The U.S. Treasury has taken further action against companies and ships that have violated the multinational price cap by using American service providers to transport Russian crude oil. The Treasury’s Office of Foreign Assets Control has imposed sanctions on three firms based in the United Arab Emirates and has blocked three ships that used U.S. service providers to transport Russian crude oil above the $60 price cap. These sanctions prohibit the targeted individuals and companies from accessing U.S. property and bank accounts, as well as conducting business with Americans. Additionally, the ships have been blacklisted from using U.S. service providers for transporting goods.
Last year, the U.S., along with the EU, countries in the Group of Seven, and Australia, implemented a $60 a barrel limit on the price Russia could charge for its oil. The purpose of this cap is to deprive the Kremlin of revenue to fund its war in Ukraine, thereby pressuring the Russian government to either sell its oil at a discounted price or find a more expensive alternative shipping network. In October, the Treasury initially imposed sanctions on two companies that violated the multinational price cap by transporting Russian oil.
Wally Adeyemo, the deputy secretary of the Treasury, emphasized the commitment to maintaining market stability despite Russia’s conflict with Ukraine. Adeyemo stated, “We are committed to maintaining market stability in spite of Russia’s war against Ukraine, while cutting into the profits the Kremlin is using to fund its illegal war and remaining unyielding in our pursuit of those facilitating evasion of the price cap.”
In addition to the sanctions on companies and ships, the Treasury also announced a separate set of sanctions on individuals and entities across the Balkans. These include Bosnian politicians, influential figures involved in organized crime in Montenegro, and executives in North Macedonia who have ties to sanctioned Russians. The individuals and entities have been accused of corruption and enabling Russian malign influence in the region.
Brian Nelson, the undersecretary for terrorism and financial intelligence at the Treasury, highlighted Russia’s continued use of its influence in the Western Balkans to hinder the region’s integration into international institutions and organizations. Nelson stated, “Russia has continued to use its influence in the Western Balkans to stymie the region’s integration into international institutions and organizations, as well as leverage key jurisdictions to facilitate its aggressive destabilizing activities.”
