The Biden Administration Imposes Sanctions on Tanker Owners for Carrying Russian Oil Above Price Cap
Introduction
The Biden administration has taken action against two owners of tankers that violated the G7 price cap of $60 a barrel for Russian oil. The United States, along with other G7 countries and Australia, implemented the cap last year to decrease Russia’s oil revenues as part of sanctions for its war on Ukraine. The aim is also to maintain a steady flow of oil to the markets.
Turkey-Based Tanker Owner
The U.S. Treasury has sanctioned Ice Pearl Navigation SA, a Turkey-based company that owns the Yasa Golden Bosphorus tanker. The Treasury states that this tanker transported Russian ESPO crude priced above $80 per barrel, after the cap was implemented in December last year. By imposing these sanctions, the U.S. aims to increase the cost for Russia and weaken its ability to sustain its war efforts.
United Arab Emirates-Based Tanker Owner
Lumber Marine SA, a company based in the United Arab Emirates, also faced sanctions from the U.S. Treasury. The owner of the SCF Primoyre tanker, Lumber Marine SA, was found to be carrying Novy Port Russian crude above $75 per barrel. The U.S. Treasury believes that these actions will further raise costs for Russia and diminish its capability to continue the war.
Impact of Sanctions
The U.S. Treasury official, speaking to reporters, stated that these measures will not only increase costs for Russia but also weaken its ability to sustain the war. The intention is to apply additional actions in the coming weeks and months to further escalate the costs incurred by Russia.
Service Providers and Port Calls
It is worth noting that both the SCF Primorye and the Yasa Golden Bosphorus tanker utilized U.S.-based service providers during the transportation of Russian origin oil, despite conducting port calls in Russia.
The Biden administration’s imposition of sanctions on tanker owners carrying Russian oil above the G7 price cap demonstrates their commitment to addressing Russia’s actions in Ukraine. These measures aim to increase costs for Russia and limit its ability to sustain the war, ultimately seeking a peaceful resolution to the conflict.
