The U.S. government sanctions two shipping companies for violating the Russian oil price cap

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The Treasury Department said Thursday that it has imposed its first set of sanctions on two companies that shipped Russian oil in violation of a multinational price cap.

The United States, along with the European Union, countries in the Group of Seven and Australia, imposed a US$60 a barrel limit last year on what Russia could charge for its oil. 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.

A senior treasury official, who briefed reporters on condition of anonymity per department rules, said that the government has usually contacted a ship's flagging nation and insurer if there is even a suspicion of a violation, leading to the ship losing access to insurance or a country's registration.

The administration has argued that the cap has been successful, leading to a 45 per cent drop in Russian oil tax revenue over the past year. The official said the focus of enforcing the cap will be on further increasing costs for Russia's oil industry so Moscow has less money available to support its military in Ukraine.

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The US government sanctions two shipping companies for violating the Russian oil price capWASHINGTON (AP) — The Treasury Department said Thursday that it has imposed its first set of sanctions on two companies that shipped Russian oil in violation...
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