The Republic of the Marshall Islands (RMI) Maritime Administrator issued an advisory informing that the US has designated Petróleos de Venezuela, S.A. (PdVSA) as a Specially Designated National and Blocked Person (SDN) and therefore RMI will be unable to provide services to vessels linked to PdVSA.
On 28 January 2019, the US put the state-owned oil and natural gas company in its SDN list, which means that US persons may not engage in any dealings with the company or any of its direct or indirect subsidiaries. The sanction only applies to US persons at this time.
However, the US has signaled that foreign persons may be subject to secondary sanctions if it is found that they have provided material support or goods or services to PdVSA, meaning those foreign persons could potentially be listed as SDNs themselves.
The US has also listed two foreign flagged vessels and the vessels’ registered owners as SDNs further to the vessels trading between Venezuela and Cuba.
Accordingly, while Venezuela is not subject to a US comprehensive embargo at this time, because PdVSA has been listed as an SDN, and because foreign persons who deal with PdVSA may be subject to secondary sanctions, the Republic of the Marshall Islands (RMI) Maritime Administrator will be unable to provide services to those vessels under charter to PdVSA, under control of PdVSA, or trading with PdVSA,
…RMI explained.
Further, such vessels may be subject to suspension.
In addition to the above, the Administrator encourages all RMI registered vessel owners to be cautious in any anticipated dealings with PdVSA.
RMI has recently been made aware that the Venezuelan government may have forcibly possessed foreign flagged vessels while the vessels were in Venezuelan waters.
