OFSI - Oil Services Ban and Price Cap Information Published

The Office for Financial Sanction Implementation, part of HM Treasury that enables financial sanctions to contribute to the UK's foreign policy, national security goals, and confidence, in the UK financial services sector has published the set price cap on Russian crude oil (traded by firms shipping oil to third countries) at USD $60. The result is that UK companies can only provide services facilitating the maritime transport of Russian oil traded at or below this cap (USD $60).

The Oil Price Cap on Russian crude oil comes into effect on 5 December, and the Oil Price Cap on Russian refined oil products on 5 February. General Licences to facilitate the Oil Price Cap can be found at the OFSI website and by contacting via the email below. These facilities include a wind-down General Licence which permits contracts to ship Russian oil traded at a point above the price cap where the Russian oil is loaded before 5 December 2022 and unloaded at the destination port by 19 January 2023.

Bespoke forms for required reporting, suspected breaches, and specific licence applications so if your company is in the process of winding down this activity or is looking to apply for special considerations, you can find a link to the trading forms below. You can direct any reporting or queries to oilpricecap.OFSI@hmtreasury.gov.uk

https://www.gov.uk/government/publications/russian-oil-services-ban