WASHINGTON (AP) – The United States on Thursday sanctioned a United Arab Emirates shipping company for shipping Russian crude oil above a $60 per barrel price cap.
This is the Treasury Department's first oil price cap enforcement action of 2024, and is imposed on Hennessy Holdings Limited and 18 of its vessels, which the U.S. Treasury currently considers to be blockaded property. American companies and citizens will no longer be able to do business with the United States.
“Today's actions demonstrate once again that anyone who violates price caps will face consequences,” said Deputy Treasurer Wally Adeyemo. “No one should doubt our coalition's efforts to stop those who support the Kremlin.”
Representatives for Hennessy Holdings could not be reached for comment.
The United States, the European Union, the Group of Seven (G7) and Australia have imposed a $60 per barrel cap on Russian crude oil in 2022.
Purchasing above the limit will violate the agreed upon policy. The cap is aimed at depriving the Kremlin of revenue to fund the war in Ukraine, forcing the Russian government to sell oil at a discount or divert funds to expensive alternative shipping lines.
Last year, companies in the United Arab Emirates, Hong Kong and Turkey were placed under economic sanctions for allegedly violating price caps.
The price cap was introduced amid equal parts skepticism and hope that the policy would deter Russian President Vladimir Putin from invading Ukraine.
In addition to price caps, allies have imposed thousands of sanctions against Russia throughout the war, which begins its third year next month. The sanctions target Russians with ties to banking and financial transactions, technology imports, manufacturing, and the government.
