The United States imposed sanctions against two companies for circumventing the price ceiling for Russian oil

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions against two companies for transporting Russian oil at a price above the limit imposed by the G7 countries, reported on the Ministry of Finance website.

UAE-based Lumber Marine SA and Turkish Ice Pearl Navigation Corp. were subject to restrictions. The tanker SCF Primorye, owned by Lumber Marine, claims the US Treasury, was transporting Russian crude oil, which was sold at a price of more than $75 per barrel. The tanker of the Turkish company Yasa Golden Bosphorus was transporting oil at $80/barrel. Both vessels allegedly used American service providers when transporting oil of Russian origin.

As a result of these restrictions, all assets of these companies in the United States or in the possession of US citizens will be blocked. In addition, any organizations that are 50% or more directly or indirectly owned by one or more blocked individuals are also blocked. The department classified both tankers as “blocked property.”

“These actions underscore the commitment of the Treasury Department and its international partners to responsibly reducing the Russian government’s oil profits and limiting the Russian military machine,” it said.

The price ceiling of $60 per barrel came into force on December 5, along with a ban on Russian oil supplies by sea. For petroleum products, the restriction is valid from February 5, 2023. In addition to the EU, the G7 countries and Australia have joined the price limit.

In response, Russian President Vladimir Putin signed a decree that provides for a complete ban on the supply of Russian oil and petroleum products to foreign companies and individuals if the contracts directly or indirectly provide for a price limit mechanism. Initially, the document was valid from February 1 to July 1, but at the end of June it was extended until December 31, 2023.

At the end of September the USA extended export sanctions against Russian companies “Aeroflot“, Azur Air and Utair for violating export control measures introduced in response to a special operation in Ukraine. In the middle of the same month, the US sanctions list included included Russian automakerAvtoVAZ“, state company “Avtodor” and “Moskvich”, engineering group “Transmashholding“, engine-building company “Saturn”, etc.