The 10 January 2025 designations mark one of the most profound steps yet, in the US’ attempts to force adherence to Price Cap and tighten the noose on sanctions busting activities.
2024 was defined by G7 attempts to combat circumvention of key sanctions policies against Russia, including price cap.
The approach has been multi-faceted; promulgation of anti-circumvention regulations; evolving guidance and best practices; use of investigatory powers; and softer steps such as interrogation of tanker insurance through the Dover Straits.
The reality remains, however, that the designation of major oil producers, vessels, operators, insurers and traders remains the most powerful tool in the Regulator’s arsenal. Faced with the proliferation of parallel fleet trading, it is no surprised that the regulators have seen fit to return to these more crude, yet effective measures.
Speaker:
Alexander Brandt, Partner, Transportation at Reed Smith
Alex is a partner in the Transportation Industry Group and the lead member of its sanctions practice, having qualified with Reed Smith in February 2014.
Alex advises insurers, owners, charterers, brokers and traders on all aspects of sanctions-related challenges, providing analysis of applicable legislation, assistance with crucial due diligence work and training.
He has extensive experience in OFAC investigations, disclosures and enforcement actions and has been centrally involved in many of the most high profile designations, seizures and enforcement actions brought against members of the international shipping community by the U.S. Government. One client notes that Alex is “amazing at quick response time, personalised follow-up, good understanding of customer’s business, pleasant communication, ability to deal on short notice with very urgent and non-conventional situations” (The Legal 500 UK, Regulatory Investigations and Corporate Crime).
Alex also has wide ranging experience drafting protective language for transportation contracts and financing arrangements, and has worked with major lenders and other organisations to develop best-in-class compliance programmes.
In addition to his role in the sanctions practice, Alex advises on contractual and tortious rights and obligations pertaining to a wide range of dry shipping matters, including charterparties, P&I club rules, bills of lading, ship sales and purchases, and shipbuilding. He is an experienced litigator, familiar with the High Court, arbitration and mediation. Alex also drafts transactional documents in support of transportation-related undertakings, including sale agreements, settlement and escrow agreements and contracts for charterparties.
Alex has spent four years in Reed Smith’s Hong Kong office, where in addition to his dry shipping work, he has assisted in a number of casualty investigations and criminal prosecutions arising from major casualties.
These latest measures stand as stark reminder of the need to conduct comprehensive due diligence in respect of high risk trades, and for compliance practices to evolve in line with prevailing trends.