USA imposed the first sanctions for violations of the Russian oil price limit introduced by the Group of Seven almost a year ago, as signs mount that restriction is failing to reduce Kremlin revenue with the expected effectiveness.
The Treasury Department described the measures as a new phase in the application of a policy aimed at limiting the flow of money to Russia to finance its war in Ukraine. Advertisement sanctions against two companies and blocked two ships who, he said, had violated the limit.
The price of oil rose due to the war in the Middle East
This measure was intended keep Russian oil flowing to the world market to ensure that prices do not rise, but also reduce the Kremlin’s income. To this end, the limit prohibits companies provide services such as shipping and insurance to any cargo priced above the US$60 per barrel limit.
However, Russia managed to form its own fleet and diverted export flows to countries like India, which did not join the price limit. In recent months, the price of Russian sales has reached US$80 or moreand even US authorities began to publicly admit that the limit It was losing effectiveness.
“We remain committed to implementing a price cap policy “which has two objectives: to reduce the oil profits on which Russia depends to wage its unjust war against Ukraine, and to keep global energy markets stable and well supplied despite the turbulence caused by Russia’s unprovoked invasion of Ukraine,” he said. the Undersecretary of the Treasury, Wally Adeyemoit’s a statement.
The US Department of the Treasury sanctioned Lumber Marine SA, based in the United Arab Emirates, registered owner of SCF Primorye; and Ice Pearl Navigation Corpregistered owner of the Yasa Golden Bosphorus.
The Treasury published its new guidelines and announced the sanctions just as G7 finance ministers met in MarrakeshMorocco, on the sidelines of the annual meetings of the International Monetary Fund and the World Bank.
IMF warns of persistent inflation and weak global growth in 2024
A US official indicated that currently there were no plans to reduce the limit, as some European nations have suggested. The official also acknowledged that the size of the Russian fleet has increasedalthough he could not determine its exact size.
The Secretary of the Treasury, Janet YellenHe said last month that the effectiveness of the limit in reducing Russian revenues had decreased over time as Moscow had found ways to evade its reach and break its rules.
A key metric of the cap’s impact is the discount of Russian Ural grade crude oil against Brent, the world reference. For many months, that discount exceeded US$30, but recently it has fallen to about US$10.
The French Finance Minister, Bruno Le Mairetold reporters on Thursday that “gaps” had emerged at the limit that the nations of the Group of Seven they had to address.
Translated by Paulina Steffens.