Anil Sharma calls for regulatory framework to recycle sanctioned vessels

“Regulators cannot ignore this issue,” said Anil Sharma, the Indian-born Founder and Chief Executive Officer of GMS. “There are ageing and dangerous vessels operating on the world’s oceans today. Ignoring them does not make them disappear. These ships must be removed responsibly through safe and legal recycling channels,” he stated.

Ship recyclers are in a fix about accepting sanctioned dark fleet for recycling, over fears of attracting secondary sanctions, or just ignore the risk to rack up business after pumping money into upgrading their facilities to meet a global treaty on green ship recycling that entered into force in 2025.

To be sure, GMS has stayed clear of dealing with sanctioned fleet despite the slack in global ship recycling activity.

“In the current subdued recycling market, where global recycling volumes have been among the lowest in years, a structured licensing window would help keep upgraded Indian ship recycling capacity productively utilised, sustaining employment and supporting the wider downstream ecosystem, including re-rolling, logistics, equipment reuse and associated services,” Sharma, who is named in the Lloyd’s List ‘Top 100 Most Influential People in Shipping in 2025, and for the 16th consecutive year, said.

GMS has proposed a six-month window to evaluate the program’s success. Authorities would retain complete control over monitoring, transaction visibility, and the implementation of any penalty or restriction mechanisms deemed necessary.

Sharma’s call aligns with the global maritime industry’s rising demand for a lawful, environmentally responsible solution to the escalating risks posed by the shadow fleet.

Senior industry leaders, including Evangelos Marinakis (Capital Group, Founder), Jan Dieleman (Cargill CEO), Lars Barstad (Frontline CEO), and others, have recently emphasised the urgent need to allow sanctioned vessels to be recycled safely under regulated frameworks.

According to analysis from maritime data specialist Lloyd’s List Intelligence, the shadow fleet of older, often uninsured tankers operating outside Western oversight is now estimated at over 1,400 vessels.

Separately, a 2025 maritime safety and marine-insurance risk review estimates that around 17 per cent of the world tanker fleet now belongs to the dark fleet.

On December 18 2025, the European Union imposed restrictive measures on an additional 41 vessels linked to the Russian shadow fleet, bringing the total designated vessels to almost 600….India is well-positioned to support a regulated, environmentally sound pathway for recycling sanctioned ships, GMS said. The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), adopted by the International Maritime Organisation, of which India is a contracting party, entered into force on June 26, 2025.

India has already operationalised its ship recycling compliance framework with more than 110 HKC-compliant ship recycling yards. “We encourage all maritime bodies, IMO, ICS, Intertanko, Intercargo, BIMCO and others, to support this initiative. A responsible path exists. It is time to use it,” Sharma added