US Imposes Fresh Sanctions Over Shipment of Russian Oil Above Price Cap
By Daphne Psaledakis and Timothy Gardner
US Imposes Additional Sanctions on Entities and Oil Tankers Over Russian Oil Price Cap
The United States has imposed additional sanctions related to the price cap on Russian oil, targeting three entities and three oil tankers. This move aims to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine.
Treasury Department Accuses Entities of Violating Price Cap on Russian Oil
The U.S. Treasury Department accused the entities targeted on Friday of using Western maritime services such as transportation, insurance, and financing while carrying Russian oil above the $60-per-barrel price cap.
Background on $60-Per-Barrel Cap on Seaborne Exports of Russian Crude
The Group of Seven rich countries, the European Union, and Australia imposed the $60-per-barrel cap last December on seaborne exports of Russian crude. The mechanism bans Western companies from providing services for oil sold above the cap.
Details of Sanctioned Vessels and Their Owners
The Treasury said that the vessels NS Champion, Viktor Bakaev, and HS Atlantica carried Russian Urals crude above $70 per barrel. The agency also provided details on the registered owners of these vessels.
Response and Impact of Sanctions
Russia’s embassy in Washington did not immediately respond to a request for comment. The sanctions block all property and interests of the listed tankers and owners in the U.S. or in possession of U.S. persons, aiming to enforce punitive measures against Russia over its invasion of Ukraine last year.
Upholding the Dual Goals of the Price Cap
Treasury Deputy Secretary Wally Adeyemo stated that by targeting these companies and their ships, the U.S. aims to uphold the dual goals of the price cap by restricting Russia’s profits from oil while promoting stable global energy markets.
General License Issued
The Treasury also issued a general license authorizing limited safety and environmental transactions involving those targeted, including transactions necessary for the safe docking and anchoring of the blocked vessels, until Feb. 29.
