• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 7 days What fool thought this was a good idea...
  • 10 days They pay YOU to TAKE Natural Gas
  • 10 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 5 days A question...
  • 16 days The United States produced more crude oil than any nation, at any time.
Two Sectors Driving the Future of Oil Demand

Two Sectors Driving the Future of Oil Demand

Oil demand is expected to…

Oil, Gas Activity in U.S. Holds Steady

Oil, Gas Activity in U.S. Holds Steady

The total number of active…

RFE/RL staff

RFE/RL staff

RFE/RL journalists report the news in 21 countries where a free press is banned by the government or not fully established. We provide what many…

More Info

Premium Content

U.S. Sanctions U.A.E. Maritime Firms for Bypassing Russian Oil Price Cap

  • Sanctions are part of efforts to reduce Russian oil revenue funding its war in Ukraine.
  • Sanctions target companies and vessels using U.S. services to transport overpriced Russian crude oil.
  • The action is in line with the G7's strategy to limit Russia's wartime profits while maintaining global energy market stability.
Maritime Oil

The U.S. Treasury Department has imposed sanctions on three maritime companies based in the United Arab Emirates (U.A.E.) and three vessels owned by the companies for shipping Russian oil sold above a price cap imposed by the world’s major economies to reduce the amount of oil revenue Moscow has to fund its war in Ukraine.

The companies and the vessels are accused of engaging in the export of Russian crude oil priced above the $60 a barrel cap. The department’s Office of Foreign Assets Control (OFAC) said in announcing the sanctions on November 16 that the vessels used “U.S.-person services while transporting the Russian-origin crude oil.”

The price cap bans Western companies from providing such services, including insurance, finance, and shipping, for Russian seaborne oil exports sold above $60 a barrel.

The Group of Seven (G7) leading industrialized countries -- Britain, Canada, France, Germany, Italy, Japan, and the United States -- imposed the price cap last year after ruling out an outright ban on Russian seaborne oil in order to keep the commodtity flowing. Australia later joined the G7 in enforcing the price cap.

“Shipping companies and vessels participating in the Russian oil trade while using Price Cap Coalition service providers should fully understand that we will hold them accountable for compliance,” Deputy Treasury Secretary Wally Adeyemo said in the Treasury Department’s statement.

The United States is committed to maintaining market stability in spite of Russia’s war against Ukraine while at the same time “cutting into the profits the Kremlin is using to fund its illegal war,” Adeyemo added.

State Department spokesman Matthew Miller said the price cap continues to limit the impact of Russia's war against Ukraine on global energy markets.

“Since our Coalition implemented the price cap policy, we have been clear in communicating that our aim is to prevent Russia from earning a steep wartime premium on its oil sales while also maintaining global energy market stability,” Miller said in a statement.

The action freezes any assets in U.S. jurisdiction owned by those targeted and generally bars Americans from dealing with them.

The U.A.E.-based firms targeted are Kazan Shipping Incorporated, Progress Shipping Company Limited, and Gallion Navigation Incorporated. The vessels are the Kazan, Ligovsky Prospect, and NS Century, the Treasury Department said.

The action comes a month after the Treasury Department imposed the first sanctions on owners of tankers accused of carrying Russian oil priced above the cap. One of the owners is in Turkey, the other is in the U.A.E.


More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News