EU sanctions against the Government of Syria have been effective since May 2011. The EU trade sanctions measures currently in force are set out in Council Regulation (EU) No 36/2012, as amended and Council Regulation (EU) No 168/2012, which amends Council Regulation (EU) No 509/2012. The provisions most relevant to the shipping and marine insurance industries are:
- prohibitions on the sale, supply, transfer or export of listed luxury goods and certain dual-use items, chemicals and oil and petroleum products, including a ban against providing, directly or indirectly, financial assistance, insurance or reinsurance related to such activities,
- a prohibition on the transport of crude oil and petroleum products of Syrian origin,
- a prohibition on the provision of key equipment and technology for use in the oil and gas industry in Syria, or to be used in the construction or installation in Syria of new power plants for electricity production,
- a prohibition on the provision of insurance and reinsurance to the state of Syria or those acting onits behalf,
- a prohibition on the sale, supply, transfer or export of arms and related material of all types, and of equipment that could be used for internal repression,
- asset freezes on a number of individuals and entities and prohibitions on making funds or economic resources available (including the supply of goods) to designated persons held responsible for the violent repression of civilians.
In addition, on 12 December 2014 the EU issued Regulation 1323/2014, prohibiting the sale, supply,transfer or export of jet fuel and fuel additives to any Syrian entity or for use in Syria and the insurance and re-insurance of those activities. There are very limited exceptions.
United States sanctionsThe United States has also continued to apply trade and related sanctions against Syria and on Syrian persons and entities, in particular under Executive Order 13582. Prohibited activities include:
- making new investments in Syria
- exporting, re-exporting, selling or supplying directly or indirectly, of any services to Syria,
- importing or dealing in Syrian-origin petroleum products.
Although the US sanctions are not designed to have extraterritorial effect on non-US persons, provides for the blocking of property located in the US of any person (including non-US persons) who is determined to have materially assisted, sponsored, or provided financial, material or technological support for, or goods and services in support of, any person whose property and interests in property are blocked pursuant to this order. The term ‘materially’ is not defined and is determined in each case.
While the current trade sanctions and designation of Syrian persons and entities remain in force, operators considering trade to and from Syria are advised to contact the Managers for further advice. In any event howeveroperators intending to fix voyages to Syria should perform appropriate levels of due diligence on all parties, including shippers, receivers and their principals and take steps to mitigate the risk of charterparties offending sanctions law.
All clubs in the International Group have issued a similarly worded circular.
Further information may be found by reading the circular below
Source: Ship0wners P&I Club