U.S Sends Notices To Shipping Companies In 30 Nations Suspected Of Violating Sanctions On Russian Oil

A source who has reviewed the documents said that the US Treasury Department has written notifications to vessel management companies asking for information on 100 boats suspected of breaking sanctions imposed by the West on Russian oil.

Oil Sanctions — Image for representation purposes only

The notices, which were delivered by the Office of Foreign Assets Control to vessel management firms in about 30 nations on Friday, are the most significant step taken by the US since Washington and its allies levied a price cap targeted at limiting oil revenues to Moscow as penalty for its invasion of Ukraine, per the source.

The Treasury Department declined to comment on the allegations. A spokesperson from the Treasury Department said that while they do not confirm or comment on inspections or enforcement actions, the Treasury is dedicated to enforcing a price cap and reducing Russia’s resources for the war against Ukraine.

Last December, the Group of Seven affluent countries, the European Union, and Australia put a $60 per barrel restriction on seaborne Russian crude shipments.

It prohibits Western firms from providing services like transportation, insurance, and financing for oil supplied above the cap.

Because of this year’s rise in global oil prices, much of Russia’s oil has traded over the quota. However, US officials say the cap has imposed additional expenses on Russia by compelling it to rely on a “ghost fleet” of old tankers, lengthier voyages, and non-Western maritime services, reducing the money it can spend on the war.

The United States also levied sanctions on the owners of two vessels that carried Russian oil valued above the cap last month, marking the first serious enforcement of the law.

Per a source with knowledge of the latest notices, some of the vessels under examination had a role in lifting Russian oil from the port of Kozmino. In contrast, others were loaded at the Gulf of Finland port of Primorsk.

In April, the US Treasury warned US corporations about suspected Russian petroleum price cap evasions via the Eastern Siberia Pacific Ocean pipeline and ports across eastern Russia.

According to a source familiar with the notices, one of the firms that was given a request seeking details was Beks Shipping, located in Turkey. Reuters was unable to reach Beks by telephone for comment immediately. Other companies were not named by the source.

Per the source, requests for information are a common phase in sanctions investigations and are aimed at obtaining details such as the companies that hired certain vessels and/or acquired the oil they transported.

The price cap reportedly has shifted global markets since China and India buy Russian oil at a discount. Historically, much of this oil was exported to Europe and other markets.

Reference: Investing.com

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