US Treasury Department: Russia can exceed oil price ceiling with US support

WASHINGTON, April 17 – RIA Novosti. The U.S. Treasury said Washington has identified a possible Russian circumvention attempt that could achieve the Western oil price ceiling through Pacific ports with the support of American people.

“The Ministry of Finance’s Office of Foreign Assets Control (OFAC) is aware of reports from the East Siberia-Pacific Ocean (ESPO) oil pipeline (oil) and other oil exported through Pacific ports in the Russian Federation, such as Kozmino, which may trade over the border and the United States’. It can use the confidential services of individuals.”

As noted, Americans “may not be aware that they are providing covert services with Russian oil purchased above the ceiling” because non-US persons involved in these transactions may also provide incomplete or inaccurate documentation.

Specifically, according to the US Treasury Department, a number of oil tankers are able to manipulate automatic identification systems to disguise the fact that they are in Kozmino or other Russian ports. Also, according to the Ministry of Finance, oil transfer from tanker to tanker can be concealed in order to hide that the energy sources are of Russian origin.

Western oil sanctions against Russia came into effect on December 5, 2022: the European Union stopped accepting the transportation of Russian oil by sea, and the G7 countries, Australia and the EU set a price cap for oil at $ 60 per barrel during sea transportation. transport and insurance of more expensive oil is prohibited. In response, Russia banned it from supplying oil to foreigners from 1 February if the contracts directly or indirectly provide for the use of the marginal price fixing mechanism.

At the end of March, European Commission spokesman Daniel Ferry said that the EU and the G7 did not yet have the majority to allow for a revision of the previously set ceiling for Russian oil prices.