November 16, 2023

US Treasury sanctions companies, tankers for violating G7-led price cap on Russian crude

Source: S&P Global

The new sanctions are a part of the shift that the US took towards enforcement of the price cap in October, and they may lead G7 companies to become more reluctant to trade with Russia, said Rachel Ziemba, an adjunct fellow at the Center for a New American Security. But unless the new sanctions are followed up by a deeper system of price checks, penalties, and designations from the US and G7 allies, they will not meaningfully change the Russian oil market, she said.

"A key part of this shift towards enforcement will necessitate convincing other countries to require insurance and environmental safety standards that require high quality insurance," Ziemba said. "Otherwise, the net result will be a further shift into use of the dark fleet and barter trade."

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Authors

  • Rachel Ziemba

    Adjunct Senior Fellow, Energy, Economics, & Security Program

    Rachel Ziemba is an Adjunct Senior Fellow at the Center for a New American Security (CNAS). Her research focuses on the interlinkages between economics, finance and security i...