U.S. Imposes First Sanctions on Shipping Firms for Violating Russian Oil Price Cap

The U.S. imposed sanctions on 2 shipping companies for violating the Russian oil price cap, the first such penalties.

The sanctions target a UAE company for transporting Russian crude above $75/barrel and a Turkish company for crude above $80/barrel.

The sanctions aim to enforce the price cap enacted by the G7 to limit Russia's oil revenue amid the war in Ukraine.

Treasury warned of a new enforcement phase and monitoring evasion as oil prices rise over Middle East tensions.

Officials believe the price cap has eroded Russia's profits though Kremlin has developed a "shadow" oil transport fleet.