Back

OFAC Guidance on Implementation of the Price Cap Policy for Crude Oil and Petroleum Products of Russian Federation Origin (Updated on December 20, 2023)

Date issued: Dec. 20 2023

You've hit a wall. Sign in if you have an account, or learn more about TURBOFAC and subscription options.
TURBOFAC is a module of the compliance platform OverRuled. To learn more about OverRuled, visit www.overruled.com.

PRINT

February 3, 2023


Revised on: December 20, 2023


OFAC Guidance on Implementation of the Price Cap Policy for Crude Oil and Petroleum Products of Russian Federation Origin


I. OVERVIEW OF THE DETERMINATIONS AND THE PRICE CAP 2


II. KEY COMPONENTS AND DEFINITIONS 3

The price caps 3

When does a price cap “start” and “stop”? 4

Covered articles 5

Covered services 5

Processing, clearing, or sending of payments by intermediary banks 6


III. SAFE HARBOR 6

Overview of safe harbor 6

Due diligence 8

Specific guidance per tier 8

Table of safe harbor documentation 11

Sample attestationv 12


IV. COMPLIANCE 12


V. LICENSING 13

General Licenses 13

Sakhalin-2 13

EU derogations 13

Emergency services for vessels 14

Specific licensing 14


I. OVERVIEW OF THE DETERMINATIONS AND THE PRICE CAP


The United States is part of an international coalition, including the G7, the European Union, and Australia, that have agreed to prohibit the import of crude oil and petroleum products of Russian Federation origin (the “Price Cap Coalition”). These countries, home to many best-in-class financial...

Click the appropriate link below for access to this file.

Click the appropriate link below for access to this file.

TURBOFAC Commentary (390 words)

Notes:


1) Refer generally to Consolidated Comment on the Prohibitions on Certain Services as They Relate to the Maritime Transport of Crude Oil and Petroleum Products of Russian Federation Origin (the Price Cap).


2) Note that Updated 2-4-23 Guidance supersedes the original 11-22-22 Guidance, which addressed the crude oil price cap only (see Preliminary Guidance on Implementation of a Maritime Services Policy and Related Price Exception for Seaborne Russian Oil).


3) Substantive Differences Between the 11-22-22 Guidance and the Consolidated/Updated 2-4-23 Guidance


With limited exceptions described below, the amendments to the 11-22-22 Guidance made through the consolidated/updated 2-4-23 Guidance serve only to add references to the price cap concerning petroleum products to places where, previously, there was only a reference to the price cap concerning crude oil. Exceptions (see pp. 6-7 of the 2-4-23 Guidance) are as follows:


i) OFAC clarifies that, for petroleum products, OFAC will “consider blending...