US Imposes Sanctions For Violations Of Russia Oil Price Cap

The US Treasury Department has said it had put sanctions on three entities based in the United Arab Emirates (UAE) and one tanker registered by Liberia for violating a cap placed on the price of Russian oil by a coalition of Western nations.

The Treasury also said it had taken steps to bar the import of certain categories of diamonds mined in Russia, another step designed to deprive Moscow of revenues following the 2022 invasion of Ukraine.

Report says the price cap imposed in December 2022 by the Group of Seven countries, the European Union, and Australia bans the use of Western maritime services such as insurance, flagging, and transportation when tankers carry Russian oil priced at or above $60 a barrel.

The cap is part of Western sanctions that aim to reduce Russia’s ability to fund its war in Ukraine while keeping oil markets well supplied. Russia has had to invest in a ghost fleet of aging tankers and send oil to consumers like India and China, much further than traditional customers in Europe. Treasury officials say those expenses reduce Moscow’s revenues that it can use for war.

REUTERS/Christopher Ojilere