Shipping Companies Face, US Sanctions for Violating , Russian Oil Price Cap.
On October 12, the United States Treasury Department
announced that it has approved sanctions on two
companies that violated a multinational price cap.
On October 12, the United States Treasury Department
announced that it has approved sanctions on two
companies that violated a multinational price cap.
ABC reports that the U.S., the European Union,
and other countries in the G7 agreed to
impose a $60-a-barrel limit in 2022. .
The move was an attempt to reduce
the Kremlin's revenue stream for
funding Russia's war on Ukraine. .
According to the Treasury Department,
the two companies facing sanctions are
based in the United Arab Emirates and Turkey. .
ABC reports that Lumber Marine,
an Emirates-based company, shipped
Russian oil priced above $75 a barrel. .
In a separate incident, a Turkey-based company,
Ice Pearl Navigation, reportedly carried
Russian oil priced at $80 a barrel.
The sanctions will block the companies' access to
any U.S. property or financial interests, while also
preventing them from conducting any U.S. business.
The Biden administration has stressed the success
of the price cap, citing a 45% reduction in Russian
oil tax revenue since it was put into place.
ABC reports that an unnamed senior treasury official
said that Russia has attempted to build an alternative
shipping network in response to the price cap. .
ABC reports that an unnamed senior treasury official
said that Russia has attempted to build an alternative
shipping network in response to the price cap. .
The official reportedly added that enforcing the cap
will serve to further increase Russia's oil industry costs
to reduce funds available for its war efforts in Ukraine. .
The official reportedly added that enforcing the cap
will serve to further increase Russia's oil industry costs
to reduce funds available for its war efforts in Ukraine.