence for vessels operating under the Bahamian flag.
Ship owners and managers are ‘strongly advised to seek independent legal advice on the potential implications of the sanctions as a result of Russian ownership, operation, financing, insurance or involvement in Russian trade’, according to the alert.
It comes as maritime authorities worldwide grapple with enforcing complex international sanctions regimes that have expanded significantly since Russia’s invasion of Ukraine, affecting shipping companies through ownership structures, financing arrangements and insurance coverage.
The Bahamas operates one of the world’s largest ship registries, making its compliance guidance significant for the global shipping industry navigating sanctions restrictions on Russia-related maritime activities.
Panama, also among the world’s largest ship registries, warned in March it had removed 107 vessels from its registry due to their presence on US, UK and EU watchlists for suspected sanctions violations.
The Bahamas authority advised owners, charterers, and operators to ‘conduct thorough due diligence to identify and address any potential issues related to sanctions or other prohibited activities before entering Russian ports’.
The alert also addresses practical challenges for seafarers, noting that Russian and Ukrainian crew members whose certificates expire while onboard should contact the authority’s seafarers department to find solutions for certification issues arising from the conflict.
The maritime authority confirmed it is conducting ‘ongoing monitoring of all Bahamas flagged ships operating in the sea and port areas of Ukraine and Russia’, requiring vessels to maintain operational tracking systems at all times.
The guidance reflects broader challenges facing the maritime industry as shipping companies navigate complex sanctions regimes that can affect vessel operations through multiple pathways including ownership, financing, insurance, and cargo considerations.
The enforcement focus has intensified around so-called ‘shadow fleets’ of aging tankers used mainly by Russia and Iran to transport oil in violation of sanctions, with maritime law experts warning of escalating legal consequences for industry participants.
‘This worrying trend of shadow fleet activity presents systemic risks for the global shipping industry and underscores the potential for shipbrokers and intermediaries to become unintentionally involved in transactions that support sanctioned activities,’ international law firm Hill Dickinson warned in an advisory last month. ‘In the current regulatory climate, compliance is not optional – it is a critical safeguard against legal liability, reputational damage, fines and criminal prosecution,’ it said.
https://www.bahamasmaritime.com/wp-content/uploads/2025/07/TA003-Russia-and-Ukraine.pdf
https://www.hilldickinson.com/insights/articles/international-sanctions-implications-shipbrokers
