Read Authentic Ratings for the Krymsk

In a significant move against Russian shipping interests, the United States has targeted 14 tankers owned by Sovcomflot, which includes vessels such as 'Anatoly Kolodkin', 'NS Antarctic', 'NS Lion', 'NS Consul', 'NS Burgas', 'NS Captain', 'NS Columbus', 'Sakhalin Island', 'Nevskiy Prospect', 'Georgy Maslov', 'Liteyny Prospect', 'Krymsk', 'NS Creation', and 'NS Bravo'. These ships now have a 45-day window to offload their oil and other cargo, following allegations of breaching the crude oil price cap that has been in place since December 2022. Sovcomflot's operations have drawn scrutiny from Western authorities for using obscure ownership structures designed to hide illicit activities. The fleet has been under the microscope for practices including ship-to-ship (STS) oil transfers and deactivating their Automatic Identification System (AIS), contributing to an ever-expanding covert fleet. The Office of Foreign Asset Control (OFAC) within the U.S. Treasury has sanctioned the 14 tankers linked to Sovcomflot, with 12 of these managed by Oil Tankers SCF Management FZCO. This entity emerged as a result of the restructuring of Sovcomflot’s fleet after it faced international sanctions. The initial sanctions against Sovcomflot were imposed in 2022, focusing on financial dealings encompassing long-term debts and new equity. Although these 14 tankers are now prohibited, OFAC has not restricted the transactions of the remainder of Sovcomflot's fleet, which comprises 147 vessels. This means that oil traders are still permitted to utilize the majority of the company's fleet without facing penalties. The price cap system aims to curb Russia's revenue from hydrocarbon sales without destabilizing global markets, suggesting a price discount per barrel in relation to prevailing market rates. In January, Russia sold its oil at approximately $19 under the Brent benchmark price, a fall from earlier discounts of $12 to $13 per barrel in October, reducing their oil income by a quarter while military expenditures surged by 60%. Observers have voiced concerns over the effectiveness of these sanctions, citing issues with enforcement and oversight. In December 2023 alone, 196 tankers attributed to the clandestine fleet departed from Russian ports, while five new firms operating out of the United Arab Emirates began transporting Russian crude in November 2023. Since the introduction of the price cap in October, the U.S. Treasury has sanctioned 27 oil companies for non-compliance, underscoring the ongoing tensions and complexities within the global oil landscape.