U.S. imposes new sanctions in response to Russia's violation of oil price cap

"Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) continued to tighten enforcement of the price cap on Russian oil by building on previous actions targeting shipowners and vessels implicated in transporting Russian crude oil above the cap," the statement said.

The OFAC, in coordination with a coalition enforcing price limits, also updated the leadership for implementing the policy on restricting prices for Russian-origin crude oil and petroleum products.

Wally Adeyemo, the Deputy Secretary of the Treasury, stated that these sanctions demonstrate their commitment to upholding the principles of price limitation policies. These policies aim to support stable energy markets while simultaneously reducing Russia's revenue to finance its war against Ukraine.

Entities under sanctions:

• SUN Ship Management D Ltd from the UAE

• Bellatrix Energy Limited from Hong Kong

• Covart Energy Limited from Hong Kong

• Tanker Sanar 15

• Voliton DMCC from the UAE

Sanctions effectiveness

The effectiveness of these sanctions has diminished due to inadequate monitoring and adherence to the oil price restriction policy, allowing Russia to sell its oil at prices higher than the established limit, according to the report.

Additionally, a legal "loophole in oil refining" permits petroleum products manufactured from Russian crude oil to reach countries in other regions of the world. This is particularly relevant to India, which has significantly increased its oil imports from Russia.

It was recently reported that the U.S. government intends to halve Russia's income from oil and gas exports by 2030.

Today, Bloomberg reported that the U.S. is signaling an escalation of measures to ensure compliance with restrictions on oil prices from Russia.