Russia’s Sovcomflot and 14 tankers linked to its operations have found themselves on the US sanctions list as part of Washington’s fresh bid to further stifle Moscow’s attempts to skirt a price cap on crude exports.
The sanctions against the state-run shipping giant are for “operating or having operated in the marine sector of the Russian Federation economy,” the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), said.
The Group of 7 Nations, the EU and Australia agreed in 2022 to cap Russia’s oil export prices at $60 per barrel, which led to an increasing number of the so-called shadow tankers. Sovcomflot had already been sanctioned by Australia, Canada, New Zealand and the UK and faced EU restrictions.
“Today, we take the next step by targeting Russia’s largest state-owned shipping company and fleet operator, dealing a huge blow to their shadow operations,” said deputy secretary of the treasury Wally Adeyemo.
The treasury’s latest oil price cap enforcement action, which has seen nearly 30 tankers sanctioned, blocks Sovcomflot’s access to US-owned property and prevents US individuals and firms from doing business with them.
OFAC has issued a general licence allowing the offloading of crude oil or other cargo from the 14 sanctioned tankers for 45 days and authorising transactions with all other Sovcomflot-owned vessels at this time.
In its latest analysis, the treasury said that the increased sanctions enforcement in recent months is forcing Russia to sell oil at a steeper discount to the international benchmark Brent crude. The discount has widened to about $19 per barrel over the past month, compared with $12 to $13 per barrel in October.
“The price cap on Russian oil continues to serve its twin goals of limiting Kremlin profits while promoting stable energy markets… We are entering the next phase of increasing Russia’s costs in a responsible manner to mitigate risks,” Adeyemo added.
The US on Friday announced its biggest single-day package of Russia sanctions since the invasion of Ukraine two years ago, blacklisting Sovcomflot together with more than 500 individuals and businesses.
The EU and UK also announced a series of new sanctions last week. Fractal Shipping from the UAE and Turkey’s Beks Ship Management were among the high-profile shipping names included in the latest raft of sanctions unveiled by the UK while the headline-grabbing part of the EU’s latest sanctions was the decision to blacklist Chinese and Indian companies who have helped Russia get around EU export controls.
I feel these sanctions are illegal and totally unacceptable. Russia isn’t fighting against itself but against the US and NATO. Sanctioning everything and all things Russian is likened to hitting below the belt in a boxing bout by one opponent to another.
At this rate, if it were possible, the West would even sanction the very air, oxygen, that the Russian breathes.
Who gave the West such rights to bully and suffocate another?
And who gave Putin the right to invade Ukrainian and slaughter innocent men, women and children, rape and steal kids? Get a grip and think
Exactly
And who gave America the same right in Iraq, Libya, Sirya Afghanistan, Somalia, the Balkan’s where by the way they murdered indiscriminately way more women and children Just see the silence of them with the collective punishment in Yemen and in Gaza
Right on brother!
Nothing innocent here,US and Nato provocked Russia using Ukraine and their intention was to sanction Russia if it reacts to their provocation as it happens now. Why you people you act like you do not see who is bullying the world here, the West is the one and only
You should get a grip and source your information instead of regurgitating tabloid nonsense.
Rússia will continue to go around these silly, stupid sanctions!
The only person who hit below the belt was Rusdia when it started stealing land and breaching international laws
The Russians(Putin) have to pay dearly for the Ukrainian aggression.
Nothing innocent here,US and Nato provocked Russia using Ukraine and their intention was to sanction Russia if it reacts to their provocation as it happens now. Why you people you act like you do not see who is bullying the world here, the West is the one and only
They deserve it and you shouldn’t be here dictating like the rat putin we will flatten him I’m surprised we haven’t already it’s sick it’s war crimes, genocide so you support this what a joke
Look Dick, Putin will be looked back on as the greatest Staesman of this century…it is the West that has sacrificed hundreds of thousands of Ukrainian lives for their folly and the only genocide (by definition) is in the Middle East.
The West doesn’t have to do business with Russia if they don’t want simple to understand?
To their detriment and cost…
Why did Putin invade ukraine in the first place
Russia
deserves everything coming its way. Vladmir Putin thinks that he rules the world. Look at the way he brutally and barbarically kills those who oppose his administration. Wish to see more of sanctions after sanctions imposed upon Moscow
Since when has Ukraine been the USA and NATO? What Putaine claims is irrelevant as he is a deluded, paranoid dictator. And a proven liar.
Once again these sanctions will mpact negatively on the USA and Europe. They’re shooting themselves in the foot or worse.
I thing we would off made them befor war Neto this not be happening now u could off may be war work round it now Russia no we not wan to go to war all u have to look at is how it is in eu the way cause off living is seen war hope u ursand me as am not gd with righting
How will they ompact on them?
Russia has been financially bleeding as a result of these sanctions. Try and follow on the latest development in relation to Moscow…Sanctions hit where it hurts most.
You are 100% right 👍
ROFL. Putaine speek.
Yes it’s right ✅
Well said? Purin should not invade other countries.
Because its only American and its alias who should invade they are allowed to kill innocent people as they do now to the Palestine using Esrael but behind that it’s them
The west the eu, Uk and others pushing sanctions as well as keeping a proxy war going is through greed for resources of oil gas rare and precious metals which are in Russian territories, there pushing the proxy war so they can get them on the cheap, don’t forget it was an ex British pm who convinced Ukraine to continue the war. Instead of pushing a war they could sort there own countries out, and stop sticking there nose in where it doesn’t belong. Just stop being greedy for money and power.
ROFL. Putain speak.
The world should avoid doing business with the West, west must do business alone they have done too much damage to many countries using these dam sanctions they control the world with the iron fist ✊. They want everyone to feel them and do the way they want. You cannot believe if its them who provoked Russia and after Russia reacts they sanction Russia they wanted a war between china and Taiwan but it never happened, they are also involved on the war between Gaza and Esrael what kid of people are like that who likes to provoke the world as they do.
West (USA) is like a half blind cyclops sometimes barging about like a bull in a China shop (no pun intended) but the west is the only democracy we have,is rule at the whims of a very very few sometime unstable leaders unmovable better or wanted,good or bad it’s the better of the two.
Haha. Look at this joker. Wait for Indians and PM Narendra Modi.
Sell it while they can new tech one day will make oil obsolete.