Following the Russian invasion of Ukraine in February 2022, an unprecedented amount of sanctions have been issued against Russia to restrict the revenue Russia derives from its petroleum exports
On 5 December 2022, the European Union (EU) introduced the first of two bans on Russian seaborne crude oil imports. From 5 February 2023, the EU has implemented the second ban on Russian seaborne refined oil imports and expanded as planned to set price caps for petroleum products of Russian origins which fall under the CN code 2710. The level of the price cap is set by the coalition of countries backing the scheme – the EU, G7 countries and Australia. This is intended to address inflation and stabilise global energy prices, alongside the primary purpose of reducing Russian revenues.
The price cap is the price per barrel at or below which petroleum products from Russia are exempt from the exclusions to provide:
The Two price caps that have been set are as follows:
Legislation and guidance giving effect to the Price Cap Scheme has been updated and published by the European Union, the United Kingdom the United States, and Australia and this Notice describes the impact of the scheme on shipowners, charterers and cover for such trades.
Details of legislation in respect of the European Union, United Kingdom, United States, and Australia are provided from page 3.
A shipowner or charterer that intends to transport Russian crude oil cargoes after 5 December 2022 and/or petroleum cargoes after 5 February 2023 will need to provide its P&I Insurer with an attestation that it will not for the duration of the period of insurance carry Russian oil and/or petroleum cargoes which have been sold at a price that for the period it is on board the vessel has exceeded the Price Cap. The attestation required is Annex II to this notice.
Additionally, shipowners and charterers currently engaged in trades involving the carriage of Russian petroleum products that commenced prior to 5 February 2023, but which will be completed by 1 April 2023 will need to complete a separate attestation. The attestation required is Annex I to this notice. Please download and complete the attestation(s) and email this to your usual contact or alternatively email@example.com