Skip to content
Edit post

US sanctions three companies that help Russia circumvent oil price cap

by Nate Ostiller December 1, 2023 8:21 PM 2 min read
A view from Russian oil company Tatneft in Tatarstan, Russia, on June 4, 2023. (Alexander Manzyuk/Anadolu Agency via Getty Images)
This audio is created with AI assistance

Support independent journalism in Ukraine. Join us in this fight.

Become a member Support us just once

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced sanctions on Dec. 1 against three shipping companies for transporting Russian oil above the $60 price cap imposed by the U.S. and its allies.

Two of the three companies, Sterling Shipping Inc. and Streymoy Shipping Limited, are registered in the United Arab Emirates, and the third, HS Atlantica Limited, is based in Liberia.

Can Russia afford to commit to a years-long war?
When Russian President Vladimir Putin launched an all-out war against Ukraine, U.S. intelligence claimed that Russian forces planned to sweep Kyiv within days. More than 13 months on, Ukraine’s defenses still stand firm. But Ukrainians are now faced with a different threat – the Kremlin appears to…

The companies operated vessels using services from countries of the Price Cap Coalition, to transport Russian oil above $60 per barrel, thereby violating the established terms of use.

“Enforcement of the price cap on Russian oil is a top priority for the United States and our coalition partners,” said Deputy Secretary of the Treasury Wally Adeyemo. “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 Financial Times reported on Nov. 14 that the vast majority of Russian oil has been selling above the price cap.

According to the officials, the price cap initially saw some success after it was first introduced in December 2022, but Russia has since found ways to bypass it, and the price per barrel has likely returned on average to its pre-war status of roughly $80 per barrel.

In addition to the imposition of the price cap, the U.S. and its allies applied a number of other measures in an attempt to force compliance, such as "cutting off access to Western services like shipping and insurance unless traders abided by the $60 limit."

Nonetheless, Russia has found ways to circumvent these restrictions, in large part by simply operating without insurance and through the usage of a "ghost fleet" of hundreds of aging oil tankers.

Investigative Stories From Ukraine: Russia receives Ukraine-made aviation spare parts despite war
Welcome to Investigative Stories from Ukraine, the Kyiv Independent’s newsletter that walks you through the most prominent investigations of the past week. If you are fond of in-depth journalism that exposes war crimes, corruption, and abuse of power across state organizations in Ukraine and beyond…

News Feed

10:47 PM

Kremlin spokesman threatens Europe over decision to host US missiles.

"Our country is in the crosshairs of American missiles located in Europe. We've been through all this before," he said in an interview with Russian TV propagandist Pavel Zarubin. "We have enough potential to deter these missiles. But the capitals of these states are potential victims."
Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
9:18 PM

Chief emergency worker among two killed in Kharkiv Oblast.

Half an hour after emergency workers arrived at the scene, Russian troops launched a second attack on the same location, Artem Kostyria, head of the State Emergency Situations Service's branch in Kharkiv Oblast, and police sergeant Oleksiy Koshchii.
5:24 PM

Russian kamikaze drone flies deep inside Belarus, whereabouts unknown.

The Belarusian Hajun monitoring group reported it had flown 250 kilometers "over Gomel and Zhlobyn, entered the Mogilev region, and then the Minsk region." It also said a Belarusian Mi-24 helicopter and Su-30 fighter jet were scrambled to intercept the drone before it "presumably flew to Vitebsk."
3:37 PM

US developing new 'extended-range' missile for Ukraine's Air Force.

The new weapon to be developed is an Extended-Range Attack Munition (ERAM), that aims to be a low-cost, quick to produce air-launched missile with a range of around 460 kilometers. The manufacture of the weapon is intended to begin no later than two years after the awarding of the contract and up to 1,000 are to be produced each year.
3:19 PM

Children's theater goes underground in Kharkiv

In the heart of Kharkiv, Kharkiv Theater for Children and Youth performs in bomb shelters under constant threats of Russian attacks. The Kyiv Independent visited one of the theater's performances in late June to meet the dedicated actors and their no less dedicated audience.
10:46 AM

Poland considers downing Russian missiles over Ukraine, FM says.

Polish Foreign Minister Radoslaw Sikorski said the problem for Warsaw is that once downed, the debris could pose a threat to Poles and the country's property. "At this stage, this is an idea. What our agreement said is we will explore this idea," he added.
1:56 AM  (Updated: )

Trump shot at during Pennsylvania rally.

At a rally in Pennsylvania, gunshots were reportedly fired at former U.S. President Donald Trump, prompting security staff to rush him off stage.

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
* indicates required
* indicates required
* indicates required
* indicates required
* indicates required


* indicates required
* indicates required


* indicates required
* indicates required


* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.