U.S. OFAC sanctions shipping company for price cap violation
First oil price cap enforcement action of 2024
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today announced its first oil price cap enforcement action of 2024, targeting a shipping company linked to a price cap violation.
According to today’s Treasury release, a UAE-based shipping company is the ultimate owner of 18 vessels, including one that OFAC previously identified as having engaged in the transport of crude oil of Russian origin priced above the $60 per barrel price cap while using a covered U.S.-based provider after the price cap policy came into effect.
Shortly before the price cap went into effect, the shipping company acquired older tankers that ship Russian crude oil and petroleum products and repeatedly conducted port calls in Russian ports.
Therefore, all property and interests in property of the shipping company that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned 50% or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt.
OFAC today also issued the following:
- Russia-related General License 13H [PDF 217 KB]—"Authorizing certain administrative transactions prohibited by Directive 4 under Executive Order 14024”
- Russia-related General License 86 [PDF 219 KB]—"Authorizing limited safety and environmental transactions involving certain persons or vessels blocked on January 18, 2024”
- Amended “frequently asked question” (FAQ) 1157