The UK has published guidance to support businesses in their Russia sanctions compliance procedures for the sale and brokering of oil tankers to third countries, outlining:
- Reg 29 of the Russia Sanctions Regulations prohibits the provision of brokering services in relation to an arrangement whose object or effect is making certain vessels listed in Part 7 of Sch 2A available in a third country for delivery to Russia;
- appropriate due diligence might include obtaining the contact details, source of funds and copies of identification of the buyer’s beneficial owner – this information could be verified against third party databases, media and market intelligence to ensure that they are the true end-user or ultimate beneficial owner;
- ship brokers are advised to implement a system of ‘red flags’ into their due diligence processes; and
- the guidance provides a list of 19 possible red flags, including: (a) the transaction concerns vessel that is 15+ years old; (b) the purchase price is materially above the market price; (c) the potential buyer is involved in the sale of restricted goods to higher-risk destinations; and (d) the route of shipment is inconsistent with normal trade patterns.