US Permits Operations Involving Russian Oil on Sanctioned Tankers
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has authorized transactions involving Russian crude oil and petroleum products loaded onto vessels before 12:01 a.m. Eastern Time on March 12, according to the official OFAC website. This move allows for the sale, transport, and unloading of Russian oil, including operations involving vessels under sanctions.
General License 134A permits all related transactions, including docking, anchoring, ensuring crew safety, emergency repairs, and environmental measures. Additionally, ship management services, bunkering, insurance, classification, and salvage were greenlighted. The license applies to oil and petroleum products produced by sanctioned companies from Russia.
The authorization does not extend to transactions involving Iran, North Korea, Cuba, the temporarily occupied territories of Ukraine, or Crimea. This move is seen as a significant development in the ongoing sanctions regime against Russia.
Russian Oil Revenues Surge Amid Global Tensions
The Financial Times reported that the closure of the Strait of Hormuz and a sharp rise in oil prices are bringing up to $150 million in additional daily revenue to Russia’s budget. This surge in revenues is expected to continue, with Ukrainian President Volodymyr Zelenskyy revealing a so-called barter arrangement between Moscow and Tehran.
According to Zelenskyy, Russia supplies Iran with weapons and uses energy revenues to support the Iranian regime, posing a threat to security in the Middle East. He stressed that this is encouraging Putin to continue the war. The Ukrainian President also noted that Russia earned around $10 billion in just two weeks of the conflict in the Middle East.
Oil Revenues Expected to Fall Amid Sanctions
Despite the surge in revenues, oil and gas taxes are expected to fall by 52% in March to $6.4 billion compared to last year. This decline is attributed to the ongoing sanctions regime against Russia, which has impacted the country’s energy sector. The decrease in revenues is expected to have a significant impact on Russia’s federal budget.
The authorization of transactions involving Russian oil and petroleum products loaded onto vessels before 12:01 a.m. Eastern Time on March 12 marks a significant development in the ongoing sanctions regime against Russia. As global tensions continue to rise, the impact of these sanctions on Russia’s economy will be closely watched.
Original Article: US permits operations involving Russian oil on sanctioned tankers — Rbc