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US Imposes Sanctions on UAE, Turkey Firms Over Oil Cap Breach

Published 13/10/2023, 01:10 am
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The US government has implemented sanctions on Lumber Marine, a firm based in the United Arab Emirates, and Ice Pearl Navigation Corporation, a Turkish company, for violating the oil price cap set by the G7 and Australia. The cap restricts sales of Russian-origin crude oil and petroleum products using Western services to a maximum of $60 per barrel. This development was announced on Thursday.

The sanctions are a response to rising global energy prices following the Hamas attack on Israel, with the aim of limiting Russia's resources for its ongoing conflict in Ukraine. According to Deputy Treasury Secretary Wally Adeyemo, Russia's evasion of this cap has led to the establishment of a "shadow" fleet and alternative financial services.

In a joint statement, the G7 and Australia warned of intensified enforcement against potential violations. Treasury Secretary Janet L. Yellen stated that this marks a new phase of enforcement, implying further actions could be taken if non-compliance continues. The statement did not specify any particular timeframe for these potential measures.

The US sanctions against Lumber Marine and Ice Pearl Navigation Corporation underline the seriousness with which international agreements are being enforced. The decision to impose these measures reflects an increased effort by international bodies to control global energy prices and maintain stability in the face of geopolitical tensions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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