US intensifies sanctions against Russia, blacklists 14 oil tankers

The United States has increased its economic pressure on Russia by imposing sanctions on Sovcomflot, the nation's premier tanker group, and blacklisting 14 Russian oil tankers.

This move, announced by the Treasury Department, targets Moscow's oil revenues and enforces a Western-imposed price cap, a response to the ongoing invasion of Ukraine.

Deputy Treasury Secretary Wally Adeyemo said, "Today, we take the next step by targeting Russia's largest state-owned shipping company and fleet operator, dealing a huge blow to their shadow operations."

"We are entering the next phase of increasing Russia's costs in a responsible manner to mitigate risks," he added.

These sanctions allow a 45-day window for offloading oil or other cargo from the sanctioned ships before enforcement takes effect.

This action aligns with the second anniversary of Russia's invasion of Ukraine. The coalition of the Group of Seven, the European Union, and Australia had previously set a price ceiling at $60 per barrel, aiming to limit Kremlin profits while keeping energy supplies flowing.

A senior Treasury official, speaking anonymously, disclosed that Russia has attempted to bypass this cap by investing in a "shadow fleet" for trading oil at elevated prices. The official emphasized the focus of the new sanctions on increasing Russia's cost for utilizing this shadow fleet.

Additionally, the U.S. Treasury Department has announced over 500 sanctions against Russian individuals and entities, marking the most extensive punitive measures since February 2022.

These sanctions also respond to the death of Russian opposition leader Alexei Navalny and involve charges against Russian business figures for alleged sanction evasion and money laundering.

President Joe Biden has reiterated his commitment to supporting Ukraine and holding Russia accountable, including President Vladimir Putin's alleged involvement in Navalny's death.

Source: Newsroom