We refer to our prior circulars regarding sanctions imposed on Russia pursuant to the escalation of the conflict in Ukraine.
Over the weekend of 26-27 February, a large number of additional sanctions have been announced by EU, together with other members of the G7 in respect of the Russian Federation and Belarus.
The main updates are listed below:
- Asset freezes have been imposes in respect of foreign held assets of President of the Russian Federation, Vladimir Putin, and foreign minister Sergei Lavrov. Further asset freezes and travel bans of Russian individuals linked to the Kremlin and Russian Parliament;
- EU, US, Finland and Canada have closed their airspace for Russian owned or Russian operated airplanes;
- Belarus officials have been added to the list of asset freezes and travel bans;
- EU has also announced additional restrictions on Belarus exports of tobacco, wood and timber, cement, iron and steel as well as on the export of dual use goods to Belarus.
- US, UK, Canada and EU have announced the exclusion of the SWIFT monetary system of the Russian Central Bank and the freezing of all of its foreign-held assets. Furthermore a number of Russian banks will be excluded from the SWIFT system and discussions are ongoing for a broader freeze on the use of the SWIFT system; and
- UK, US, EU and Canada have imposed additional sanctions against Russian banks and companies.
We reiterate our recommendation to ensure appropriate sanction checks are performed for any Russia related shipments, the Black Sea territories of Ukraine and Russia are avoided where possible. We expect that the sanctions relating to SWIFT payments will likely complicate operational matters such as port and agency expenses in Russia ports. Members should be aware that the same will most likely apply to payments to be made by their charterers or cargo interests in respect of Russian in- or outbound cargo.
Further updates will be published from time to time. Members are invited to contact us with any questions or concerns.