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.
Following a review by the BIMCO sanctions sub-committee, BIMCO has released new sanctions clauses for both time and voyage charters. The new clauses have replaced the existing BIMCO sanctions and designated entities clauses, and they are designed to create more contractual certainty for the parties in an increasingly complex sanctions landscape. Click to read more...
Following our update on 13th December, 2019, Members are advised that OFAC has now (as of 18th December, 2019) de-listed Ventspills Freeport Authority, following the Latvian government’s removal of the port from the...
Ventspils Freeport Authority has been added to OFAC’s SDN list, in conjunction with sanctions imposed on Mr Aivars Lembergs...
Enhanced sanctions have been imposed against IRSL and E-Sail as part of the US’s action against Iranian entities linked to the proliferation of weapons of mass destruction...
As reported on 13th October, 2019, the US imposed sanctions on Turkey in response to Turkey’s military activity in Syria. Only 10 days later, on 23rd October, 2019, following Turkey’s agreement to a ceasefire in Syria, the sanctions have been lifted. There are no longer any US sanctions in place against Turkey.
In response to President Trump’s announcement on 6th October 2019 of his intended withdrawal of the remaining US forces in northern Syria, the Turkish military began an incursion into northern Syria designed to establish a “safe zone” along the northern border and to remove the area from the control and influence of the Kurdish Syrian Democratic Forces. The US has reacted to demonstrate its objections to Turkey’s action by issuing an Executive Order (“EO”) imposing sanctions against certain Turkish entities, governmental bodies and individuals.
The impact on charterparties and issues for consideration.
The past few decades have seen a trend of globalisation and integration across the world with the breakdown of conventional borders both via expanding international trade and increasing digital connectivity.
This bulletin summarises various recent developments in relation to US sanctions on Iran...
OFAC have produced a “Framework for OFAC Compliance” which is said to apply to all OFAC imposed sanctions. OFAC suggests that compliance with these guidelines may ultimately influence OFAC's decision as to whether to designate a relevant person or entity to the SDN List.
During April and May 2019, OFAC has added a number of non US ships and owners to the SDN list, reinforcing the extra-territoriality of EO 13806.