Singapore, Malaysia to get visit from US treasury official to discuss sanctions on Iran, and Russian oil
The visit comes as Treasury has increased its focus on terrorist financing through Southeast Asia, including through fundraising efforts and illicit Iranian oil sales, the source said.
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The Treasury Department in December imposed sanctions on four Malaysia-based companies it accused of being fronts supporting Iran’s production of drones.
Washington has recently imposed further sanctions targeting Iran, including over Iranian drones used by Russian in the war in Ukraine, as the US has sought to ratchet up pressure on Tehran after its attack on Israel.
While in Singapore, Nelson will discuss the enforcement of a G7-led price cap on Russian oil as well as cutting off the transshipment of critical dual-use goods, those which have both civilian and military purposes, said the source.
The United States and its allies have imposed sanctions on thousands of targets since Russia invaded neighbouring Ukraine. The war has seen tens of thousands killed and cities destroyed.
Washington has since sought to crack down on evasion of the Western measures, including the shipment of dual-use goods through third countries to Russia.
Singapore is a major shipping hub. Insurance and other maritime service providers operating in Singapore have warned of evasion of the price cap on Russian oil, complaining that it is difficult to confirm that paperwork promising oil is bought at or below the US$60 cap is accurate.
The G7 price cap on Russian crude oil, imposed in December 2022, aims to reduce Russia’s revenues available for its war in Ukraine by allowing Western-supplied insurance and other services only on cargoes priced below $60 a barrel.