22nd June 2024 – 28th June 2024
Contents
LOCAL NEWS
No news reported.
INTERNATIONAL NEWS
1. EU adopts 14th package of sanctions against Russia
Following last week’s EU Agreement (on Thursday, 20th June 2024) and our Union’s report on this issue, on the 24th June 2024, the EU Council adopted the 14th package of sanctions against Russia, with Council Regulation 2024/1745, which amends Sanctions Regulation 833/2014. The package entered into force on the 25th June 2024.
One of the most important developments is that new Article 3s establishes new Annex XLII, which includes vessels subjects to additional restrictions. The criteria for inclusion in Annex XLII include vessels that “transport crude oil or petroleum products, as listed in Annex XXV, that originate in Russia or are exported from Russia while practicing irregular and high-risk shipping practices as set out in the ΙΜΟ General Assembly resolution A.1192(33)” (Article 3s para 2).
Other reasons for listing include the transport of goods and technology used in the defence and security sector for use in Russia or for Russia’s warfare in Ukraine or vessels which are operated in such a way as to contribute or support actions or policies for the exploitation, development or expansion of the energy sector in Russia.
Vessels listed in Annex XLII will not be able to receive services including i.a. access to EU ports, financial assistance and insurance, crewing and flag registration, and technical assistance. Providing bunkering and ship supply services is also prohibited. The full list of prohibited services can be found in Article 3s para 1. Pilotage services remain exempted for reasons of maritime safety.
Ship-to-ship transfer or any other transfer of cargo involving listed vessels is also prohibited.
Additionally, the package imposes restrictions on transshipment of Russian LNG in the territory of the Union.
New article 3r imposes a prohibition “to provide reloading services in the territory of the Union for the purposes of transshipment operations of liquified natural gas falling under CN code 2711 11 00, originating in Russia or exported from Russia”. This prohibition extends to brokering, technical and financial assistance.
The prohibitions will start applying on 26 March 2025 for the execution of contracts concluded before 25 June 2024.
Exemptions can be granted by national competent authorities provided that the reloading operation is deemed necessary “for its transport to a Member State and such Member State has confirmed that the transshipment is used to ensure the energy supply in that Member State”.
Member States may issue rules and guidance (including on due diligence) for the purpose of assisting with implementation. Such guidance should be notified to the Commission by 26 December 2024.
According to article 3r para 9, the restrictions on reloading do not apply to LNG bunkering for vessels.
The Questions and Answers on the 14th package of restrictive measures against Russia, which have been published by the European Commission clarify that EU sanctions are not extraterritorial, however, it is important that the foreign subsidiaries of EU companies do not engage in activities that go against the purpose of the EU sanctions, weakening their impact. Therefore, EU Companies are required to ensure that their subsidiaries are particularly careful when it comes to trade in specific types of sensitive goods, by using the “no Russia” clause in their contracts, and by conducting appropriate due diligence.
Furthermore, the Q & A state that the new requirements focus on Common High Priority (CHP) items. Union operators selling, supplying, transferring or exporting such items to third countries, other than partner countries, will be required to have due diligence mechanisms capable of (i) identifying and assessing the risks of re-exportation to Russia and (ii) mitigating such risks.
The new package includes restrictive measures on additional 116 individuals and entities responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.
Several new “entities”, including companies, banks, agencies and other organizations, were added to the EU’s list, including some in China, Turkey and the United Arab Emirates.
Our Union will examine in close cooperation with the Cyprus Authorities and ECSA, the effect and consequences of the adoption of the 14th Package on European Shipping and its implementation on a National level.
Related Publications:
- SDM 27/06 - SIN 2/2024: New European Union restrictive measures in view of the gravity of the situation in Ukraine (14th package of restrictive measures)
- COUNCIL REGULATION (EU) 2024/1745
- Consilium Europa Press Release 24/06 - Comprehensive EU’s 14th package of sanctions
- SDM Circular No. 17/2024 - European Entry-Exit System (EES) and European Travel Information and Authorisation System (ETIAS): Obligations for Carriers
- EC Europa 24/06 - Questions and Answers on the 14th package
- Reuters 24/06 - EU adopts new sanctions against Russia, including LNG
- Associated Press News 24/06 - EU targets Russia’s LNG ghost fleet with sanctions
- Consilium/press releases 28/06 - EU lists two individuals and four entities for circumventing EU sanctions
2. ITF Says Flag States Must Instruct Ships to Divert from Red Sea for Safety
Marking the Day of the Seafarer, the International Transport Workers’ Federation (ITF) is urging the international community to reflect on the invaluable contribution of seafarers to the global economy. In the face of the latest escalation from the Houthis attacking ships in the Red Sea region, the ITF is saying that flag states “which are responsible for assuring a safe working environment for seafarers on their vessels, must instruct companies to divert their ships”.
Related Articles:
- ITF Seafarers 24/06 - The ITF demands immediate action to ensure the safety of seafarers in the Red Sea
- Marine Traffic 26/06 - ITF Demands Protection for Seafarers After Deadly Houthi Attacks
- Defence Web 27/06 - ITF wants immediate action taken to safeguard seafarers in Red Sea region
3. US TREASURY REPORT
The US Treasury Report for all actions reported is hereby attached.
Related Article:
Attachment 1: US Treasury Report for week 22/06/2024 – 28/06/2024
4. PIRACY REPORT
The Piracy Report for all actions reported is hereby attached.
Related Article:
Attachment 2: Worldwide Threat to Shipping (WTS) Report, for the period between 29/05/2024 – 26/06/2024
Nothing important to report from Local News, the House of Representatives and ILO.