It is very important for the US and our Coalition partners to make sure that the price cap on Russian oil is followed, said Deputy Treasury Secretary Wally Adeyemo
Oil tanker ship at Terminal point of the Eastern Siberia – Pacific Ocean pipeline. Joint stock company “Transneft” – Kozmino oil port. Nakhodka, Primorsky Krai, Russia – August 16, 2019. (PHOTO: EUROMAIDEN PRESS)
The Office of Foreign Assets Control (OFAC) of the US Treasury Department has put new penalties on three foreign companies and three ships for selling Russian oil at prices that were higher than the limits set by the government. The move, which was announced on December 1, shows that OFAC is serious about stopping illegal activities and keeping the global oil trade running smoothly. The penalties work as a barrier and make following international rules even more important.
In a connection attempt to prevent Russia’s financial support for the war in Ukraine, the United States, along with G7 countries and Australia, implemented a major measure in 2022. Setting a cap of $60 per barrel, this move aimed to restrict Russia’s income from seaborne oil exports. The planned application of this price limit shows a strategy approach by the international community to curb Russia’s ability to fund its military activities in Ukraine. This unified action underscores the commitment of these nations to address the ongoing conflict and mitigate the economic resources available to Russia, signaling a coordinated stance against activities that might worsen international conflicts, in the region.
According to Euromaiden Press report, US Treasury Department has put three ships on a “blacklist” because they broke sanctions by moving crude oil from Russia while using US services. Sanctions were also placed on Sterling Shipping Incorporated, Streymoy Shipping Limited, and HS Atlantica Limited, named as the legal owners of the boats. This strong move by the US government shows that it is determined to keep limits on Russian oil trade in place. In a similar move in October, sanctions were put on two ship owners for bringing Russian oil above the G7 price cap. This shows that international rules are still being followed.
