US slaps sanctions on UAE-based shipping firm over Russian price caps
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The United States is imposing new sanctions on a shipping company based in the United Arab Emirates for allegedly not adhering to the price cap for Russian crude oil, the US Treasury Department said on Thursday.
“No one should doubt our coalition’s commitment to stopping those who help the Kremlin,” said Deputy Treasury Secretary Wally Adeyemo in a statement.
The shipping company owns 18 tankers and freighters carrying Russian crude oil and petroleum products, the Treasury said.
In response to Russia's war against Ukraine, the US, European Union, G7 and Australia had decided on an oil price cap. The aim was to dry up Russia's war chest and stabilize energy prices.
The cap is intended to force Moscow to sell oil for a maximum of $60 per barrel or 159 litres, which is below the world market price.
Implementing the price cap is difficult partly because Russia is increasingly relying on a so-called shadow fleet - ships that are not owned by Western shipping companies or are dependent on Western insurance, experts say.
According to the Treasury Department, the shipping company now being sanctioned was founded at the end of 2022 and purchased older tankers shortly before the oil price cap came into force. Since then, they have repeatedly called at Russian ports.
US citizens or people who are in the United States are prohibited from doing business with sanctioned companies and individuals. Sanctions also make it difficult for the affected companies to do international business outside the US.
