US Imposes Sanctions on 4 Entities for Carrying Russian Oil Priced Above the Western Price Cap

By Jace Dela Cruz

Feb 09, 2024 02:14 AM EST

The US Treasury Department has imposed sanctions on three entities based in the United Arab Emirates (UAE) and a Liberian tanker for violating a price cap placed on Russian oil by a coalition of Western countries.

According to Reuters, the Treasury also had taken steps to prohibit the import of certain types of diamonds mined in Russia. These moves are reportedly part of a broader effort to curb Russia's revenues after the 2022 invasion of Ukraine.

(Photo : MUMEN KHATIB/AFP via Getty Images)
A picture taken during a guided tour by the US Navy (NAVCENT) shows the Japanese oil tanker Kokuka Courageous off the port of the Gulf emirate of Fujairah on June 19, 2019.

Violating the Price Cap on Russian Oil

According to the Treasury's Office of Foreign Assets Control (OFAC), four entities have been sanctioned for their involvement in a scheme to violate the price cap on Russian oil imposed by the Group of Seven countries, the European Union, and Australia in December 2022.

"Russia's own top energy official admits that the coalition's price cap and our sanctions have led to widening discounts on Russian oil, limiting the revenue the Kremlin relies on for its illegal war," Brian Nelson, a Treasury Under Secretary for Terrorism and Financial Intelligence, said in a statement

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Entities Sanctioned by US Treasury

In the statement, the Treasury Department said it had imposed sanctions on UAE-based entities Talassa Shipping DMCC, Zeenit Supply and Trading DMCC, and Oil Tankers SCF Mgmt FZCO, as well as on NS Leader, a Liberia-registered oil tanker.

These entities reportedly carried Russian oil priced above $60 per barrel. The sanctions freeze the US assets of the targeted entities and generally prohibit Americans from dealing with them.

"Today's action against vessels violating the price cap on Russian oil should serve as a continued warning that we can and will enforce violations of the cap," Nelson noted.

According to Reuters, since last October, the US has already imposed sanctions on 27 tankers for carrying Russian oil priced at or above $60 a barrel while using a Western maritime service.

The OFAC has also issued two determinations that ban the import of Russian-origin non-industrial diamonds of 1 carat or more, diamond jewelry, and unsorted diamonds beginning March 1, and the import of Russia's non-industrial diamonds weighing 0.5 carats or more starting September 1.

READ MORE: Russia Lacks Nearly 5 Million Workers This Year as Ukraine War Drains Its Labor Force: Report

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