In a significant escalation of financial pressure, the United States Treasury Department has unleashed a sweeping sanctions package targeting a United Arab Emirates-based maritime giant and its fleet of oil tankers. The move is a direct response to alleged systematic violations of the G7's price cap on Russian crude oil, designed to choke off funding for the Kremlin's war in Ukraine.
The sanctions specifically designate Hennesea Holdings Limited, a UAE-registered firm suspected of being a major conduit for Russian oil sold above the agreed $60-per-barrel threshold. The Treasury's Office of Foreign Assets Control (OFAC) has blacklisted 18 vessels owned by the company, effectively freezing any US-based assets and prohibiting American entities from conducting business with them.
The Price Cap Mechanism
The G7 oil price cap, introduced in late 2022, is a novel sanctions instrument. It allows Western insurance, shipping, and financing companies to service Russian oil cargoes only if the oil is purchased at or below $60 per barrel. The aim is to maintain global supply while severely restricting the premium revenue Russia can earn from its oil exports.
According to US officials, Hennesea's tankers have been repeatedly implicated in shipping Russian crude priced above this cap, often using Western maritime services in the process. This practice, if proven, directly undermines the core objective of the international sanctions regime.
A Global Enforcement Effort
This action underscores Washington's commitment to rigorous enforcement and closes a notable loophole. Deputy Treasury Secretary Wally Adeyemo stated the move signals that the US and its allies will "hold accountable those who seek to evade our sanctions and provide the Russian regime a financial lifeline for its illegal war."
The sanctions are part of a coordinated international effort. The UK government simultaneously announced its own set of sanctions targeting international ships, including several oil tankers, believed to be used to transport Russian oil in violation of the price cap agreement.
This latest crackdown serves as a stark warning to the global maritime industry: facilitating the flow of Russian oil above the price cap carries severe consequences, cutting off access to the critical US financial system and markets.
