Regulatory intelligence for US exporters

OFAC Sanctions Companies, Vessel for Violating Russian Oil Price Cap

The Office of Foreign Assets Control this week sanctioned four entities and identified one vessel for violating the price cap on Russian oil. OFAC said they were involved in a “price cap violation scheme” in late 2023 that included making calls at Russian ports.

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The designations target United Arab Emirates-based Zeenit Supply and Trading DMCC, UAE-based Talassa Shipping DMCC, UAE-based Oil Tankers SCF Mgmt FZCO and Liberia-registered NS Leader Shipping Incorporated. OFAC also designated the vessel NS Leader, which was used by Zeenit Supply and Trading to deliver Urals crude oil in November that was priced more than $20 over the $60 cap.

The agency also issued a general license to authorize certain transactions related to safety and the environment involving oil tankers SCF MGMT FZCO and NS Leader Shipping Incorporated and any entity they own by 50% or more. Those transactions are authorized through 12:01 a.m. EDT May 8.

Brian Nelson, the Treasury Department’s undersecretary for terrorism and financial intelligence, said the new sanctions should “serve as a continued warning that we can and will enforce violations of the cap.”