The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken its first oil price cap enforcement action of 2024, targeting a shipping company linked to a price cap violation.
“Today’s actions once again demonstrate that anyone who violates the price cap will face the consequences”
Deputy Secretary of the Treasury Wally Adeyemo
United Arab Emirates-based shipping company Hennesea Holdings Limited (Hennesea) is the ultimate owner of 18 vessels, including the HS Atlantica, which
OFAC previously identified as having engaged in the transport of crude oil of Russian Federation origin priced above the $60 per barrel price cap while using a covered U.S.-based provider after the price cap policy came into effect.
On December 1, 2023, OFAC identified the HS Atlantica as property in which Hennesea’s subsidiary, U.S.-designated HS Atlantica Limited, has an interest. Today, OFAC is additionally re-identifying the HS Atlantica as property in which Hennesea has an interest.
Shortly before the price cap went into effect, Hennesea, which was established in late 2022, acquired older tankers that ship Russian crude oil and petroleum products. Tankers ultimately owned by Hennesea have repeatedly conducted port calls in Russian Federation ports.
OFAC identified the following vessels, all of which are beneficially owned by Hennesea, as property in which Hennesea has an interest:
- ARISTO (IMO 9327413)
- HAI II (IMO 9259599)
- HS ARGE (IMO 9299745)
- HS ATLANTICA (IMO 9322839)
- HS BURAQ (IMO 9381732)
- HS ESBERG (IMO 9410894)
- HS EVERETT (IMO 9410870)
- HS GLORY (IMO 9249087)
- HS LEGEND (IMO 9381744)
- HS STAR (IMO 9274446)
- LA PRIDE(IMO 9274616)
- MONA (IMO 9314818)
- NELLIS (IMO 9322267)
- OSPEROUS (IMO 9412995)
- PERIA (IMO 9322827)
- SARA II (IMO 9301615)
- SENSUS (IMO 9296585)
- UZE (IMO 9323338)
The United States is part of an international coalition of countries, including the G7, the European Union, and Australia, that have committed to prohibit the import of crude oil and petroleum products of Russian Federation origin. These countries, home to many best-in-class financial and professional services, have also committed to restrict a broad range of services related to the maritime transport of crude oil and petroleum products of Russian Federation origin (“Russian oil”) – unless that Russian oil is bought and sold at or below the specific price caps established by the Coalition or is authorized by a license. This policy is known as the “price cap.”
