Russian Owner Challenges U.S. Sale Of Seized Oil Tanker Bella 1 Below Market Value To Block Recovery

U.S authorities have been accused of selling a seized Russian oil tanker to a scrap dealer at a price far less than its true value to prevent the owner from regaining its possession, the lawyers representing the company said.

Burevestmarin LLC called the move ‘economically irrational’ and conducted ‘behind closed doors’ to serve the interests of the Government.

After the allegations, the U.S Justice Department was instructed to provide an official response by Friday 9.00 a.m.

The issue concerns a tanker named Bella 1, which was intercepted and later seized by the U.S. military in the North Atlantic Ocean in January after being chased for almost a week as it attempted to escape the American blockade of Venezuela while carrying Iranian oil.

However, the lawyers of the Russian owner of the vessel dispute the allegation that it was loaded with Iranian cargo.

Court Filings from the owner’s legal team suggest that the tanker was sold to a scrap dealer for $9.1 million, which is far lower than the estimated $21 million that the vessel would have yielded solely for its scrap metal.

They said that even an accurate scrap estimate undervalues the ship, which is worth a lot more since it’s an operational commercial vessel.

While giving a brief, the attorneys said that the government took a position where it believed it could carry out an unreasonable sale for its convenience, without even providing a notice to the known interested parties.

Earlier, the government attorneys believed that seizing and holding Russian ships would create financial burdens, stating that liquidating the assets was needed to avoid spending millions of dollars on the ships’ repairs and maintenance.

In a court appearance in July, Justice Department attorney Rajbir Datta said that the government spent almost $60 million on maintaining the tanker and carrying out repairs.

At the core of the dispute is whether U.S officials are right in claiming that shipping Iranian oil aids the Islamic Revolutionary Guard Corps (IRGC).

The matter becomes even more complicated by the Trump administration’s decision to allow the international sale of Iranian oil to reduce fuel prices in the U.S.

The company is also fighting U.S efforts to confiscate other ships in its fleet, arguing that federal authorities are applying a legal double standard.

In litigation concerning another tanker, the Galileo, lawyers for the owner said that on March 20, 2026, the U.S. government filed a one-sided claim stating the ship served as a conduit of influence for the IRGC and its Quds Force.

On that same date, the attorneys argued, the government authorised licenses for the international sale of Iranian oil.

They argued that this shows the inconsistency in reasoning, mentioning that if transporting Iranian oil means unlawful support or property transfer to the IRGC, then the government’s own licensing action means a violation of many federal laws.

They also argued for a third vessel, the Skipper, mentioning that the Justice Department could have conducted an unlawful seizure, since the ship was seized while navigating international waters outside the jurisdiction of the U.S or any other country.