On November 16, 2023, the Office of Foreign Asset Control (OFAC), an agency of the U.S. Department of the Treasury, imposed sanctions on three United Arab Emirates (UAE) entities and blocked three vessels. The entities were found to have employed the services of the Price Cap Coalition to transport Russian crude oil above the pre-agreed price limit set by the Coalition. This recent decision parallels OFAC actions taken in October, when two other entities and two vessels were also penalized for transporting Russian oil above the price cap.
These preventive measures underline the strict enforcement of the oil price cap rules among international oil trade stakeholders. By implementing successive sanctions, OFAC seeks to maintain the agreed pricing structure for Russian crude oil supplies, ensuring a fair and competitive market.
Regulations on crew health and the safety of blocked vessels were also addressed in the newly issued OFAC General License. It is vital to note that even among heightened scrutiny and sanctions, the concern for crew well-being and ship safety is paramount to the agency. Legal professionals and entities operating in this sphere should ensure compliance with all such directives to circumvent potential legal and financial hazards.