Price Cap Coalition Compliance and Enforcement Alert (February 1, 2024)

Date issued: Feb. 01 2024

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TURBOFAC Commentary (190 words)

Notes:

1) Compare OFAC Guidance on Implementation of the Price Cap Policy for Crude Oil and Petroleum Products of Russian Federation Origin (Updated on December 20, 2023), which, prior to this, was the last document attributable to OFAC setting out diligence expectations related to the price cap, and especially diligence expectations U.S. persons would need to meet in order to qualify for the safe harbor policy articulated in the December 20, 2023 guidance document.

As a general comment, it is not clear how the statements in the document relate to OFAC’s pre-existing guidance. There are many statements to the effect of “stakeholders are encouraged to” and “industry stakeholders should,” but for OFAC purposes, there is no clear connection between the recommendations and eligibility for the safe harbor and/or scope of the actual prohibitions in place. For example, the document says that...