Russia Sanctions: Oil Price Cap Exemption
25 November 2022

The G7, US, EU and Australia have agreed to implement a policy applicable to a broad range of services as they relate to the maritime transport of crude oil and petroleum products of Russian Federation origin.

UK, EU and US entities are authorized to provide certain services as they are related to the maritime transport of Russian oil as long as the Russian oil is purchased at or below the related price cap.

The prohibition includes those who own, control, operate, charter, control a vessel carrying the above goods, as well as financial services, funds, brokerage and shipping to facilitate the supply or delivery (including refiners, importers, brokers, traders, banks, trade finance providers, insurers, reinsurance).

Pending negotiations on an international basis, the deadline of 5th December 2022, when the prohibitions will come into play, is drastically forthcoming.

Our Shipping & Transport Focus Team stressed the effects of the current prohibitions on the different international regimes banning the maritime transportation of oil and oil products in the document available here.