The US imposes sanctions on Russian oil tankers.

On November 16, the US Treasury Department imposed sanctions on shipping companies and vessels that received Russian oil shipments exceeding the G7 price ceiling.

In its announcement, the U.S. Treasury Department stated that it was sanctioning three companies based in the United Arab Emirates (UAE) and three oil tankers they own. These are Kazan Shipping Incorporated, Progress Shipping Company Limited, and Gallion Navigation Incorporated. The three oil tankers named are Kazan, Ligovsky Prospect, and NS Century.

US officials allege these ships were involved in transporting Russian crude oil priced above $60 a barrel. The ships are believed to have used American services when transporting crude oil originating from Russia.

Last year, the G7 and Australia agreed to cap the price of Russian oil at $60 a barrel. The goal was to limit Russia's revenue from crude oil exports, following its military campaign in Ukraine.

The ban requires Western companies not to provide insurance, loans, and shipping services for Russian oil exported by sea if the selling price exceeds $60 per barrel. Officials explain that this ban will still allow Russian crude oil to reach the market, but will limit the country's revenue from oil exports.

A Russian oil tanker off the coast of Evia (Greece). Photo: Reuters — A Russian oil tanker off the coast of Evia (Greece). Photo: *Reuters*

Although the price ceiling has been in place for almost a year, this year's high oil prices and the increased number of companies willing to transport Russian oil mean that a large portion of Russian oil is now trading above the ceiling price.

"Shipping companies and oil tankers involved in transporting Russian oil are using services from suppliers in countries participating in the price ceiling. They need to understand that we will force them to comply," U.S. Deputy Treasury Secretary Wally Adeyemo said in a statement.

Under the sanctions, the US assets of these companies will be frozen. Americans will also be prohibited from doing business with these companies.

Brent crude oil prices this year briefly approached $100, due to supply restrictions imposed by the Organization of Petroleum Exporting Countries and its allies (OPEC+). This limited the impact of price caps. However, sources close to Reuters indicate that countries may further tighten regulations to make price caps more effective.

According to a report earlier this week by the International Energy Agency (IEA), Russia's exports of crude oil and petroleum products fell by 70,000 barrels per day in October, to 7.5 million barrels a day.

They estimate that Russia's export revenues will fall by $25 million, to $18.34 billion. Even so, the prices of Russian crude oil and oil products remain mostly above their ceiling.

Ha Thu (according to Reuters)

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