Possible Evasion of the Russian Oil Price Cap (Alert)

Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.

Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category). Please contact [email protected] or [email protected] with any questions on search results and efficiency.

Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.

TURBOFAC Commentary (117 words)

Notes:

1) As discussed in the context of OFAC's other Price Cap guidance at Price Cap System Note, this Alert is notable for the following reasons:

(i) The "if someone causes them to inadvertently violate the price cap determinations" language is the first explicit raising of the specter of non-U.S. persons committing sanctions violations for "causing" U.S. persons to engage in transactions that qualify for the safe harbor;

(ii) OFAC gives two "recommendations" for compliance, i.e. "Using maritime intelligence services to improve detection of AIS manipulation" and collecting evidence of itemized costs, the failure of which to adhere to appear sufficient to render a U.S. ineligible for the safe harbors that apply to "good faith" actors.

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Possible Evasion of the Russian Oil Price Cap (Alert)

TURBOFAC Commentary (117 words)