The US Treasury Department’s Office of Foreign Assets Control (OFAC) on Thursday announced sanctions targeting two tanker owners involved in shipping Russian oil above established price limits.
In recent developments, oil prices saw a significant rise, rising 4% today, following the United States’ decision to intensify sanctions against Russian crude oil exports.
According to reportsBrent crude futures, the international benchmark for expiry in December, rose 3.9% to $89.34 a barrel, while front-month November US West Texas Intermediate crude futures were up 4.1% to trade at $86.28 a barrel.
Sanctions to curb Russian oil profits
The surge in oil prices can be attributed to the US’s recent move to impose sanctions on two shipping companies accused of violating G7 oil price limits, curbing the Kremlin’s financial resources to maintain a stable supply of Russian crude. There is a mechanism designed to hold.
To understand the significance of this move, it is important to recall December 5 last year when the Group of Seven (G7), Australia and the European Union (EU) imposed a $60 per barrel price ceiling on Russian imports. Oil.
The limit was designed to control Russia’s fossil fuel export revenues, which were believed to be contributing to its continued confrontation in Ukraine. In a coordinated effort, the EU and Britain simultaneously banned seaborne imports of Russian crude.
Taking the measures further, the US Treasury Department’s Office of Foreign Assets Control (OFAC) announced The sanctions were imposed on Thursday targeting two tanker owners involved in shipping Russian oil above established price limits.
The YasaGolden Bosphorus tanker, owned by Turkey-based Ice Pearl Navigation Corp, was found to be transporting Russian crude at a price above $80 a barrel after the G7-imposed price cap came into effect. Another ship, SCF Primary, owned by UAE-based Lumber Marine SA, was noted to be carrying Russian oil at prices above $75 a barrel from a Russian port after the price cap mechanism was imposed.
Significance of sanctions on oil prices
These sanctions reflect the United States’ unwavering commitment to reducing Russia’s resources supporting its military campaign in Ukraine, while also enforcing established price limits.
“We are committed to implementing a price cap policy that has two goals: reducing the oil profits on which Russia depends to wage its unjust war against Ukraine and reducing the unrest caused by Russia’s unprovoked invasion of Ukraine. Keeping global energy markets stable and well supplied despite. We will continue to take action to achieve these two goals,” said Deputy Secretary of the Treasury Wally Adeyemo.
In addition to these recent restrictions, the Price Cap Coalition has issued an advisory aimed at both government and private sector entities involved in maritime trade of crude oil and refined petroleum products.
The advisory provides recommendations for best practices and highlights their commitment to promoting responsible practices in the industry, preventing and disrupting sanctioned trading, and enhancing compliance with price limits.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves writing about real-life applications of blockchain technology and innovations to promote general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain media and sites.
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