NewsBiden has had enough. First penalties for breaking G7 sanctions are here

Biden has had enough. First penalties for breaking G7 sanctions are here

Biden has had enough. First penalties for breaking G7 sanctions are here
Images source: © GETTY | Anadolu Agency
ed. LOS
6:41 AM EDT, October 13, 2023

The G7 in December of last year determined that companies located in group countries cannot sell Russian oil at a price higher than $60 per barrel. Recently, "The Washington Post" reported that the sanctions "lack teeth." It seems that the USA has taken this to heart.

The USA on Thursday (October 12) imposed restrictions on the tanker owners SCF Primorye from the United Arab Emirates and YasaGolden Bosphorus from Turkey. The vessels were transporting Russian oil from ports in Russia at over $75 and $80 per barrel, significantly above the established limit of $60.

Importantly, both companies used the services of American companies for transportation, which is what exposed them to sanctions. As a result, the assets of both companies in the United States will be blocked, as well as the tankers themselves.

Let's recall that the limit introduced by the G7 countries in December 2022 concerns the trade of Vladimir Putin's regime's oil through the services of companies - e.g. insurers or freight forwarders - located in the group's countries. All of this is to limit Moscow's funds for conducting war in Ukraine.

Warning for those who want to help Putin in oil trade

In addition, the G7 countries have issued a warning for other businesses and countries, which includes explanations regarding the operation of the price cap.

Representatives of the US administration said that the sanctions represent a "new phase" in the implementation of the limit introduced in December 2022.

- Today's actions demonstrate our ongoing commitment to limit Russia's resources for its war against Ukraine, and to enforce price ceilings - stated Deputy Treasury Secretary Wally Adeyemo.

Russia is constantly trying to circumvent the limit by relying on alternative services and hiding the movements and affiliation of tankers. US Treasury Secretary Janet Yellen admitted on Wednesday that Putin's regime has managed to reduce the effectiveness of the limit, but she stressed that the current policy has significantly reduced the inflows to the Russian budget and is still working.

Related content