USA’s Russia sanctions target oil shipping, avoid energy, metals

Russia

WASHINGTON, February 23, 2024 – US President Joe Biden on Friday announced more than 500 new sanctions against Russian people and entities, including a major oil shipping company but leaving the energy and metals industries largely untouched.

Since late 2022, the USA has subjected Russian oil to a price cap, tightening its enforcement in October 2023 in response to Moscow’s use of what the Treasury Department terms a “shadow fleet” – “an infrastructure of ships, insurers and other service providers with opaque ownership structures and a history of sanctions evasion activities.”

Oil shipping giant Sovcomflot is among the entities targeted on Friday in a bid to disrupt this alleged evasion.

The US price cap policy is meant to limit Moscow’s oil profits while maintaining stable energy supplies.

Some observers have deemed the new sanctions “incremental” and designed to avoid economic upsets in a US election year.

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