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U.S. Sanctions Owners Of Two Vessels For Carrying Russian Oil Priced Above Cap

By RFE/RL October 12, 2023

The U.S. Treasury Department has announced sanctions on two companies for allegedly violating a price cap on Russian oil agreed last year by Western countries.

Vessels owned by companies based in the United Arab Emirates and Turkey were cited as having violated a price cap set in December by the countries in the Group of Seven leading economies, the European Union, and Australia.

The coalition set the price cap at $60 per barrel for Russian crude to restrict income for Russian oil that could then be used to fund its invasion of Ukraine.

A vessel owned by U.A.E.-based Lumber Marine was found to have violated price-cap policy, the U.S. Treasury Department said in a news release. The vessels carried Russian-origin crude priced at more than $75 a barrel, the Treasury said in a statement on October 12.

The department also sanctioned Turkey-based Ice Pearl Navigation Corporation, saying one it its vessels carried crude oil priced above $80 a barrel.

"Today's action demonstrates our continued commitment to reduce Russia's resources for its war against Ukraine and to enforce the price cap," Deputy Treasury Secretary Wally Adeyemo said in the statement.

The cap bans Western companies from providing maritime services such as insurance, finance, and shipping to Russian seaborne oil exports sold above $60 a barrel. The coalition implemented the program to restrict Russian revenue while keeping oil flowing to markets.

Both tankers used U.S.-based service providers while transporting the Russian origin oil, the Treasury Department said.

"Because of the actions we're announcing today, and the further actions we will take in the coming weeks and months, these costs will continue to rise and Russia's ability to sustain its barbaric war will continue to weaken," a senior Treasury official told reporters in a conference call.

U.S. Treasury Secretary Janet Yellen on October 11 said the price cap had sharply reduced Russian revenues over the past 10 months and that it was critical to keep imposing severe and increasing costs on Russia over its war in Ukraine.

With reporting by Reuters, AFP, and AP

Source: https://www.rferl.org/a/united-states-treasury- sanctions-russian-oil-price-cap/32634819.html

Copyright (c) 2023. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036.