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Sanctions

Russia’s largest shipping company Sovcomflot sanctioned by U.S. Treasury

In addition to designating Sovcomflot, OFAC is identifying 14 crude oil tankers as property in which Sovcomflot has an interest.

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The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Friday (23 February) placed Russia’s state-owned shipping company and fleet operator targeting Joint Stock Company Sovcomflot (Sovcomflot) under sanctions.

The development was to responsibly reduce Russia’s revenue from oil sales.

In addition to designating Sovcomflot, OFAC is identifying 14 crude oil tankers as property in which Sovcomflot has an interest.

“The price cap on Russian oil continues to serve its twin goals of limiting Kremlin profits while promoting stable energy markets,” said Deputy Secretary of the Treasury Wally Adeyemo.

“Today, we take the next step by targeting Russia’s largest state-owned shipping company and fleet operator, dealing a huge blow to their shadow operations. We are entering the next phase of increasing Russia’s costs in a responsible manner to mitigate risks.”

Concurrent with the designation of Sovcomflot, OFAC is also issuing a general license authorizing the offloading of crude oil (or other cargo) from these 14 vessels for a period of 45 days.

These vessels, all of which are beneficially owned by Sovcomflot, are:

  1. ANATOLY KOLODKIN (IMO 9610808)
  2. NS ANTARCTIC (IMO 9413559)
  3. NS LION (IMO 9339313)
  4. NS CONSUL (IMO 9341093)
  5. NS BURGAS (IMO 9411020)
  6. NS CAPTAIN (IMO 9341067)
  7. NS COLUMBUS (IMO 9312884)
  8. SAKHALIN ISLAND (IMO 9249128)
  9. NEVSKIY PROSPECT (IMO 9256054)
  10. GEORGY MASLOV (IMO 9610793)
  11. LITEYNY PROSPECT (IMO 9256078)
  12. KRYMSK (IMO 9270529)
  13. NS CREATION (IMO 9312896)
  14. NS BRAVO (IMO 9412359)

In addition, OFAC is issuing a general license authorizing transactions with all other Sovcomflot-owned vessels for the similar 45-day period.

Sovcomflot has also been sanctioned by Australia, Canada, New Zealand, and the United Kingdom (UK) and is under certain European Union (EU) restrictions.

 

Photo credit: tommao wang on Unsplash
Published: 27 February 2024

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Business

OFAC sanctions UAE-based shipping firm Hennesea for Russian crude oil price cap violations

Hennesea is the ultimate owner of 18 vessels, including the “HS Atlantica”, which OFAC previously identified for transporting Russian crude oil priced above USD 60 price cap.

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The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (18 January) said it was taking its first oil price cap enforcement action of 2024, targeting United Arab Emirates-based shipping company Hennesea Holdings Limited (Hennesea) linked to a price cap violation.

OFAC said Hennesea is the ultimate owner of 18 vessels, including the HS Atlantica, which OFAC previously identified as having engaged in the transport of crude oil of Russian Federation origin priced above the USD 60 per barrel price cap while using a covered U.S.-based provider after the price cap policy came into effect. 

On 1 December, 2023, OFAC identified the HS Atlantica as property in which Hennesea’s subsidiary, U.S.-designated HS Atlantica Limited, has an interest. Today, OFAC is additionally re-identifying the HS Atlantica as property in which Hennesea has an interest. 

Shortly before the price cap went into effect, Hennesea, which was established in late 2022, acquired older tankers that ship Russian crude oil and petroleum products. Tankers ultimately owned by Hennesea have repeatedly conducted port calls in Russian Federation ports.

Hennesea was designated pursuant to E.O. 14024 for operating or having operated in the marine sector of the Russian Federation economy.

