OFAC Sanctions for Russia Oil Cap Violations

The Treasury Department’s Office of Foreign Assets Control is imposing sanctions on three entities and identifying as blocked property three vessels that carried Russian crude oil above the price cap agreed to by the United States and its allies.

“Shipping companies and vessels participating in the Russian oil trade while using Price Cap Coalition service providers should fully understand that we will hold them accountable for compliance,” Treasury Deputy Secretary Wally Adeyemo.

“We are committed to maintaining market stability in spite of Russia’s war against Ukraine, while cutting into the profits the Kremlin is using to fund its illegal war and remaining unyielding in our pursuit of those facilitating evasion of the price cap.”

The Price Cap Coalition includes G7, the European Union and Australia. The price cap is intended to maintain a reliable supply of crude oil and petroleum products to the global market while reducing the revenues the Russian Federation earns from oil after its own war of choice against Ukraine inflated global energy prices.

Treasury is identifying as blocked property the vessels Kazan, Ligovsky Prospect and NS Century because they were engaged in the export of Russian crude oil priced above $60 per barrel after the crude oil price cap took effect. The three vessels used US-person services while transporting the Russian-origin crude oil.

Sanctions are being imposed on three United Arab Emirates-based companies – Kazan Shipping Incorporated, the registered owner of the Kazan; Progress Shipping Company Limited, the registered owner of the Ligovsky Prospect and Gallion Navigation Incorporated, the registered owner of the NS Century.