US clamps down on tanker owners carrying Russian crude above price cap

The US treasury department’s foreign asset control division has imposed sanctions on two companies and their oil tankers accused of transporting Russian crude above the G7’s price cap.

PHOTO: Oil tanker ship moored at oil terminal. Getty Images

UAE-based Lumber Marine and Turkey-based Ice Pearl Navigation were identified by the US Treasury Department for operating vessels carrying Russian crude above the $60/bbl price cap imposed by the price cap coalition.

The price cap coalition of G7 members - Canada, France, Germany, Italy, Japan, the UK, US and the “non-enumerated member” EU - and Australia set two price caps on Russian refined products on 5 February. A price cap of $100/bbl on products such as diesel and gasoil that trade at a premium to crude. And a cap of $45/bbl on products like fuel oil that are traded at a discount to crude. They had also previously set a price cap of $60/bbl on crude oil originating from Russia.

The coalition also restricted services, including insurance, for sea transportation of Russian crude oil and petroleum products unless they are bought and sold below the price caps.

Lumber Marine's vessel SCF Primorye was carrying Novy Port crude priced above $75/bbl. Ice Pearl Navigation’s vessel Yasa Golden Bosphorus was carrying ESPO blend crude priced above $80/bbl, according to the US Treasury Department. Novy Port and ESPO blend are light sweet grades of Russian crude oil.

“Both the Yasa Golden Bosphorus and the SCF Primorye, which conducted port calls in the Russian Federation, used U.S.-based services providers while transporting the Russian origin oil,” it added.

“Treasury and the coalition will remain vigilant in monitoring the compliance of shipping companies and vessels participating in the Russian oil trade while using the services of Price Cap Coalition service providers,” US treasury department said.

By Konica Bhatt

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