Amendments to the Price Cap Attestation Model and EU Sanctions 12th Package

The US, UK and EU have all updated their guidance concerning the Russian oil Price Cap attestation model. The changes will be in force after 20 February 2024.

The UK will require attestations per voyage in future. There will also be a requirement to collate itemised ancillary costs associated with the voyage such as freight and insurance costs plus licencing, inspection and port fees, etc. These sort of ancillary costs may be requested by shipowners, P&I, insurers and managers from Tier 2 and Tier 1 providers. The timing of when attestations must be provided is also set out. 

The US will also require attestations on a per voyage basis. Again, Tier 3 providers may request itemised pricing information for ancillary costs from Tier 2 and Tier 1 providers. 

The EU has made similar changes which are described below. 

In all three cases shipowners, managers, P&I, insurers must keep records for up to five year and provide attestations and ancillary costs information to the relevant authorities when requested. 

EU – 12^th Package 

The EU has gone further than the UK and US and has already published its revised regulation concerning the Price Cap. The amendments to the model, described above, also appear in the revision to Art 3n of EU 833/2014. 

“[S]ervice providers with no access to the purchase price per barrel laid down in Annex XI of such products shall collect itemised price information for ancillary costs as provided by operators further up the supply chain of Russian crude oil or petroleum product trade. Such itemised price information shall be provided to counterparties and competent authorities, upon their request” 

In revisions to Art 3q, the EU have banned the sale of tankers to Russia or for use in Russia and has also legislated for a reporting mechanism concerning the sale of oil and product tankers. 

The ban can be overcome with authorisation from a Member State. 

The reporting requirements are:

• For the sale of all tankers between 5 December 2022 and 19 December 2023; these sales must be reported to the relevant Member State (unless sold within the EU) before 20 February 2024;
• From now on, all tanker sales must be reported to the relevant Member State (unless sold within the EU) immediately. 

Further revisions have also been adopted in several other areas:

• Revenue generating goods – Restrictions on the import and export of liquefied propane gas (not LNG), pig iron and spiegeleisen, copper wires, aluminium wires, foil, tubes and pipes. Certain exceptions and transitional periods are provided for where contracts had already been concluded by 19 December 2023.
• Oil (Article 3m) exceptions - In order to ensure the security of supply of certain Member States, it was appropriate to prolong by an additional year specific derogations from the prohibition on imports from Russia of crude oil and petroleum products.
• Diamonds - Prohibition on direct or indirect import, purchase and transfer of diamonds from Russia from 1 January 2024. Including a progressive phasing-in, from 1 March 2024 until 1 September 2024, of an indirect import ban on Russian diamonds when processed in third countries other than Russia.
• Listed entities – 29 new entities are listed.
• Russia war capabilities – Prohibition on items which will contribute to the development or production of its military systems, including chemicals, lithium batteries, thermostats, DC motors and servomotors for unmanned aerial vehicles, machine tools and machinery parts.
• Russia industrial capacity – Restrictions on exports of goods which could contribute in particular to the enhancement of Russian industrial capacities.

For further information and advice please contact the sanctions team:

Charles Patterson 

Xander Vallance

Francesca Koenders