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On Tuesday 01 November 2022, the UK Government made the Russia (Sanctions) (EU Exit) (Amendment) (No. 16) Regulations 2022 (the "UK Regulations") which will ban the import and maritime transportation of Russian oil and prohibit the provision of services including finance, insurance and shipping relating to maritime transportation. A price cap exception to the services ban is also being created.
The UK Regulations will have effect in Jersey by means of the Sanctions and Asset Freezing (Implementation of External Sanctions) (Jersey) Order 2021, which automatically implements all amendments to the UK Russia (Sanctions) (EU Exit) Regulations 2019 in Jersey.
What is the Russian Oil Price Cap?
The UK and Price Cap Coalition (G7 + Australia) partners have agreed tough and comprehensive sanctions on Russia's most lucrative export: crude oil and refined oil products. The UK are collectively banning the import of Russian oil and oil products into markets, and further ban services including finance, insurance, and shipping from enabling the seaborne transport of Russian oil and oil products globally.
To enable oil to continue to flow in a tight market, a price cap exception to the services ban is being created. This will permit services to continue facilitating the transport of Russian oil and product by sea to and between third countries, if sold at or under an agreed price.
The aim of introducing a price cap, the level of which will be determined by coalition countries, is to reduce Russian oil revenues and Russia´s ability to fund its illegal war in Ukraine through inflated global oil prices, whilst enabling oil to continue to flow to the third countries that need it.
When is the Oil Price Cap coming into force?
The maritime services ban and its price cap exception for crude oil will
come into effect from 05 December 2022 in both Jersey and the UK, with the equivalent restrictions and exception for refined oil products coming into force from 05 February 2023.
The UK have published the UK Maritime Services Prohibition and Oil Price Cap Guidance which provides detailed guidance on the amendments made by the UK Regulations.
If you have any questions about this notice, please contact sanctions@gov.je.
