UNITED STATES NEWS

The US government sanctions two shipping companies for violating the Russian oil price cap

Oct 12, 2023, 6:30 AM

WASHINGTON (AP) — The Treasury Department said Thursday that it has imposed its first set of sanctions on two companies that shipped Russian oil in violation of a multinational price cap.

The United States, along with the European Union, countries in the Group of Seven and Australia, imposed a $60 a barrel limit last year on what Russia could charge for its oil. The cap was designed to deprive the Kremlin of revenue to fund its war in Ukraine, forcing the Russian government either to sell its oil at a discount or divert money for a costly alternative shipping network.

The companies being penalized are based in the United Arab Emirates and Turkey, the department said in a statement.

A ship owned by the Emirates-based company Lumber Marine carried oil priced above $75 a barrel from a Russian port. Separately, a vessel owned by Turkey-based Ice Pearl Navigation ferried oil from Russia priced at $80 a barrel.

Both companies relied on U.S. service providers. As a result of the sanctions, the Biden administration is blocking the companies’ ability to conduct business or access any property or financial interests in the U.S.

A senior treasury official, who briefed reporters on condition of anonymity per department rules, said that the government has usually contacted a ship’s flagging nation and insurer if there is even a suspicion of a violation, leading to the ship losing access to insurance or a country’s registration.

The official said that Russia has tried to build an alternative shipping network to avoid the cap, but that has proved to be expensive, with private analyses indicating that it has cost $35 per barrel of oil.

The administration has argued that the cap has been successful, leading to a 45% drop in Russian oil tax revenue over the past year. The official said the focus of enforcing the cap will be on further increasing costs for Russia’s oil industry so Moscow has less money available to support its military in Ukraine.

The coalition enforcing the price cap also released a set of recommendations to improve compliance within the maritime oil industry. The guidance was aimed at countries as well as private companies. It recommends that all ships have legitimate insurance and rely on industry standard classifications, among other policies focused on stepped-up monitoring of the sector.

United States News

Associated Press

A police officer, sheriff’s deputy and suspect killed in a shootout in upstate New York, police say

LIVERPOOL, N.Y. (AP) — A police officer and a sheriff’s deputy in upstate New York were shot and killed Sunday night in an exchange of gunfire with a suspect, who also was killed, police said. The shooting took place shortly after 8 p.m. in Liverpool, about 6 miles (10 kilometers) north of Syracuse. The Syracuse […]

7 hours ago

Associated Press

Trump’s history-making hush money trial starts Monday with jury selection

NEW YORK (AP) — In a singular moment for American history, the hush money trial of former President Donald Trump begins Monday with jury selection. It’s the first criminal trial of a former commander in chief and the first of Trump’s four indictments to go to trial. Because Trump is the presumptive nominee for this […]

9 hours ago

Tracy Toulou...

Associated Press

How to tackle crime in Indian Country? Empower tribal justice, ex-Justice Department official says

A recently retired director of the Justice Dept. says the federal government hasn't given tribal justice systems equal recognition.

11 hours ago

Speaker of the House Mike Johnson...

Associated Press

House Speaker Mike Johnson says he will push for aid to Israel and Ukraine this week

House Speaker Mike Johnson said Sunday he will try to advance wartime aid for Israel this week, along with funding for Ukraine.

12 hours ago

Associated Press

Semiautomatic firearm ban passes Colorado’s House, heads to Senate

DENVER (AP) — Colorado’s Democratic-controlled House on Sunday passed a bill that would ban the sale and transfer of semiautomatic firearms, a major step for the legislation after roughly the same bill was swiftly killed by Democrats last year. The bill, which passed on a 35-27 vote, is now on its way to the Democratic-led […]

14 hours ago

Follow @ktar923...

Sponsored Content by Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

Sponsored Articles

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

The US government sanctions two shipping companies for violating the Russian oil price cap