US sanctions Russian carriers transporting oil sold above price cap

The US Department of Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on three entities and identified as blocked property three vessels that used Price Cap Coalition service providers while carrying Russian crude oil above the Coalition-agreed price cap of US$60 per barrel.

Source: US Department of Treasury, as reported by European Pravda

Details: The new sanctions target three firms registered in the United Arab Emirates: Kazan Shipping, Progress Shipping і Gallion Navigation, which own the vessels Kazan, Ligovsky Prospect, and NS Century, respectively.

These vessels engaged in the export of Russian crude oil priced above US$60 per barrel after the crude oil price cap took effect. They used US-person services while transporting the Russian-origin crude oil.

Deputy Secretary of the Treasury Wally Adeyemo stressed that the US remains committed to pursuing firms and vessels that facilitate evasion of the price cap.

Background:

  • In December 2022, an international coalition of countries (the Price Cap Coalition), including the G7, the European Union, and Australia, agreed to prohibit the import of crude oil and petroleum products of Russian Federation origin unless that oil is bought and sold at or below the price cap of US$60 per barrel.

  • This year’s rise in global oil prices has led to a significant portion of oil from Russia being traded at a price above US$60 per barrel, which effectively offsets the effect of Western sanctions.

  • Earlier this week, Reuters reported that the US Department of Treasury had sent notices to 30 ship management companies requesting information about 100 vessels it suspects of violating Western sanctions on Russian oil.

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