Sanctioned Turkish and UAE Shipping Companies Violate Russian Oil Price Caps
The Department of the Treasury has taken action against two shipping companies, one from Turkey and the other from the United Arab Emirates (UAE), for allegedly violating price caps on Russian oil. These international price caps were put in place to curb Russia’s energy profits following the invasion of Ukraine. The US, European Union, Australia, and the Group of 7 jointly implemented the $60 limit on Russian oil sales.
According to the Office of Foreign Assets Control (OFAC), the Turkish company, Ice Pearl Navigation, sold Russian oil at $80 per barrel, surpassing the established cap. Similarly, UAE-based Lumber Marine SA priced Russian oil at $75. As a consequence, both companies, who utilized US service providers, will be prohibited from conducting business in the United States and accessing their assets within the country.
Treasury officials emphasize that the price cap, in effect since 2022, has already inflicted a 45% blow to Russia’s oil industry in terms of tax revenue. Its primary aim is to diminish Russia’s resources for waging war against Ukraine while maintaining stability and adequate energy supplies in global markets. Moreover, the cap also bans western countries from furnishing maritime and financial services for Russian exports exceeding the established limits.
Deputy Secretary of the Treasury, Wally Adeyemo, affirms that this action underscores the unwavering commitment to reducing Russia’s financial means to support its conflict with Ukraine. Adeyemo adds, We will continue to take actions to achieve these two goals: reducing the oil profits upon which Russia relies to wage its unjust war against Ukraine and keeping global energy markets stable and well-supplied despite turbulence caused by Russia’s unprovoked invasion of Ukraine.
Yasa Holding, the operator of the Turkish vessel Golden Bosphorus, asserts that the ship is currently chartered to ExxonMobil for a duration of three to five months. The Hill has sought comment from ExxonMobil regarding the sanctions.
This move by the Department of the Treasury serves as a clear message of intent to curtail Russia’s financial capabilities for their actions in Ukraine. It exemplifies the ongoing commitment of the international community to maintain a balanced and stable global energy market while addressing geopolitical conflicts.
