The UK has adopted The Russia (Sanctions) (EU Exit) (Amendment) (No. 16) Regulations 2022 which introduce new restrictions against Russia and expand existing ones. The Legislation enters into force on 5 December 2022.
- Prohibit the direct or indirect supply or delivery by ships of certain oil and oil products falling within commodity codes 2709 and 2710, from a place in Russia to a third country, or from one third country to another third country. The aim of this measure is to deny Russian businesses access to UK vessels that could facilitate the transportation of certain Russian oil and oil products.
- Prohibit UK persons from providing financial services, including insurance, or brokering services, to facilitate the supply or delivery of 2709 and 2710 oil and oil products from a place in Russia to a third country, or from one third country to another third country.
- Introduce exceptions to these prohibitions, including where a person provides justification to the Treasury within the relevant period that the act is an act dealing with an emergency; and where 2709 and 2710 oil and oil products originate in a country that is not Russia, are not owned by a person connected with Russia and are only being loaded in, departing from or transiting through Russia.
- Licences: A General Licence will be introduced to allow a “price cap exception where the supply or delivery by ship of 2709 and 2710 oil and oil products and the provision of related ancillary services will be available to third country importers, so long as they purchase oil below an agreed price”. Further Licences will also be introduced in certain circumstances to permit the supply of these products and the provision of related services in respect of specific activities critical to energy security.
- Bring forward the implementation date for the prohibitions relating to the import of all Russian oil and oil products into the UK from 31st December 2022 to 5th December 2022.
- Introduce extensive related reporting obligations, applying to both (i) relevant firms – which includes financial institutions authorised under Part 4A of the Financial Services and Markets Act 2000, and various other parties; and (ii) involved persons – which is defined under the new Legislation as anyone that is involved in the supply or delivery of oil and oil products, or the provision of financial services or funds or brokering services relating to the supply or delivery of oil and oil products.
Although these provisions are trade-related, the new Legislation provides that the UK Office of Financial Sanctions Implementation (OFSI) is able to impose civil monetary penalties on a person who fails to comply with these new trade measures (including to whoever fails to comply with the reporting obligations). OFSI is able to impose these civil penalties under its new strict liability enforcement framework.
The UK has also updated its Russia Guidance to reflect the changes introduced. The updated guidance can be found here.