US imposes sanctions on Russia’s largest shipping company

Russian state-owned shipping company Sovcomflot (SCF Group) has been hit by the latest sanctions imposed by the United States in response to Putin’s “war of choice” against Ukraine.

On February 24, the United States took action to respond to Russia’s renewed invasion of Ukraine by imposing economic costs that are expected to have both immediate and long-term effects on the Russian economy, the financial system and access to new technologies.

The US Treasury Department’s Office of Foreign Assets Control (OFAC), in partnership with allies and partners, has imposed expansive economic measures that target the core infrastructure of Russia’s financial system – including all of the largest institutions. financial institutions and the ability of state- owned and private entities to raise capital.

In an effort to limit Russia’s ability to fund its invasion of Ukraine, OFAC extended Russia’s debt and equity restrictions on thirteen of Russia’s most critical major companies and entities.

This includes restrictions on all transactions, the provision of financing and other dealings in new debts with a maturity of more than 14 days and new shares issued by thirteen Russian companies and public entities, including Sovcomflotoil producer and refiner Gazprom Neftnatural gas company Gazprom and others.

These entities, including businesses critical to the Russian economy with assets estimated at nearly $1.4 trillion, will not be able to raise funds in the US market – a key source of capital and revenue generation. income.

It remains to be seen how the new sanctions will affect Sovcomflot, which is Russia’s largest shipping and cargo company and one of the world’s largest energy transmission companies.

With a fleet of 133 vessels of a combined deadweight of 11,619,330 tons with an average age of 12.4 years, focusing on the transportation of crude oil, petroleum products and liquefied gas, as well as the maintenance of offshore oil and gas production.