The United States has adopted another package of sanctions against 11 Russian organizations and three oil tankers. The assets belonging to them will now be blocked in the United States, and American persons will be prohibited from any interaction with them.
In particular, Kazan tankers associated with Kazan Shipping Inc, Ligovsky Prospect and NS Century (all flying the Liberian flag) were sanctioned because they transported Russian oil at a price higher than the ceiling of $60 per barrel.
"We are committed to maintaining market stability despite Russia's war against Ukraine, while [aiming] to reduce the profits the Kremlin uses to fund its illegal war by remaining steadfast in pursuing those who facilitate price evasion," the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) said in a press release.
The restrictions also apply to the following:
In addition to these companies, the sanctions also affected the large Russian betting company Betsity and its founder Sergey Samsonenko.
Russia's ability to continue the war is largely dependent on oil and gas revenues, which account for the vast majority of its budget. In the first year of the war, which provoked a sharp rise in energy prices, revenues were record-breaking. By the end of 2023, they will decline, but still exceed the average level over the past ten years.
The oil ceiling for Russian oil was set in December 2022. But Russia has redirected oil flows to the east, mainly to China and India, and the average price of Russian Urals exceeded $60 per barrel in July.
According to experts, price restrictions do not work because they apply only to the G7 countries and the European Union. They have imposed an embargo, but they cannot force other consumers of Russian oil who have not joined the coalition to adhere to this ceiling. First of all, we are talking about India and China. These two countries alone are enough to keep the price of Urals above the ceiling.