US Imposes Sanctions on 2 Shipping Companies from Turkey and the UAE for Violating Price Cap on Russian Oil

For the first time, the US government has imposed sanctions on shipping companies for breaching the price cap on Russian oil.

This announcement was made on the website of the US Department of the Treasury.

Price limits on crude oil were put in place in December 2022, with a cap of $60 per barrel on Russian oil.

The SCF "Primorye" transported oil to the Novy Port at a price exceeding $75 per barrel from a port in the Russian Federation after the price cap on oil came into effect. The registered owner of SCF "Primorye" is Lumber Marine SA, based in the United Arab Emirates.

The company YasaGolden Bosphorus transported ESPO crude oil at a price higher than $80 per barrel after the price cap on crude oil was implemented. The registered owner of YasaGolden Bosphorus is the Turkish Ice Pearl Navigation Corp.

Both SCF "Primorye" and YasaGolden Bosphorus, which engaged in activities at ports in the Russian Federation, utilized American service providers during the transportation of Russian oil.

"Today's actions demonstrate our ongoing commitment to reduce resources for Russia in its war against Ukraine. We remain steadfast in implementing the price-limiting policy, which has two objectives: reducing the oil revenues that Russia relies on and maintaining stability in global energy markets," said Deputy Secretary of the Treasury Wally Adeyemo.

The United States is part of the international Price Cap Coalition, which includes the G7, the European Union, and Australia. These countries have agreed to prohibit the import of crude oil and petroleum products originating from the Russian Federation. They have also restricted a wide range of services related to the maritime transportation of crude oil and petroleum products from Russia if the oil is not bought and sold below a certain price cap set by the Coalition.

This policy is known as the "price cap." It aims to ensure a reliable supply of crude oil and petroleum products to the global market while simultaneously reducing the profits that the Russian Federation earns from oil following its aggressive war against Ukraine, which inflated global energy prices.