On 1 February 2024, the United Kingdom and the G7+ Coalition partners, comprising the G7, the European Union, and Australia, have issued an alert to support governments and industry to strengthen Russian oil price cap compliance.
The Oil Price Cap (OPC), initiated by the "Price Cap Coalition" aims to limit Russian revenues for the Ukraine war while ensuring global oil flow and energy security. It also mandates compliance from industry stakeholders involved in trading Russian oil and oil products. The Coalition actively monitors for evasion, offering guidance and support to governments and stakeholders.
This alert provides an overview of key examples that are being used to evade the OPC, such as falsified documentation, opaque shipping costs, and complex corporate structures. It offers recommendations for identifying and mitigating these risks. Additionally, it outlines the process for reporting suspected breaches of the OPC across the Price Cap Coalition.
The alert draws on previous guidance and statements, emphasising the importance for industry stakeholders to fully consider its implications and adopt recommended measures to enhance compliance and reduce exposure to evasion risks. Stakeholders are encouraged to share this alert widely within their organisations and throughout the supply chain, and relevant industry associations are urged to complement it with their own advisories tailored to specific sectors.
The Price Cap Coalition - Oil Price Cap compliance and enforcement alert can be accessed here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
