Gibraltar issues notice on the Russian Oil Price Cap
The Gibraltar Maritime Administration has issued the Shipping Information Notice about the Russian Oil Price Cap.
This information notice issued on November 21st, 2022 replicates the United Kingdom Government’s advice on the implementation of the Russian Oil Price Cap.
The UK Government laid down legislation on the 3rd November 2022, which introduced a ban on UK ships and services facilitating the maritime transport of Russian crude oil.
The legislation will pave the way for a cap on the price of seaborne Russian crude
oil.
In addition, the legislation introduced on the 3rd November 2022, will prevent countries from using the UK’s services to transport Russian oil unless it is purchased at or below the Oil Price Cap set by the Price Cap Coalition of the G7 and Australia.
The ban on the relevant services, which in addition to shipping also include insurance and brokerage, will be coupled with a General Licence, which will be published before the 05 December 2022.
The General Licence, will lay the basis for an Oil Price Cap exception that will allow third countries to continue accessing services only if purchasing Russian oil at or below the cap.
The level of the price cap will be set by the coalition in due course.
Further measures on refined oil products coming into force on the 5th February2023, to align with EU timelines for a parallel measure.
The UK HM Treasury have issued some advice and guidance on the subject matter (i.e. “UK Maritime Services Prohibition and Oil Price Cap Guidance”: https://ofsi.blog.gov.uk/2022/11/14/oil-price-cap-update/).
To enforce the scheme the UK’s HM Treasury has set up a new team, based in the Office of Financial Sanctions Implementation (OFSI).
The OFSI will:
1) Lead the Government’s work on the licencing and enforcement system for the Oil Price Cap;
2) Engage with industry to ensure readiness for the cap; and 3) Monitor the level and impact of the price cap.
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