Centre of Excellence: Sanctions & Security

Sanctions continue to play an increasingly important role in international trade and maritime operations. Governments and supranational bodies regularly impose sanctions and trade restrictions to advance foreign policy, national security and geopolitical objectives. As sanctions regimes evolve, they can have significant implications for shipowners, operators, charterers, cargo interests and insurers alike.

Sanctions may affect a wide range of activities, including vessel operations, cargo movements, financial transactions, insurance arrangements and dealings with particular countries, entities or individuals. Breaches of applicable sanctions can give rise to serious legal, commercial and regulatory consequences and may also affect the availability of Club cover.

The sanctions landscape is dynamic and can differ between jurisdictions. Measures imposed by the United States, United Kingdom, European Union, United Nations and other authorities are not always aligned and may change at short notice. As a result, activities that may be permissible under one sanctions regime may nevertheless create risks under another.

Trade that is lawful under one sanctions regime may nevertheless give rise to insurance implications where sanctions restrictions affect the Club, availability of reinsurance or the recovery of amounts from the International Group Pool. Members should therefore consider not only the legality of a proposed transaction, but also its potential impact on the availability of insurance cover and claims recovery.

The Club's Sanctions & Security Centre of Excellence monitors developments affecting the maritime sector and provides guidance to Members on sanctions-related issues and their potential impact on Club cover.

The country summaries below provide high-level information on jurisdictions that frequently generate sanctions-related enquiries from Members. They are not intended to be an exhaustive list of all sanctions risks. Sanctions exposures may also arise in connection with specific counterparties, vessels, cargoes, financial institutions, sectors or activities.

The information provided on these pages is intended as a general overview only and does not constitute legal advice. Members are reminded that cover is not available for any trade that breaches applicable sanctions or which may expose the Club to sanctions. Appropriate due diligence should be undertaken in relation to counterparties, cargoes, vessels, financial institutions and other parties involved in a transaction, and records of such due diligence should be maintained.

Given the potential application of multiple sanctions regimes and that regulations change frequently, Members should carefully assess the legal, compliance and insurance implications of any proposed activity and seek specific up to date advice where appropriate.