On October 21, 2024, an international coalition consisting of the G7 countries—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States[1]—as well as the European Union, Australia, and New Zealand (the “Price Cap Coalition”) issued an updated advisory containing new recommendations and best practices for the maritime oil industry and related sectors[2] relating to promoting responsible practices in the industry, disrupting sanctioned trade, and enhancing compliance with the oil price cap on Russian oil and petroleum products.  We previously wrote about the oil price cap here.

The updated advisory adds four new recommendations and modifies several recommendations issued in October 2023.[3]  Provided in the bullet points below are brief summaries of the new recommendations.

  • Recommendation 8 aims to ensure that maritime vessels meet international maritime safety and environmental obligations.[4]  Specifically, Recommendation 8 encourages flag states—countries where merchant ships are registered—to uphold their obligations to enforce relevant international agreements.[5]  Recommendation 8 also encourages countries with territory bordering the sea to monitor ship-to-ship operations in their territorial waters and urges industry stakeholders to report potentially illicit or unsafe maritime oil trade to relevant authorities.
  • Recommendation 9 encourages industry stakeholders to conduct additional due diligence for transactions involving the sale or brokering of aging oil tankers, which, according to the coalition, are more likely to involve evasive or illicit purchase structures designed to circumvent the oil price cap.[6]
  • Recommendation 10 prompts stakeholders to implement more robust sanctions screening measures to reduce their exposure to sanctioned persons and vessels.[7]  In particular, this recommendation indicates that ports should prohibit sanctioned persons and vessels from entering ports, conducting ship-to-ship transfers in ports, and buying or selling tankers in ports.
  • Recommendation 11 encourages stakeholders to develop training programs for their partners and employees to raise awareness regarding the risks of dealing with sanctioned persons and vessels.[8]  This recommendation focuses on the “shadow fleet,” typically older vessels used beyond their traditional lifespans by countries or persons that raise increased sanctions risks.  According to the updated guidance, improper vessel registration and sub-standard regulatory compliance increase the likelihood that shadow fleet vessels will cause marine casualties and environmental damage.  This recommendation also encourages stakeholders to focus on identifying shadow fleet “red flags” and to prioritize open communication with other stakeholders to combat deceptive practices.

In addition to new recommendations, as noted above, the advisory modifies several of the original recommendations published last year.[9]  For example, Recommendation 4 now encourages stakeholders to conduct ship-to-ship transfers in accordance with the International Maritime Organization December 2023 resolution on ship-to-ship activities and the shadow fleet.  Also, Recommendation 5 now recommends that stakeholders involved in the Russian oil trade require an itemized breakdown of all known costs at the start of the transaction because, as of early 2024, many coalition authorities now require such information.  In addition, Recommendation 6 includes additional shadow-fleet red flags that should be considered during due diligence.  Finally, Recommendation 7 now references the coalition’s February 2024 Compliance and Enforcement Alert, which lists concerning behaviors potentially indicating malign activity that stakeholders should report to authorities.

On the same day the Price Cap Coalition issued the updated advisory, the United States endorsed a United Kingdom “Call to Action,” a multi-country strategy for combatting risks to the global maritime industry posed by Russia’s shadow fleet.[10]


[1] The United States implements the Price Cap Coalition’s price cap through a directive issued by the Treasury Department pursuant to Executive Order (EO) 14071.  See Determination Pursuant to Sections 1(a)(ii), 1(b), and 5 of Executive Order 14071: Price Cap on Crude Oil of Russian Federation Origin, U.S. Department of the Treasury (Dec. 5, 2022), https://ofac.treasury.gov/media/929776/download?inline; OFAC Preliminary Guidance on Implementation of the Price Cap Policy for Petroleum Products of Russian Federation Origin, U.S. Department of the Treasury (Dec. 30, 2022), https://ofac.treasury.gov/media/930191/download?inline.

[2] See Press Release: Price Cap Coalition Issues Updated Advisory for Maritime Industry, U.S. Department of the Treasury (Oct. 21, 2024), https://home.treasury.gov/news/press-releases/jy2659.

[3] See Updated Price Cap Coalition Advisory for the Maritime Oil Industry and Related Sectors, U.S. Department of the Treasury (Oct. 21, 2024), https://ofac.treasury.gov/media/933506/download?inline (hereinafter “Updated Advisory”).

[4] See Updated Advisory, Recommendation 8: Ensure Vessels Meet International Maritime Safety and Environmental Obligations.

[5] Including the International Convention for the Safety of Life at Sea (SOLAS), International Convention for the Prevention of Pollution from Ships (MARPOL), International Convention of Standards of Training, Certification and Watchkeeping for Seafarers (STCW), and International Convention on Civil Liability for Oil Pollution Damage (CLC).

[6] See Updated Advisory, Recommendation 9: Monitor Tanker Sales.

[7] See Updated Advisory, Recommendation 10: Avoid Interactions with Sanctioned Parties.

[8] See Updated Advisory, Recommendation 11: Raise the Level of Awareness and Enhance Market Transparency.

[9] See Updated Advisory.

[10] See Press Release: Price Cap Coalition Issues Updated Advisory for Maritime Industry, U.S. Department of the Treasury (Oct. 21, 2024), https://home.treasury.gov/news/press-releases/jy2659; The ‘Shadow Fleet’: A Call to Action, U.K. Foreign, Commonwealth & Development Office (July 19, 2024), https://assets.publishing.service.gov.uk/media/67112514b22a14f7ee18ed98/EPC_-_Call_to_Action_-_Shadow_Fleet_17.10_24.pdf.