The U.S. Expands Sanctions Against Russian Oil Exports

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury announced on Thursday, November 16, sanctions against three shipping companies that sell Russian crude oil above the price cap set by the global 'Price Cap Coalition.' OFAC's statement noted that three oil tankers are also identified as blocked assets due to transporting Russian crude oil through these companies. The statement emphasized the commitment of the Treasury Department and its international partners to responsibly reduce Russian oil revenues that could finance its brutal invasion of Ukraine. U.S. Treasury Deputy Secretary Wally Adeyemo stated, 'Shipping companies and tankers involved in Russian oil trade must fully understand that they are accountable for complying with the price cap regulations of the global coalition.' He added that this action aims to reduce the profits that the Kremlin uses to finance its illegal war and that they will not relent in pursuing those who facilitate evasion of the established price cap. The United States is part of an international coalition of countries, including G7 members, the European Union, and Australia, that have agreed to ban imports of crude oil and petroleum products from the Russian Federation. These countries have also agreed to limit a wide range of services related to the maritime transport of crude oil and petroleum products from the Russian Federation unless the oil is sold at or below the price cap set by this coalition or at a price for which a license has been issued. This policy is known as the 'price cap.' The price cap set in December 2022 for Russian crude oil was $60 per barrel. The U.S. Treasury has designated the tankers 'Kazan,' 'Lihovsky Prospect,' and 'NS Century' as blocked assets for exporting Russian crude oil above $60 after the cap was established. OFAC stated that these three tankers were using personal services in the United States. According to OFAC, the Kazan and Progress shipping companies, based in the United Arab Emirates, and the Galleon Navigation company, also based in the UAE, are the registered owners of these three tankers. Regarding the consequences of the new sanctions, the U.S. Treasury stated that all assets and interests in the assets of individuals who used their services in the United States for exporting Russian oil above the price cap must be blocked and reported to OFAC. Additionally, any entity that directly or indirectly owns 50 percent or more of the assets or interests in the assets of these individuals will also be blocked. Furthermore, 'all transactions by these individuals in the U.S. (or in transit) from the U.S. are prohibited unless authorized by OFAC.' Meanwhile, the U.S. State Department, on Thursday, identified two individuals and 12 entities from the western Balkans linked to Russia's malign influence in the region and the resulting corruption. The State Department named 'Misa Vucic,' a Serbian politician, for his role in the illegal annexation referendum of Russian-occupied territories in Ukraine in September 2022 organized by the Kremlin. The State Department also included Nenad Popovic, a former Serbian government official, and related companies on this list. According to the statement, Nenad Popovic has close ties to the Kremlin and uses his network for corruption and personal wealth creation. Simultaneously, the U.S. Treasury sanctioned eight individuals and six entities in Bosnia and Herzegovina, Montenegro, and North Macedonia that directly facilitate Russian influence or benefit from it for their corrupt financial activities. The U.S. has imposed 130 new sanctions aimed at 'countering Russia's war machine.' The U.S. has sanctioned several individuals and entities linked to Hamas and several members of the Islamic Revolutionary Guard Corps. The U.S. has also sanctioned 20 individuals and entities linked to Iran's missile and drone program. Zelensky stated that the initiative in the Black Sea has fallen to Ukraine. Russian missile attacks on Ukraine have left several dead. The UK has targeted Russia's gold and oil sectors with new sanctions. Iran has expressed readiness to assist in selling gas to Russia amid a 'budget deficit.'