US publishes alert to 30 ship management firms suspected of dodging Russian oil price caps
Date
11/14/2023 2:30:32 AM
(MENAFN) In a significant move, the US Treasury Department has reportedly issued notices to 30 ship management companies, seeking information on over 100 vessels suspected of transporting Russian crude oil at prices exceeding the established limits imposed by the West. The action, considered the largest of its kind, comes as part of ongoing efforts by the United States and its allies to curb oil revenues for Moscow following its invasion of Ukraine.
The notices, dispatched by the Office of Foreign Assets Control (OFAC) to ship management firms across approximately 30 countries last Friday, mark a notable escalation in sanctions enforcement. This measure follows the imposition of a price cap by the Group of Seven (G7) countries, the European Union, and Australia in December of the previous year, limiting seaborne Russian crude exports to $60 per barrel. The aim was to penalize Moscow for its role in the conflict with Ukraine. Notably, Western companies are prohibited from providing various services, including transportation, insurance, and financing, for oil transactions that exceed this maximum price.
Requests for information, a standard procedure in sanctions investigations, are integral to this latest enforcement effort. However, as of now, the Treasury Department has not provided an official comment on the situation.
The imposition of the price ceiling has led to a notable shift in global oil markets. China and India, in response to the restrictions, have emerged as key purchasers of Russian oil, traditionally destined for European and other markets. Despite these measures, the surge in global oil prices throughout the current year has resulted in most Russian oil being traded at levels surpassing the established maximum, prompting this thorough investigation into potential violations by ship management entities.
This latest development underscores the continued commitment of the United States and its allies to rigorously enforce sanctions against Russia, signaling a robust response to any attempts to circumvent imposed restrictions in the energy sector.
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