The co-founder of Red Box Energy Services said the US government was “wrong” to sanction the heavylift vessel operator
Philip Adkins, who described himself as one of the original founders of the Singapore vessel operator, told TradeWinds the decision on Wednesday was not consistent with the “appropriate application” of sanctions on Russia.
“We think that the decision is wrong,” he said, explaining that he was speaking on a personal basis and not for the company.
“I think they have overreached, and we have to challenge that decision.”
As TradeWinds has reported, the US State Department announced on Wednesday that Red Box and its two vessels were placed on a sanctions blacklist as Washington targetted several ships and companies for their involvement in Russia’s Arctic LNG 2 project.
The move sanctioned the 28,900-dwt Audax and 28,800-dwt Pugnax (both built 2016), two heavylift ships that US authorities said carried LNG modules for the export project as recently as February.
The Treasury Department’s Office of Foreign Assets Control added the company and its ships to its Specially Designated Nationals list. This action is part of a larger effort to sanction 300 new individuals, companies, and vessels connected to Russia’s war with Ukraine.
Red Box has engaged legal advisers to launch an appeal of the decision.
US-born Adkins said that he was personally surprised by the move, even after the Financial Times recently reported on calls to close sanctions loopholes on service providers to the Arctic LNG project.
He said the Red Box voyages in question were “entirely compliant” with existing sanctions at the time, and he said the company is very careful to stay within the rules of the sanctions regimes.
“Personally, I believe that we have to engage with Ofac in a way that demonstrates that what they have done is wrong,” he said.
