The U.S. on Thursday hit a United Arab Emirates shipping firm with sanctions after it transported Russian crude oil above the $60 per barrel price cap. This is Treasury’s first oil price cap enforcement action of 2024 — imposed on Hennesea Holdings Limited and its 18 vessels that the U.S. Treasury now considers blocked property. U.S. firms and people can no longer conduct business with them.
Quick Read
- U.S. Sanctions UAE Shipping Firm: The United States has imposed sanctions on Hennesea Holdings Limited, a United Arab Emirates-based shipping company, for transporting Russian crude oil above the $60 per barrel price cap.
- Impact on Hennesea Holdings and its Fleet: The sanctions involve 18 vessels belonging to Hennesea Holdings, which are now considered blocked property. This means U.S. individuals and companies are prohibited from doing business with them.
- Treasury Department’s Stance: Treasury Deputy Secretary Wally Adeyemo emphasizes that the action demonstrates the U.S.’s commitment to enforcing the oil price cap and warns of consequences for violations.
- Global Oil Price Cap Policy: In 2022, the United States, European Union, G7 countries, and Australia implemented a price cap of $60 per barrel on Russian oil. The measure aims to limit Russia’s revenue from oil sales, which could fund its military activities in Ukraine.
- Enforcement and Previous Actions: This is the first enforcement action of 2024 related to the oil price cap. Previously, firms in the UAE, Hong Kong, and Turkey have been targeted for similar violations.
- Objective of the Price Cap and Sanctions: The price cap is part of a broader strategy to pressure Russia economically due to its invasion of Ukraine. The allied nations hope to force Russia to sell oil at a discount or invest in an alternative and costly shipping network.
- Sanctions Against Russia: Alongside the oil price cap, Russia has been subjected to thousands of sanctions affecting various sectors, including banking, technology, and manufacturing. These sanctions also target individuals with government connections.
The Associated Press has the story:
US sanctions a UAE shipping firm for allegedly violating Russian oil price cap
Newslooks- WASHINGTON (AP) —
The U.S. on Thursday hit a United Arab Emirates shipping firm with sanctions after it transported Russian crude oil above the $60 per barrel price cap.
This is Treasury’s first oil price cap enforcement action of 2024 — imposed on Hennesea Holdings Limited and its 18 vessels that the U.S. Treasury now considers blocked property. U.S. firms and people can no longer conduct business with them.
“Today’s actions once again demonstrate that anyone who violates the price cap will face the consequences,” said Treasury Deputy Secretary Wally Adeyemo. “No one should doubt our coalition’s commitment to stopping those who help the Kremlin.”
A representative from Hennesea Holdings was not immediately available for comment.
https://www.newslooks.com/trump-from-new-hampshire-ive-been-indicted-more-than-al-capone/ imposed a $60 a barrel limit in 2022 on Russian oil.
Any purchases above the cap would violate the agreed-upon policy. The cap was designed to deprive the Kremlin of revenue to fund its war in Ukraine, forcing the Russian government either to sell its oil at a discount or divert money for a costly alternative shipping network.
Last year, firms across the United Arab Emirates, Hong Kong and Turkey were identified for economic sanctions based on alleged violations of the price cap.
The price cap was rolled out to equal parts skepticism and hopefulness that the policy would stave off Russian President Vladimir Putin’s invasion of Ukraine.
In addition to the price cap, the allied nations have hit Russia with thousands of sanctions throughout the war, which enters its third year next month. The sanctions are aimed at bank and financial transactions, technology imports, manufacturing and Russians with government connections.
