Shipping Companies Face, US Sanctions for Violating , Russian Oil Price Cap.<br />On October 12, the United States Treasury Department <br />announced that it has approved sanctions on two <br />companies that violated a multinational price cap.<br />On October 12, the United States Treasury Department <br />announced that it has approved sanctions on two <br />companies that violated a multinational price cap.<br />ABC reports that the U.S., the European Union, <br />and other countries in the G7 agreed to <br />impose a $60-a-barrel limit in 2022. .<br />The move was an attempt to reduce <br />the Kremlin's revenue stream for <br />funding Russia's war on Ukraine. .<br />According to the Treasury Department, <br />the two companies facing sanctions are <br />based in the United Arab Emirates and Turkey. .<br />ABC reports that Lumber Marine, <br />an Emirates-based company, shipped <br />Russian oil priced above $75 a barrel. .<br />In a separate incident, a Turkey-based company, <br />Ice Pearl Navigation, reportedly carried <br />Russian oil priced at $80 a barrel.<br />The sanctions will block the companies' access to <br />any U.S. property or financial interests, while also <br />preventing them from conducting any U.S. business.<br />The Biden administration has stressed the success <br />of the price cap, citing a 45% reduction in Russian <br />oil tax revenue since it was put into place.<br />ABC reports that an unnamed senior treasury official <br />said that Russia has attempted to build an alternative <br />shipping network in response to the price cap. .<br />ABC reports that an unnamed senior treasury official <br />said that Russia has attempted to build an alternative <br />shipping network in response to the price cap. .<br />The official reportedly added that enforcing the cap <br />will serve to further increase Russia's oil industry costs <br />to reduce funds available for its war efforts in Ukraine. .<br />The official reportedly added that enforcing the cap <br />will serve to further increase Russia's oil industry costs <br />to reduce funds available for its war efforts in Ukraine.
