top of page
  • Writer's pictureuseyourbrainforex

U.S. imposes sanctions on UAE entities and tanker for violating russian oil price cap


U.S. imposes sanctions on UAE entities and tanker

The U.S. Treasury Department recently announced sanctions on several entities hailing from the United Arab Emirates (UAE) and a Liberia-registered tanker for violating the predetermined price cap on Russian oil, enforced by a coalition of Western nations.


This move underscores a continued effort to clamp down on revenue streams fueling Moscow's activities, particularly in the aftermath of the 2022 invasion of Ukraine.


Specifically, the Treasury Department has targeted three UAE-based entities—Zeenit Supply and Trading DMCC, Talassa Shipping DMCC, and Oil Tankers SCF Mgmt FZCO—alongside the Liberia-registered oil tanker NS Leader as reported by Reuters.


Sanctions imposed freeze any U.S. assets held by these entities and generally prohibit Americans from engaging in transactions with them, amplifying the financial pressure on violators.



Brian Nelson, a Treasury under secretary for terrorism and financial intelligence, emphasized the significance of this action, framing it as a stern warning against flouting the price cap on Russian oil.


The sanctions form part of a broader strategy adopted by the Group of Seven countries, the European Union, and Australia, aiming to curtail Russia's financial resources while ensuring stability in oil markets.


Implemented in December 2022, the price cap prohibits the utilization of Western maritime services—such as insurance, flagging, and transportation—when tankers transport Russian oil priced at or above $60 per barrel.



This restriction, coupled with other sanctions, seeks to diminish Moscow's capacity to sustain its military operations in Ukraine, compelling Russia to resort to unconventional measures like utilizing aging tankers and extending its oil reach to distant markets like India and China.


Treasury officials highlight that these measures impose additional financial burdens on Russia, thereby limiting the funds available for military endeavors.


Notably, since October, the United States has sanctioned approximately 27 tankers for transporting Russian oil above the stipulated price threshold while utilizing Western maritime services, underscoring a consistent enforcement approach.



Furthermore, in alignment with commitments made by the G7 in December, the Treasury has announced restrictions on the import of specific categories of diamonds sourced from Russia.


Effective March 1, the import ban encompasses Russian-origin non-industrial diamonds weighing 1 carat or more, diamond jewelry, and unsorted diamonds, with additional restrictions on non-industrial diamonds mined or extracted in Russia weighing 0.5 carats or more taking effect on September 1.


These measures aim to further limit revenue streams flowing into Russia while bolstering broader efforts to deter destabilizing actions.


09.02.2024



Comments


bottom of page