The U.S. Division of the Treasury’s Workplace of Overseas Belongings Management (OFAC) has imposed sanctions on 4 entities and recognized one tanker as blocked property for violating the worth cap on Russian oil. This marks the second worth cap enforcement motion taken by the OFAC in 2024 because the U.S. is continuous its crack down on worth cap violations.
The entities concerned within the scheme, together with tanker NS Chief, are alleged to have participated in violating the value cap on Russian oil. The value cap was launched in December 2022, in a joint settlement between the US, the G7, the European Union, and Australia. The cap, set at $60 per barrel, was designed to keep up a constant world oil provide whereas decreasing Russia’s oil revenues that are suspected for use in funding its battle in Ukraine.
Nonetheless, in November 2023, Zeenit Provide and Buying and selling DMCC, a UAE-based entity, bought Russian Urals crude oil at over $80 per barrel, delivered utilizing the vessel NS Chief. This vessel utilized companies supplied by a coated U.S. particular person in the course of the voyage.
In response to OFAC, Zeenit and one other UAE-based entity, Talassa Delivery DMCC, have been concerned in delivery a number of cargoes of crude oil of Russian origin utilizing vessels that loaded in Russian ports in 2023. Each entities share a enterprise supervisor and had been based roughly per week aside in July 2022.
The NS Chief, registered below NS Chief Delivery Included, is owned by the Authorities of the Russian Federation. It made 5 port calls in Russian ports in 2023. Oil Tankers SCF Mgmt FZCO, one other UAE-based entity, managed the NS Chief since September 2023, together with in the course of the November voyage when the vessel carried above-cap crude oil of Russian origin.
Because of these findings, Zeenit, Talassa, NS Chief Delivery, and Oil Tankers SCF have been sanctioned below Government Order 14024 for working within the marine sector of the Russian Federation financial system. The UK has additionally sanctioned Oil Tankers SCF.
Final month, OFAC imposed new sanctions on a UAE-based delivery firm, Hennesea Holdings Restricted, together with eighteen of its vessels for transporting Russian crude oil above the $60 per barrel worth cap.
