US Government Sanctions Russia's Largest State-Owned Shipping Company... Specifies 14 Oil Tankers

Image source=AP Yonhap News

The U.S. government has designated Russia's largest state-owned shipping company as a sanction target.

On the 23rd (local time), the U.S. Department of the Treasury designated Sovcomflot as a sanction target to responsibly reduce Russia's oil sales revenue and classified 14 oil tankers transporting crude oil as assets with Sovcomflot's equity.

Furthermore, it emphasized that this measure signifies strengthening the price cap sanctions on Russian crude oil. The policy is to sanction companies that do not cooperate with the price cap system, making transportation for Russian crude oil exports more difficult and costly.

The Group of Seven (G7) major countries including the U.S., Japan, the U.K., Germany, France, Italy, Canada, as well as the European Union (EU) and Australia, set and implemented a price cap of $60 per barrel on Russian crude oil in December 2022. For transactions exceeding the cap, companies have faced restrictions on services related to insurance, finance, and transportation.

Along with this, the U.S. government announced a sanction package targeting about 500 Russian corporations and individuals across various industries, including the financial and energy sectors.

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