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

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…

Support independent journalism in Ukraine. Join us in this fight.
Freedom can be costly. Both Ukraine and its journalists are paying a high price for their independence. Support independent journalism in its darkest hour. Support us for as little as $1, and it only takes a minute.
visa masterCard americanExpress

News Feed

Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
9:15 AM

Lithuania to join Czech-led ammunition initiative for Ukraine.

Lithuania will contribute to the Czech-led allied initiative to supply Ukraine with hundreds of thousands of artillery rounds from outside of Europe, Lithuanian Prime Minister Ingrida Simonyte confirmed on March 4 after a phone call with her Czech counterpart, Petr Fiala.
3:39 AM

Kirby: Putin taking advantage of delays in US aid.

Russian President Vladimir Putin is taking advantage of delays in U.S. aid to Ukraine to further Russian military efforts, U.S. National Security Council spokesperson John Kirby said at a press conference on March 4.
11:03 PM

Ukraine, Spain start talks on security guarantees.

Ukraine and Spain began negotiations on a bilateral agreement on security guarantees under the Group of Seven (G7) Joint Declaration of Support for Ukraine, the Presidential Office reported on March 4.
8:51 PM

Zelensky replaces Support Forces commander.

President Volodymyr Zelensky dismissed Dmytro Hereha as the commander of Ukraine's Support Forces, replacing him with Oleksandr Yakovets, according to his decrees published on March 4.
MORE NEWS

Editors' Picks

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

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

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