US slaps fresh sanctions over Russian oil shipment above price cap

NEW DELHI: The United States on Friday imposed additional sanctions related to the price cap on Russian oil, focusing on three entities and three oil tankers. This action aims to address loopholes in the mechanism designed to penalize Moscow for its involvement in the conflict in Ukraine.
US Treasury Department alleged that those targeted had utilized Western maritime services, including transportation, insurance, and financing while transporting Russian crude oil exceeding the $60-per-barrel price cap.
In December of last year, the Group of Seven wealthy nations, the European Union, and Australia implemented a $60-per-barrel cap on seaborne exports of Russian crude. This mechanism prohibits Western companies from offering services for oil transactions that exceed the specified cap.
According to the Treasury, the vessels NS Champion, Viktor Bakaev, and HS Atlantica transported Russian Urals crude over the $70-per-barrel threshold.
Russia's embassy in Washington did not immediately respond to a request for comment.
According to a statement from the Treasury, the vessels employed "US-person" services during the transportation of Russian-origin oil.
The agency identified Sterling Shipping, based in the United Arab Emirates, as the registered owner of the NS Champion.
The Treasury stated that Streymoy Shipping Limited, based in the UAE, is the registered owner of the Viktor Bakaev, while HS Atlantica Ltd, located in Liberia, is the registered owner of the HS Atlantica.
As of now, Sterling Shipping has not responded to a request for comment, and contacts for the other two companies could not be immediately located.
The sanctions prohibit all property and interests of the mentioned tankers and owners within the United States or under the control of US individuals. Any such assets must be reported to the Treasury's Office of Foreign Assets.
This represents Washington's most recent sanctions move targeting the transportation of oil exceeding the price cap, as the US endeavours to enforce the punitive measures imposed on Russia in response to its invasion of Ukraine last year.
"Enforcement of the price cap on Russian oil is a top priority for the United States and our Coalition partners," Treasury Deputy Secretary Wally Adeyemo said in the statement.
"By targeting these companies and their ships, we are upholding the dual goals of the price cap by restricting Russia’s profits from oil while promoting stable global energy markets."
The Treasury also granted a general license allowing restricted safety and environmental transactions involving the entities under sanctions. This includes transactions essential for the secure docking and anchoring of the vessels subject to the sanctions, and the authorization is effective until February 29.
(With Reuters input)