The Treasury Department announced sanctions on three UAE-based companies, Kazan Shipping, Progress Shipping, and Gallion Navigation for transporting Russian crude without adhering to the $60-a-barrel Russia oil price cap set by the U.S. and its allies.
The United States has imposed sanctions on additional shipping entities and vessels accused of violating the Russia oil price cap, aimed at curbing Russia’s oil revenue
The vessels affected are Kazan’s Kazan, Progress’s Ligovsky Prospect, and Gallion’s NS Century. Deputy Treasury Secretary Wally Adeyemo emphasized the U.S.’s steadfast commitment to pursuing those involved in evading the Russia oil price cap. The sanctions prohibit U.S. individuals and entities from engaging in transactions with the sanctioned ships and their owners. The companies in question have not responded to requests for comment.
The Russia oil price cap seeks to diminish Russia’s revenue amid its invasion of Ukraine without causing a surge in oil prices
Western corporations face limitations in transporting, funding, or providing insurance for Russian crude unless it is sold at a price below $60 per barrel. Despite these restrictions, Russia’s tax revenue from oil and gas experienced a significant increase, doubling in October in comparison to September. According to a recent World Bank report, enforcing the cap on Russian oil prices may be becoming more difficult. In the past month, the Treasury Department imposed sanctions on oil tankers and their proprietors for the first time, focusing on businesses in the UAE and Turkey.
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