Alert on the carriage of Russian origin oil and petroleum products and compliance

Members and assureds should note the compliance requirements set out below for the current and previous policy years.

Policy year 2023/24: annual attestations of Price Cap compliance

As set out in the Club’s circular of 23 February 2023, members potentially involved in the carriage of Russian origin oil and/or petroleum products are required for policy year 2023/24 to submit an annual attestation of Price Cap compliance in the form provided in annex A of the circular.

Cover for claims arising out of voyages connected with the carriage of Russian origin cargo may be unavailable until London P&I has received the attestation.

Members may use the company that arranged for the fleet to be entered with London P&I, normally the owners’ managers, as the company on whose behalf the attestation is signed. The completed attestation should be sent to [email protected].

Policy year 2024/25: additional requirements for carriage of Russian origin oil and petroleum products

As set out in the Club’s Circular of 6 February 2024, developments in sanctions imposed by the UK, EU and US mean that members engaging in this trade are required, for cargoes loaded after 20 February 2024, to provide:

• an attestation of Price Cap compliance on a per voyage basis. Members may use the company that arranged for the fleet to be entered with London P&I, normally the owners’ managers, as the company on whose behalf the attestation is signed. The attestation should be sent to [email protected].
• sufficient ancillary costs information to show Price Cap compliance if requested by London P&I.

Based on official guidance to the industry, London P&I is likely to request ancillary costs information for trades involving red flag operations, including:

• STS operations outside Russia in high-risk areas for non-price cap compliance
• loading operations in Russia involving opaque charterers and/or exporters.

Members should note the following:

• Cover for claims arising out of voyages connected with the carriage of Russian origin cargo may be unavailable pending receipt of the attestation for the relevant voyage and, if required, sufficient ancillary costs information.
• London P&I is unlikely to reinstate cover for such claims if members are unable to provide sufficient ancillary costs information because they do not have contractual rights to obtain that information in their charterparties and any sub-charterparty.
• London P&I is obliged to notify a failure to provide sufficient ancillary costs information to the relevant authorities of the Price Cap Coalition, who may take further action against the member even if the member is not subject to a Price Cap Coalition country.

Members should therefore ensure that their charterparty terms require charterers and any sub-charterers to provide sufficient ancillary cost information promptly when requested. Appropriate clauses have been made available by industry bodies such as Intertanko and Bimco.

If you have any queries about any of the above, please contact your usual underwriting contacts, who will liaise further with London P&I’s Sanctions team if necessary.