UK Weekly Sanctions Update - Week of May 20, 2024

In this weekly update, we summarise the most notable updates in the UK sanctions world. If you have any questions in respect of any of the developments set out below, please do not hesitate to contact a member of our London Global and Government Trade team listed above.

1. Russia Sanctions

• UK Government updates maritime services ban and Oil Price Cap exception:  On May 24, 2024, OFSI updated the Oil Price Cap general licence to exclude the supply or delivery of Russian oil by, or provision of relevant services to, “specified ships”.  OFSI also updated the Oil Price Cap Guidance in relation to ship specification in Section 4.1 and 4.2 and in relation to extraordinary situations in Section 4.4.  (Russian Oil Services ban - GOV.UK (www.gov.uk))

• UK Government updates guidance on third country processed Russian diamonds measures:  On May 21, 2024, the UK Government updated its guidance on third country processed Russian diamonds measures.  In particular, the provision of a verification certificate issued by the Federal Public Service Economy at the Diamond Office in Antwerp, Belgium was added as an additional example of documentation demonstrating supply chain history of diamonds processed in third countries. (Guidance on third country processed Russian diamonds measures - GOV.UK (www.gov.uk))

• UK High Court issues judgment in Magomedov v Transneft:  On May 21, 2024, the UK High Court granted a continuation of an anti-anti-suit injunction against a Moscow court judgment, pending an English court’s decision about whether England has jurisdiction to decide the underlying dispute.  The underlying dispute relates to proceedings brought by Mr Magomedov  and a BVI company he owns in the UK against Transneft for conspiracy to remove Magomedov‘s interest in PJSC Novorossiysk Commercial Sea Port.  A Moscow court previously granted Transneft an anti-suit injunction against these proceedings on the basis that US and UK sanctions on Transneft have the effect of limiting Transneft’s access to justice in an English court. (Magomedov & Ors v PJSC Transneft & Ors [2024] EWHC 1176 (Comm) (21 May 2024) (bailii.org))

• UK Government publishes guidance on sales of oil tankers to third countries under the Russia regime:  On May 21, 2024, the ECJU published guidance for parties involved in the sale and brokering of second-hand vessels to third countries.  Among other things, the guidance provides information and tools to counter Russian sanctions evasion. (Russia sanctions: sales of oil tankers to third countries - GOV.UK (www.gov.uk)) (NTE 2024/11: Russia sanctions – Sales of oil tankers to third countries - GOV.UK (www.gov.uk))

• UK Parliament debates Russian sanctions:  On May 20 and May 21, 2024, the House of Commons and House of Lords debated the efficacy and circumvention of Russian sanctions.  Among other things, the UK government stated that it expects the first OFSI monetary penalties in connection with Russia sanctions imposed since February 2022 to be imposed later this year. (Russia: Sanctions - Hansard - UK Parliament) (Ukraine - Hansard - UK Parliament)

2. Somalia Sanctions

• UK Government adds three entries to the UK sanctions list under the Somalia regime:  On May 22, 2024, the UK Government added Abdikadir Mohamed Abdikadir, Mohamed Mohamud Mire and Mohamed Omar Mohamed to the UK sanctions list under the Somalia regime, enacting a decision made by the United Nations the previous day. (Notice_Somalia_220524.pdf (publishing.service.gov.uk))

3. Other Sanctions

• UK Government updates export control licensing data:  On May 24, 2024, the UK Government added to its licensing data guidance certain 'Related data and statistics', including links to: export control licensing data reports, the strategic export controls annual report and UK defence and security exports statistics published by the UK Defence and Security Exports. (https://www.gov.uk/guidance/strategic-export-controls-licensing-data#related-data-and-statistics)
• UK Government updates list of companies approved to Open General Trade Control Licence (maritime anti-piracy):  On May 24, 2024, the UK Government updated the Open General Trade Control Licence (OGTCL) (maritime anti-piracy): registered companies list to add Open Ocean Services Ltd (OOS) and remove are Protection Vessels International Limited and Solace Global Maritime Limited.  The listed companies are registered and approved to use the OGTCL. (https://www.gov.uk/government/publications/open-general-trade-control-licence-maritime-anti-piracy-list-of-registered-companies)
• UK announce transition of export declarations from Customs Handling of Import and Export Freight (CHIEF) system to the (new) Customs Declaration Service (CDS):  On May 21, 2024, the Export Control Joint Unit (ECJU) issued a notice to exporters station that all export declarations are due to move from CHIEF to CDS by June 4, 2024.  From that date onwards, HMRC not be able to accept the single administrative document (SAD) form that is currently submitted on CHIEF and an electronic export declaration will need to be submitted on CDS instead.  (NTE 2024/12: Export declarations move from CHIEF to CDS from 4 June 2024 - GOV.UK (www.gov.uk))
• UK issues new regulations prohibiting designated persons from acting as directors of UK companies:  On May 16, 2024, the Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 came into force and on June 5, 2024, the Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2024 will come into force.  These regulations prohibit DPs from acting as directors of UK companies and grant a power to the Secretary of State to issue licences in relation to director disqualification sanctions.  (The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2024 (legislation.gov.uk)) (The Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 (legislation.gov.uk))