On October 31, 2022 the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) published FAQ 1094, which addresses the question of whether crude oil of Russian Federation origin that is loaded onto a vessel at the port of loading for maritime transport prior to December 5, 2022 is subject to the price cap.1
OFAC stated that so long as crude oil of Russian Federation origin is loaded onto a vessel at the port of loading prior to 12:01 a.m. EST on December 5, 2022 and unloaded at the port of destination prior to 12:01 a.m. EST on January 19, 2023 the oil will not be subject to the price cap.
The FAQ also clarified that U.S. service providers can continue to provide services related to the maritime transport of Russian Federation-origin crude oil purchased at a price above the price cap, provided that the crude oil is loaded onto a vessel at the port of loading for maritime transport prior to 12:01 a.m. EST on December 5, 2022 and unloaded at the port of destination prior to 12:01 a.m. EST on January 19, 2023.
OFAC reaffirmed that it anticipates publishing a determination pursuant to Executive Order 14071 implementing the maritime services policy and related price exception.
We will continue to closely monitor developments in this space.
