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OFAC Issues Guidance on Russian Petroleum Products Price Cap

The Office of Foreign Assets Control last week issued preliminary guidance on the implementation of the price cap for Russian-origin petroleum products, outlining how it will apply restrictions to articles defined by Harmonized Tariff Schedule of the U.S. heading 2710. The price cap will work in a similar manner to the crude oil cap, where participating countries will ban "a broad range" of maritime transport services if they support shipping Russian petroleum products over a predetermined cap.

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The petroleum products determination will cover the same service categories as the crude oil determination and will take effect at 12:01 a.m. EST, Feb. 5., OFAC said. As in the crude oil determination, OFAC said it will issue more determinations to establish the caps and will amend general licenses 56 and 57 to extend authorizations for petroleum products (see 2211230047). OFAC said it also "anticipates" exempting Russian petroleum products loaded onto a vessel before 12:01 a.m. EST Feb. 5 and unloaded before 12:01 a.m. EST April 1 from the restrictions. OFAC provided more information on that exemption in Frequently Asked Question 1109.