OFAC's November 22, 2022, actions
November 22, 2022
On Tuesday, OFAC issued Guidance on Implementation of the Price Cap Policy for Crude Oil of Russian Federation Origin, published a Russia-related Determination, and issued three Russia-related General Licenses.
Determination
The Determination, issued under the authority of Executive Order 14071, is titled "Prohibitions on Certain Services as They Relate to the Maritime Transport of Crude Oil of Russian Federation Origin." The Secretaries of the Treasury and State have determined that the prohibitions in section l(a)(ii) of E.O. 14071 shall apply to the following categories of services as they relate to the maritime transport of crude oil of Russian Federation origin (collectively, the "Covered Services"):
- Trading/commodities brokering
- Financing
- Shipping
- Insurance, including reinsurance and protection and indemnity
- Flagging
- Customs brokering
As a result, the following activities are prohibited, except to the extent provided by law, or unless licensed or otherwise authorized by the Office of Foreign Assets Control: the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of any of the Covered Services to any person located in the Russian Federation.
Notwithstanding that prohibition, the Covered Services are hereby authorized when the price of the crude oil of Russian Federation origin does not exceed the relevant price cap determined by the Secretary of the Treasury, in consultation with the Secretary of State. The prohibitions on Covered Services in the determination will become effective at 12:01 a.m. EST on December 5, 2022. The determination excludes Covered Services with respect to crude oil of Russian Federation origin when such crude oil is loaded onto a vessel at the port of loading prior to 12:01 a.m. eastern standard time on December 5, 2022, and unloaded at the port of destination prior to 12:01 a.m. eastern standard time on January 19, 2023.
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