The United States has imposed sanctions against a shipping company based in the United Arab Emirates (UAE) for violating the $60-per-barrel price cap on Russian crude oil exports.
The Treasury said in a statement released on Thursday that the Office of Foreign Assets Control (OFAC) had imposed sanctions on Hennesea Shipping Co Ltd, which it said was the beneficial owner of 18 mostly older tankers acquired in late 2022.
“The US Department of the Treasury’s OFAC is taking its first oil price cap enforcement action of 2024, targeting a shipping company linked to a price cap violation,” the statement from the Treasury read.
Deputy Secretary of the Treasury Wally Adeyemo said, “Today’s actions once again demonstrate that anyone who violates the price cap will face the consequences.”
“No one should doubt our coalition’s commitment to stopping those who help the Kremlin.”
The HS Atlantica, one of the vessels owned by Hennesea, was previously identified by the Treasury for transporting Russian-origin crude oil that exceeded the $60 cap.
The objective of the price limit on Russian crude oil, which was implemented by the G7 in December 2022, is to reduce the funds accessible to Russia amid the conflict in Ukraine. This will be achieved by permitting Western-provided insurance and other services solely on shipments that are priced below $60 per barrel.
“The price cap is intended to maintain a reliable supply of crude oil and petroleum products to the global market while reducing the revenues the Russian Federation earns from oil after its own war of choice against Ukraine inflated global energy prices,” the Treasury statement said.
The decision is said to block Hennesea’s dollar-based transactions, which will place the firm on the Specially Designated Nationals list.
“All property and interests in property of (Hennesea) that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC.,” the Treasury stated.
Washington first banned the violators of the price cap in October 2023, targeting two companies and two of their tankers. Several other entities and vessels have been subject to sanctions over cap violations since.
The European Union has also joined the sanctions campaign.
