US Imposes Sanctions On Russian Oil Major Sovcomflot PJSC

The Treasury Department said that it has also placed sanctions on 14 crude oil tankers that it found as being linked with the Russian company

The United States imposed sanctions on Russian firm Sovcomflot PJSC to restrict President Vladimir Putin from escaping a price cap on crude exports. The move comes as other allies including the United Kingdom opt for the route to impose sanctions on the Russian oil-shipping major firm. 

In a statement, the Treasury Department revealed that it has also placed sanctions on 14 crude oil tankers that it found as being linked to the Russian company, reported Bloomberg. The firm is already under sanctions from Australia, New Zealand, Canada, the UK, and the European Union has also placed restrictions on the oil company. 

Notably, the US placed sanctions on firms linked to the Russian oil giant earlier also. These sanctions come as part of the measures taken by countries after the invasion of Ukraine by Russia in February 2022. The nations together imposed an oil-price sales cap on Russian exports. 

The US Treasury officials believe that the price cap is now working effectively after multiple rounds of actions taken to enforce it, after failing to make an impact in the summer and fall. The department issued the announcement after market hours on Friday as part of the biggest sanctions imposed by the US against Russia ever since its invasion of Ukraine.

The Treasury stated that these sanctions against the Russian firm are for “operating or having operated in the marine sector of the Russian Federation economy”. The officials took action against over 500 individuals and entities around the world in the sanctions.

As a result of these sanctions on Russian oil, the Russian economy has been suffering, with a 12 per cent fall in monthly revenues, according to the data released by the Centre for Research on Energy and Clean Air.