The Decision indicates a prohibition on making funds
On 7 June 2011, the EU Council published a Council Decision indicating its intention to add six port authorities to its list of ‘designated’ persons or entities who will fall within the current sanctions in force against Libya.
Freezing of assets of these six port authorities will begin once the Regulation implementing the Council Decision has been published. This is expected early next week.
The six listed port authorities controlled by the Gaddafi regime are:
- Port authority of Tripoli
- Port authority of Al Khoms
- Port authority of Brega
- Port authority of Ras Lanuf
- Port authority of Zawia
- Port authority of Zuwara
The Decision indicates a prohibition on making funds, financial assets to economic resources, available to these port authorities directly or indirectly, e.g. payment of port fees. So anyone subject to EU jurisdiction will not be able to pay any dues to the authorities listed. What is not clear is whether the prohibition could be circumvented by, for example, making the payment to the port through a third party. The Regulation may clear up this ambiguity.
There is a ‘prior contracts’ exemption for contracts concluded before the entry into force of the Decision until 15 July 2011. Such exemption does not, however, apply to contracts relating to oil, gas and refined products. Note that for ports not listed, there is no asset freeze and payments are not prohibited.
HM Treasury has published some guidance ahead of implementing the Regulation and has created a template for Libya-related enquiries, which can be accessed here.
Source: INTERTANKO
