OFAC alert warns of possible evasion of Russian oil price cap by US nationals
The US Office of Foreign Assets Control (‘OFAC’) has issued an alert warning US nationals about possible evasion of the price cap on crude oil of Russian origin, particularly involving oil exported through the Eastern Siberia Pacific Ocean (‘ESPO’) pipeline and ports on the Russian east coast.
OFAC said it is aware of reports that oil exported through ports such as Kozmino may be trading above the $60 price cap on Russian oil imposed by the United States and its allies, and that US nationals may have unknowingly provided services for those shipments.
‘US persons providing covered services are required to reject participating in an evasive transaction or a transaction that violates the price cap determinations, and to report such a transaction to OFAC,’ the 17 April notice advised.
OFAC said some tankers may be manipulating their Automatic Identification Systems (‘AIS’) to disguise their ports of call or hidden ship-to-ship transfers of Russian oil.
It recommended that: ‘Good-faith actors, including shipowners and other service providers, can use the recordkeeping and attestations described in the Price Cap Guidance to be afforded safe harbor from OFAC enforcement if someone causes them to inadvertently violate the price cap determinations.’
