International sanctions have existed as a diplomatic tool for centuries. In the 21st Century international sanctions are the favoured weapons of governments seeking to accomplish global foreign policy objectives and as protectionist sentiment rises we are seeing a marked increase in their use. Notably, Iran, Syria, Libya, Russia & Ukraine, North Korea and Venezuela have all been subjected to sanctions in recent years.
The effects of sanctions are far reaching and concerns often arise as to the uncertainty and lack of clarity of the sanctions regulations themselves. This is therefore an area where utmost caution must be exercised.
Due diligence is essential where any sanctions regime is concerned. Members are advised to continue to closely monitor developments in international sanctions and be alert to any potential infringements.
We recommend that Members should run checks on all parties involved when trading to a sanctioned country. In order to ensure that proper due diligence is carried out Members are advised to seek legal advice. Ideally such checks should be carried out before the business is fixed. Although the cost of these enquiries will be an operational expense for the Member’s account, the Club is always available to assist Members by recommending suitable lawyers and preparing the necessary instructions.
Whist governments remain of the view that sanctions are an effective tool for implementing foreign policy, they will continue to have a measurable effect on Members’ operations, as well as the industry as a whole, for the foreseeable future.
As situations are evolving on a regular basis, we have created this dedicated sanctions page in order to keep Members fully informed and up to date on developments in general. However, if a Member has any concerns about trading to a particular country or with a particular individual or entity they should consult their usual contact at the Managers.
Members are invited to sign up here to receive access to our regular updates can also access the latest news and resources here.
On 6th October, 2022 the EU adopted an eighth package of sanctions against Russia. The relevant legislation can be found here. In particular, Council Regulation (EU) 2022/1904 (“the Regulation”) amending Regulation (EU) No 833/2014, includes a number of additional restrictive measures.
As advised in our previous update, on 10th August, 2022, the EU published updated FAQs (the “August FAQs”) clarifying the application of provisions (more particularly Article 3i and 3j of Council Regulation 2022/576 (“the Regulation”)) relating to the carriage of certain cargoes from Russia, including coal and other solid fossil fuels and fertiliser.
The Russia (Sanctions)(EU Exit)(Amendment)(No.14) Regulations 2022 (“the Regulations”) came into force on 21st July, 2022, introducing further amendments to The Russia (Sanctions)(Exit) Regulations 2019. The purpose of this update is to provide a summary of some of the restrictions introduced by the Regulations that are most relevant to Members.
The purpose of this update is to provide Members with a summary of recent developments with regard to EU sanctions.
On 3rd June, 2022, the EU decided to adopt a sixth package of sanctions against Russia and Belarus. The relevant legislation implementing this latest package of sanctions can be found here.
Of particular relevance to Members will be the ban on the import of Russian oil into the EU, and the prohibition on insurance for the transport of Russian oil to third countries.
The UK has recently imposed further sanctions on Russia, publishing the Russia (Sanctions) (EU Exit) (Amendment) (No. 7) Regulations 2022 on 30th March, 2022, and the Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations 2022 on 14th April, 2022.
On 8th April, 2022 the EU implemented a fifth package of sanctions on Russia by way of Council Decision (CFSP) 2022/578, Council Regulation 2022/576,and Council Regulation 2022/581.
On 5th March, 2022, Singapore became the first South East Asian country to impose sanctions against the Russian regime in response to the invasion of Ukraine. This is the first time Singapore has imposed unilateral sanctions of its own since the Vietnamese invasion of Cambodia in 1978.
On 15th March, 2022 the EU implemented further sanctions on Russia by way of Council Regulation (EU) 2022/427 and Council Regulation (EU) 2022/428.
As well as 15 individuals, Council Regulation (EU) 2022/427 adds nine entities operating in the shipping, aviation, military and dual-use and machine building sectors to the designated list.
The relevant UK legislation regarding sanctions relating to Russia is The Russia (Sanctions) (EU Exit) Regulations 2019 which has recently been amended by six additional regulations (“the Amendment Regulations”) following the outbreak of armed conflict in Ukraine.