The last eighteen months has seen numerous new sanctions regimes introduced by the EU, UN and the U.S. Amongst the shipping community, there has naturally been a heavy focus on Iranian and Libyan sanctions. It is important to understand, however, that there are now a whole host of countries facing sanctions from the EU, UN and U.S.
The foundations of EU sanctions regimes are the lists of “designated persons”. Those subject to the EU Regulations cannot make funds or economic resources directly or indirectly available to or the for the benefit of designated persons, who are also subject to an asset freeze. The U.S. has also frequently updated its list of Specially Designated Nationals (“SDNs”). "U.S. persons" and non-U.S. financial institutions should not have any dealings with SDNs. "U.S. persons" is defined as U.S. citizens, permanent resident aliens, persons physically in the U.S., U.S. organised entities and foreign branches. Of course, even if not a "U.S. person", many entities take the view that they should not in any event have business dealings with SDNs.
The attached table identifies the various sanctions regimes and includes links to the relevant list of “designated persons” for that country.
It is of course the fact that the sanctions often go beyond the targeting of specific entities and individuals to focus also on particular sectors and activities.
Our thanks to Mark Church of law firm Reed Smith for contributing to this advisory. We recommend their website for additional papers and advice on sanctions and their impact on ship operators.