On 14 June 2023, the UK Office of Financial Sanctions Implementation (“OSFI”) published updated guidance for the Maritime Services Ban and Oil Price Cap (the “Updated Guidance”). The Updated Guidance can be found here and our previous blog posts on UK Maritime Services Ban and Oil Price Cap can be found here and here.
The Updated Guidance provides additional clarity and detail on the following:
- Wind-down periods: OFSI has introduced a 45-day wind-down period for any future changes to the Oil Price Cap, in order to allow oil already on the water to reach its destination.
- Trading in Derivatives and Futures: Trading in derivatives and futures and related derivative brokering services are now exempt from the Oil Price Cap, pursuant to the General Licence discussed below.
- “As soon as reasonably practicable”: Clarification has been added on OFSI’s view of what is considered to be taking the required steps to withdraw contracted services “as soon as reasonably practicable” in the event of a suspected breach.
OFSI has also issued General Licence INT/2023/3074680 and updated the associated publication notice. This General Licence permits trading in derivatives (defined as “a financial instrument whose value is based on the change in value of an underlying asset”) and futures (defined as “a type of derivative contract to buy or sell a specific commodity asset or security at a set future date for a set future price”) related to the supply or delivery by ship of Russian oil and oil products which would otherwise breach the prohibition in regulation 46Z9C of the UK Russia Regulations. This licence took effect from 14 June 2023 and is of indefinite duration.
