US Blacklists 14 Russian Oil Tankers, Imposes Price Cap

The United States blacklisted 14 Russian oil tankers on Friday, attempting to reduce Moscow’s petroleum revenue by imposing a price restriction imposed by the West following the Ukraine incursion.

The Treasury Department issued sanctions on Sovcomflot, giving it 45 days to discharge oil or other cargo from 14 of its ships before enforcing them.

The price ceiling is intended to minimize Kremlin profits while maintaining supply to energy markets.

In a statement, Wally Adeyemo, Deputy Treasury Secretary, stated, “Today, we take the next step by targeting Russia’s largest state-owned shipping company and fleet operator, dealing a huge blow to their shadow operations”.

“We are entering the next phase of increasing Russia’s costs responsibly to mitigate risks”, Adeyemo added.

Previously, a coalition of the Group of Seven leading economies, the European Union, and Australia established a price cap of $60 per barrel of Russian crude.

However, a senior Treasury official told media Friday that the Kremlin has attempted to circumvent the cap by investing in a shadow fleet of energy market trading infrastructure.

This operated outside of coalition services, allowing Moscow to charge higher prices for its oil in the summer and autumn.

Since the price restriction was implemented, Russia’s revenue has fallen.

The actions take place on the eve of the second anniversary of Russia’s invasion of neighboring Ukraine.

Also read: UK PM Rishi Sunak: Tyranny Never Triumphs In Ukraine War