US sanctions three more shippers over Russian oil price cap violations

The US Treasury sanctioned three more firms and vessels for violating the $60-per-barrel price cap on Russian oil, bringing the total number of enforcement actions to eight.

Two companies based in the United Arab Emirates — Sterling Shipping Incorporated and Streymoy Shipping Limited — were sanctioned, as well as Liberia-based HS Atlantica Limited. The ships owned by the companies — NS Champion, Viktor Bakaev and HS Atlantica — are accused of carrying Russian oil priced above $70 per barrel after the price cap took effect last year. 

Two of the three ships sanctioned Friday are beneficially owned by Sovcomflot PJSC, the Russian shipping company in which the government is the largest shareholder. Of the eight vessels sanctioned for breaching the price cap so far, six are beneficially owned by the company, according to data compiled by Bloomberg.

Enforcing the cap is “a top priority for the United States and our Coalition partners,” Deputy Treasury Secretary Wally Adeyemo said in a statement. “By targeting these companies and their ships, we are upholding the dual goals of the price cap by restricting Russia’s profits from oil while promoting stable global energy markets.”

The G-7 imposed a $60-a-barrel cap on crude purchases in December 2022, followed by other other price limits for refined fuels in February. The measures require shipowners to get attestations from traders that the oil didn’t breach the limit. If it did, they’re not allowed to provide services.

But oil is now trading well above the price cap and Russia has built up a large shadow fleet of tankers while shifting its exports to countries such as India.

The US imposed its first sanctions in connection with the measure on October 12.