OFAC identified the following vessels, all of which are beneficially owned by Hennesea, as property in which Hennesea has an interest:

  • ARISTO (IMO 9327413)
  • HAI II (IMO 9259599)
  • HS ARGE (IMO 9299745)
  • HS ATLANTICA (IMO 9322839)
  • HS BURAQ (IMO 9381732)
  • HS ESBERG (IMO 9410894)
  • HS EVERETT (IMO 9410870)
  • HS GLORY (IMO 9249087)
  • HS LEGEND (IMO 9381744)
  • HS STAR (IMO 9274446)
  • LA PRIDE (IMO 9274616)
  • MONA (IMO 9314818)
  • NELLIS (IMO 9322267)
  • OSPEROUS (IMO 9412995)
  • PERIA (IMO 9322827)
  • SARA II (IMO 9301615)
  • SENSUS (IMO 9296585)
  • UZE (IMO 9323338)

“As a result of today’s action, all property and interests in property of the person above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC,” it said. 

“In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.”

“All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt.”

“These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.”

Related: OFAC sanctions tanker owners for Russian price cap violations
Related: OFAC issues warning on possible evasion of Russian oil price cap

 

Photo credit: tommao wang on Unsplash
Published: 22 January, 2024

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Sanctions

OFAC sanctions tanker owners for Russian price cap violations

Sanctions have been imposed on United Arab Emirates-based Lumber Marine and Turkiye-based Ice Pearl Navigation, which operated tankers carrying Russian cruise oil priced above USD 60 price cap.

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The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (12 October) sanctioned two tanker owners and identified two vessels as blocked property that used Price Cap Coalition service providers while carrying Russian crude oil above the Coalition-agreed price cap. 

“This action underscores the Treasury Department’s commitment with its international partners to responsibly reducing Russian government oil profits and constraining the Russian war machine,” OFAC said in a statement. 

The crude oil price cap took effect in December 2022 with a cap on Russian crude oil at USD 60 per barrel. The United States is part of an international coalition (the Price Cap Coalition), including the G7, the European Union, and Australia, that have agreed to prohibit the import of crude oil and petroleum products of Russian Federation origin.

OFAC said United Arab Emirates-based Lumber Marine SA’s tanker SCF Primorye carried Novy Port crude oil priced above USD 75 per barrel from a port in the Russian Federation after the crude oil price cap took effect. 

Turkiye-based Ice Pearl Navigation Corp’s tanker YasaGolden Bosphorus carried ESPO crude oil priced above USD 80 per barrel after the crude oil price cap took effect. 

Both the SCF Primorye (IMO 9421960) and the Yasa Golden Bosphorus (IMO 9334038), which conducted port calls in the Russian Federation, used U.S.-based service providers while transporting the Russian origin oil.

“Lumber Marine SA and Ice Pearl Navigation Corp were both designated pursuant to Executive Order 14024 for operating or having operated in the marine sector of the Russian Federation economy. OFAC also identified the SCF Primorye and the Yasa Golden Bosphorus as property in which Lumber Marine SA and Ice Pearl Navigation Corp, respectively, have an interest,” OFAC said. 

“As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.”

“Today’s action demonstrates our continued commitment to reduce Russia’s resources for its war against Ukraine and to enforce the price cap,” said Deputy Secretary of the Treasury Wally Adeyemo. 

“We remain committed to implementing a price cap policy that has two goals: reducing the oil profits upon which Russia relies to wage its unjust war against Ukraine and keeping global energy markets stable and well-supplied despite turbulence caused by Russia’s unprovoked invasion of Ukraine. We will continue to take actions to achieve these two goals.”

In addition to today’s sanctions actions, the Price Cap Coalition has also published a Coalition Advisory for the Maritime Oil Industry and Related Sectors

The Advisory, which is directed at both government and private sector actors involved in the maritime trade of crude oil and refined petroleum products, provides recommendations concerning specific best practices and reflects our commitment to promoting responsible practices in the industry, preventing and disrupting sanctioned trade, and enhancing compliance with the price cap.

Photo credit: tommao wang on Unsplash
Published: 16 October, 2023

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