The European Commission (EC) has issued a notice providing an exception to its initial total ban on imports into the European Union (EU) of Russian oil mixed with oil of other origin.

The notice specifically advises financial institutions issuing letters of credit (L/Cs) or opening credit lines to exercise due diligence so that they do not engage in transactions involving Russian crude oil imported into the EU.

Exception introduced

In June, the EU imposed a restriction on Russian oil imports banning all shipments of Russian oil mixed with oil of other origin from entering member states.

The amendment introduces an exception to this rule. If the exact share of the product which does not originate in Russia can be clearly demonstrated to the national authorities of a member state it may be partially exempt from the rule.

In such a case, the exact portion of oil not originating in Russia can be allowed into the EU.

Compliance responsibilities

Although importers are those primarily responsible for complying with the oil related sanctions, the amendment says all actors involved in oil imports into the EU are advised to exercise due diligence.

This includes financial institutions issuing L/Cs or opening credit lines as well as carriers, insurers and other providers of trade services.

The EC notice, Imports of Russian crude oil or petroleum products into the Union, can be found here.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.