OFAC took sanctions action over the last week to enforce the price cap policy on the import of crude oil and petroleum products of Russian Federation origin:
- OFAC Sanctions Entities and Identifies Vessels Supporting Russian Oil: OFAC on Oct. 12 sanctioned two entities and identified as blocked property two vessels that used Price Cap Coalition service providers while carrying Russian crude oil above the Coalition-agreed price cap. OFAC’s action underscores the Treasury Department’s commitment with its international partners to responsibly reducing Russian government oil profits and constraining Russia’s war on Ukraine. Read more.
- Related to this action, OFAC issued Russia-related General License 73 to authorize certain transactions through Jan. 8, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations. Read more.
- Price Cap Coalition Publishes Advisory: In related news, the Price Cap Coalition published a Coalition Advisory for the Maritime Oil Industry and Related Sectors. Price Cap Coalition members—Australia, Canada, the European Union, France, Germany, Italy, Japan, the United Kingdom, and the United States—established price caps on seaborne Russian oil to minimize negative economic spillovers of Russia’s war of aggression, especially on low- and middle-income countries. The advisory provides recommendations concerning specific best practices and reflects the Coalition’s commitment to promoting responsible practices in the industry, preventing and disrupting sanctioned trade, and enhancing compliance with the price cap. Read the advisory. Read the statement released by the G7 and Australia on actions taken to enforce price caps for seaborne Russian-origin oil and petroleum products.