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Regarding the situation in Ukraine generally and the sanctions imposed upon Russia (click here), the following additional sanctions have been introduced:
US Sanctions
- Further Russian banks have been sanctioned:
- Otkritie and Novikombank (and their subsidiaries worldwide), and
- VTB Bank PJSC (VTB), Russia's second-largest bank, and 20 of its subsidiaries
- US lawyers Holland & Knight LLP have commented that “Any entities owned 50 percent or more, directly or indirectly, by these or other SDNs are also subject to full U.S. blocking sanctions, even if the entities do not formally appear on the SDN List… non-U.S. persons are also prohibited from engaging in transactions or other business dealings involving the banks if those activities have a direct or indirect nexus with the United States or U.S. persons. Non-U.S. financial institutions and companies could also be subject to secondary sanctions, including potentially being added to the SDN List themselves, if they conduct a “significant” transaction with either institution following the imposition of sanctions.”
- Further and pursuant to Directive 3 under Executive Order 14024, US OFAC expanded Russia related debt and equity restrictions to additional companies critical to the Russian economy (prohibiting transactions and dealings by US persons or within the US in new debt of longer than 14 days maturity and new equity).
EU Sanctions (as reported by EU Press Release)
Individual sanctions
- In addition to freezing the assets of the Russian President and Minister of Foreign Affairs, the EU will impose restrictive measures on members of the National Security Council of the Russian Federation who supported Russia’s immediate recognition of the two non-government-controlled areas of the Donetsk and Luhansk oblasts of Ukraine as independent entities. Sanctions will also be extended to the remaining members of the Russian State Duma, who ratified the government decision of the Treaty of Friendship, Cooperation and Mutual Assistance between the Russian Federation and the two entities.
- The EU will also target those individuals who facilitated Russian military aggression from Belarus.
Financial sanctions
- The package adopted further expands the existing financial restrictions, thereby cutting Russian access to the most important capital markets. It also prohibits the listing and provision of services in relation to shares of Russian state-owned entities on EU trading venues. In addition, it introduces new measures which significantly limit the financial inflows from Russia to the EU, by prohibiting the acceptance of deposits exceeding certain values from Russian nationals or residents, the holding of accounts of Russian clients by the EU Central Securities Depositories, as well as the selling of euro-denominated securities to Russian clients.
- These sanctions will target 70% of the Russian banking market, and key state-owned companies, including in the field of defence.
Energy sector
- The EU will prohibit the sale, supply, transfer or export to Russia of specific goods and technologies in oil refining, and will introduce restrictions on the provision of related services.
- By introducing such export ban, the EU intends to hit the Russian oil sector, and make it impossible for Russia to upgrade its oil refineries.
- Russia's export revenues accounted for EUR 24 billion in 2019.
Transport sector
- The EU introduced an export ban covering goods and technology in the aviation and space industry, as well as a prohibition on the provision of insurance and reinsurance and maintenance services related to those goods and technology. The EU will also prohibit the provision of related technical and financial assistance.
- This ban on the sale of all aircrafts, spare parts and equipment to Russian airlines will degrade one of the key sectors of Russia's economy and the country's connectivity, as three quarters of Russia's current commercial air fleet were built in the EU, the US and Canada.
Technology sector
The EU has imposed further restrictions on exports of dual-use goods and technology, as well as restrictions on exports of certain goods and technology which might contribute to Russia’s technological enhancement of its defence and security sector. This will include products such as semiconductors or cutting-edge technologies.
UK Sanctions
- Additional companies and financial institutions have been added to the sanctions list
- New restrictions on trade and export controls against Russia’s hi-tech and strategic industries have been announced:
(a) All dual-use export licences to cover components which can be used for military purposes have been suspended with immediate effect and
(b) The United Kingdom will stop exports of high-tech items and oil refinery equipment in the next few days
- Russia’s national airline Aeroflot has been banned from UK airspace
This is a fast-developing situation and there may be other sanctions and details that we have not mentioned and/or are not yet available. Further News Alerts will follow on any additional sanctions that are implemented.
Full advisory at the following link.
https://www.londonpandi.com/knowledge/news-alerts/ukraine-local-and-sanctions-update-of-24-february/
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The Ukrainian armed forces made a post on social media claiming that the Romanian-flagged bunkering vessel Millenium Spirit was hit off Odessa by a Russian ship.
At this point information is still being confirmed, with the Ukrainian armed forces noting that there has been no communication with the vessel, providing no further details.
Earlier, regarding another incident, RIA Novosti had quoted a message from the border service stating that at 11:00hrs UTC 24 February 22, in the Sea of Azov, 21nm South of Mariupol, Russian civilian cargo ships SGV-FLOT and SERAPHIM SAROVSKIY were subjected to a missile attack by the Armed Forces of Ukraine.
However, Dryad notes that details regarding the events surrounding these vessels remain unclear.
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The Chinese Ministry of Transport, Ministry of Foreign Affairs and General Administration of Customs has recently jointly issued a notice on the remote prevention and control of the COVID-19 epidemic for the crew on ships on international voyages.
For vessels planning on making crew changes in the PRC, the notice sets forth the requirements for seafarers to conduct onboard COVID-19 testing prior to arrival.
All shipboard personnel are required to be tested before the ship leaving the last foreign port before its outbound voyage to the first port of arrival in China.
During the voyage, testing of all shipboard personnel has to be performed on the first, fourth, seventh and fourteenth days of the voyage as applicable depending upon the duration of the voyage.
Ideally, the tests should be executed using a nucleic acid test (NAT), a form of polymerase chain reaction (PCR) test, but the use of rapid test kits is acceptable. Arrangements should be made by vessel operators in advance to obtain the required number of test kits on board.
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The shipping industry is experiencing increased drug smuggling incidents in Brazil as reported local correspondents.
Namely, it is alarming that in January 2022, shipping giant MSC and MEDLOG declared that they will suspend their inland operations across Brazil due to the rising threat of drug traffickers who victimise the container trade.
The country is considered a key maritime hub for the illicit drug trade as its unprotected shores which neighbour Colombia, Bolivia, and Peru, facilitate the transport of drugs to Europe, Africa, and Asia.
More specifically, increased vigilance is required at Santos, Paranaguá, Vitória, Rio de Janeiro, Natal, and Santarém.
What is more, Covid-19 has made the drug traffickers even more resilient and creative in their game of hide and seek. Drugs are commonly hidden in containers, cargo spaces, or attached to the hull of ships. Another method for disguising the drugs is to mix them with a liquid substance to elude detection.