Reed Smith In-depth

Shortly before the 5 February 2023 cut-off date for the provision of maritime services related to the transportation of Russian petroleum products, the UK, EU and U.S. each published the relevant price cap for petroleum products falling under HS/CN Code 2710 that are of Russian origin or consigned or exported from Russia to non-G7 countries (Restricted Petroleum Products).

The UK, EU and U.S. also updated their guidance on the scope and practical implementation of the price cap restrictions relating to both HS/CN Code 2709 (i.e., crude oil) and 2710 products (i.e., petroleum products) (together, the Restricted Products).

This client alert is part of a series, with previous perspectives on:

Price cap on Restricted Petroleum Products

The relevant UK, EU and U.S. legislation on the price cap measures applicable to Restricted Petroleum Products are as follows:

The maritime transportation and services restrictions do not apply in relation to Restricted Petroleum Products if the “unit price” (being the price per barrel or, under the UK guidance, per tonne) of such products is at or below the Premium to Crude or Discount to Crude price cap (depending on their HS/CN code).

The table below is indicative of the HS/CN codes that fall under each category. That said, each HS/CN code must be checked on a case by case basis against the relevant EU, UK and U.S. legislation, in order to ensure compliance with all applicable sanctions regimes. This is a notable instance where the U.S. Harmonized Tariff Schedule is different from that of the EU and the UK.

Client Alert Table