US Treasury Imposes New Sanctions on Firms and Ships Violating Russian Oil Price Cap

The US Treasury has imposed new sanctions on firms and ships that used American service providers to carry Russian crude oil in violation of the multinational price cap. The sanctions block access to US property and bank accounts and prevent the targeted people and companies from doing business with Americans.

The US Treasury has announced a new round of sanctions on firms and ships that violated the multinational price cap on Russian crude oil. The sanctions, imposed by the Treasury's Office of Foreign Assets Control (OFAC), target three United Arab Emirates-based firms and block three ships that used US service providers to carry Russian crude oil above the USD 60 price cap.

Sanctions on UAE Firms and Ships

The sanctions block access to US property and bank accounts and prevent the targeted people and companies from doing business with Americans. The actions on the ships blacklist them from transporting goods with US service providers.

The US, along with the EU, countries in the Group of Seven and Australia, imposed a USD 60 a barrel limit last year on what Russia could charge for its oil. The cap is designed to deprive the Kremlin of revenue to fund its war in Ukraine, forcing the Russian government either to sell its oil at a discount or find a costly alternative shipping network.

Treasury's First Set of Sanctions

In October, Treasury imposed its first set of sanctions on two companies that shipped Russian oil in violation of the multinational price cap. "We are committed to maintaining market stability in spite of Russia's war against Ukraine, while cutting into the profits the Kremlin is using to fund its illegal war and remaining unyielding in our pursuit of those facilitating evasion of the price cap," said Wally Adeyemo, Treasury's deputy secretary.

Sanctions on Balkan Individuals and Entities

In addition to the sanctions on firms and ships violating the price cap, the Treasury also announced a set of sanctions on eight people and six entities across the Balkans, including Bosnia, Montenegro, and North Macedonia. The sanctioned individuals and entities are accused of corruption and enabling Russian malign influence in the region.

Brian Nelson, Treasury's undersecretary for terrorism and financial intelligence, said: "Russia has continued to use its influence in the Western Balkans to stymie the region's integration into international institutions and organisations, as well as leverage key jurisdictions to facilitate its aggressive destabilising activities."

The US Treasury's latest round of sanctions aims to disrupt Russia's ability to generate revenue from its oil exports and to counter Russian influence in the Balkans. The sanctions are part of a broader effort by the US and its allies to pressure Russia to end its war in Ukraine.