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Shipping Companies Face US Sanctions for Violating Russian Oil Price Cap

Video Credit: Wibbitz Top Stories - Duration: 01:30s - Published
Shipping Companies Face US Sanctions for Violating Russian Oil Price Cap

Shipping Companies Face US Sanctions for Violating Russian Oil Price Cap

Shipping Companies Face, US Sanctions for Violating , Russian Oil Price Cap.

On October 12, the United States Treasury Department announced that it has approved sanctions on two companies that violated a multinational price cap.

On October 12, the United States Treasury Department announced that it has approved sanctions on two companies that violated a multinational price cap.

ABC reports that the U.S., the European Union, and other countries in the G7 agreed to impose a $60-a-barrel limit in 2022.

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The move was an attempt to reduce the Kremlin's revenue stream for funding Russia's war on Ukraine.

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According to the Treasury Department, the two companies facing sanctions are based in the United Arab Emirates and Turkey.

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ABC reports that Lumber Marine, an Emirates-based company, shipped Russian oil priced above $75 a barrel.

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In a separate incident, a Turkey-based company, Ice Pearl Navigation, reportedly carried Russian oil priced at $80 a barrel.

The sanctions will block the companies' access to any U.S. property or financial interests, while also preventing them from conducting any U.S. business.

The Biden administration has stressed the success of the price cap, citing a 45% reduction in Russian oil tax revenue since it was put into place.

ABC reports that an unnamed senior treasury official said that Russia has attempted to build an alternative shipping network in response to the price cap.

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ABC reports that an unnamed senior treasury official said that Russia has attempted to build an alternative shipping network in response to the price cap.

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The official reportedly added that enforcing the cap will serve to further increase Russia's oil industry costs to reduce funds available for its war efforts in Ukraine.

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The official reportedly added that enforcing the cap will serve to further increase Russia's oil industry costs to reduce funds available for its war efforts in Ukraine.


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Credit: Oneindia    Duration: 03:03Published

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