The US Office of Foreign Assets Control (OFAC) has issued a new license authorizing certain offloading of Russian oil and petroleum products in India.
According to OFAC, the license permits the offloading of oil or petroleum at any Indian port or to an entity organized under the laws of India. The transactions authorized by the license include those necessary for the “safe docking and anchoring of vessels,” as well as activities related to the preservation of crew health or safety, emergency repairs, environmental mitigation, vessel management services, crewing, bunkering, piloting, registration, flagging, insurance, classification, and salvage.
The license specifically covers Russian Federation-origin crude oil and petroleum products subject to sanctions under the Russian Harmful Foreign Activities Sanctions Regulations (31 CFR part 587) or the Ukraine-/Russia-Related Sanctions Regulations (31 CFR part 589).
OFAC Clarifies License Terms
OFAC emphasized that transactions authorized by the license must be necessary for the safe docking and anchoring of vessels, as well as activities related to crew health or safety, emergency repairs, environmental mitigation, vessel management services, crewing, bunkering, piloting, registration, flagging, insurance, classification, and salvage. The agency also noted that transactions involving Russian Federation-origin crude oil and petroleum products subject to sanctions are only authorized if they meet the specific criteria outlined in the license.
Indian Ports and Entities Impacted
The new OFAC license has implications for Indian ports and entities involved in the offloading of Russian oil and petroleum products. According to industry sources, several major Indian ports, including Mumbai, Chennai, and Kochi, are likely to be affected by the license. Additionally, Indian entities organized under the laws of India that engage in activities related to vessel management services, crewing, bunkering, piloting, registration, flagging, insurance, classification, and salvage may also be impacted.
Sanctions Context
The new OFAC license is part of a broader effort to address concerns about Russian oil and petroleum products. The US government has imposed sanctions on several Russian entities and individuals in response to Russia’s actions in Ukraine and other regions. The new license aims to strike a balance between enforcing these sanctions while also allowing for the safe and efficient offloading of Russian oil and petroleum products in India.
In conclusion, the new OFAC license authorizing certain offloading of Russian oil and petroleum products in India marks an important development in the ongoing efforts to address concerns about Russian energy exports. As the global energy landscape continues to evolve, it is essential for stakeholders to stay informed about these developments and their implications for trade and commerce.
Original Article: New OFAC License Authorizes Certain Offloading of Russian Oil, Petroleum in India — Exportcompliancedaily