We refer to our Newsletter 6/22 Newsletter 06-22 where we refer to the entry in force of the Price Cap scheme regulating the transport on tanker vessels of Russian crude oil and petroleum products.
The P&I cover continues to be subject to various compliances from the Members, mainly referring to providing appropriate attestations that they have not violated the scheme indicated by the Price Cap Coalition (G7, Australia and the EU).
We are now informing all our readers that a new scheme on Price Cap rules has been published and it is designated to support the implementation of the Price Cap and disrupt any attempt of circumvention to use opaque shipping costs to hide the purchase of oil or petroleum products above the cap.
The changes adopted by the Price Cap Coalition will come into effect on 19th February 2024 (UK and US) and for cargoes loaded on or after 20th February 2024 (EU).
The two key changes are:
- 1. A requirement for attestations to be provided on a ‘per-voyage’ basis (the attestations provided by shipowners to P&I Clubs must be submitted within 30 days of loading). No Cover will be available unless an attestation is provided within this timescale. Annual attestation will no longer be acceptable.
- 2. Itemised price information for ancillary costs. Also, for this compliance, Members must ensure that they have a right to ancillary costs information within 30 days in order to comply with the obligation to their Club and avoid potentially jeopardising their P&I cover.
We submit, for your prompt guidance, the Circular issued by your P&I Club of reference, including as well the Price Cap Attestation to be submitted directly to your P&I Club.
We then remind all our readers that trade involving Russia continues to be subject to significant legal restrictions and all operators involved in this trade are encouraged to conduct thorough due diligence on the parties, cargoes, and trade before taking any contract/voyage to, through, or from Russia.