Russian Oil Squeeze Tightens as Sovcomflot Admits Difficulties
- New sanctions ‘creating additional operational difficulties’
- Increased wariness about dealings with sanctioned oil tankers
The measures imposed late last year began a period of sanctions tightening aimed at squeezing the Kremlin’s access to petrodollars to fund the war in Ukraine.
Photographer: Andrei Pungovschi/BloombergThis article is for subscribers only.
Russia’s state oil tanker company PJSC Sovcomflot said that US sanctions are putting pressure on its operations, the latest sign that the measures are complicating the delivery of the nation’s petroleum.
Last month, the US Treasury’s Office of Foreign Assets Control designated Sovcomflot and identified 14 crude oil tankers in which the state-controlled firm has an interest. That came on top of wider measures already imposed on non-Sovcomflot ships and Russia-friendly companies since October for violations of a Group of Seven cap on the price of Russian oil.