EU Advises LC Issuers, Others to Conform to Russian Oil Import Prohibitions

On 3 August 2022, the European Union issued notice to operators in which it granted “specific and temporary derogations and exceptions” for some EU member states and certain entities to prohibitions stipulated in EU Council Regulations regarding the import of Russian crude oil or petroleum products into the EU.

In Notice 2022/C 296/05, published in the Official Journal of the European Union, it also cautioned:

“Although importers are those primarily responsible for complying with the oil related sanctions, all actors involved in oil imports into the EU – including carriers, insurers and financial institutions opening credit lines or issuing letters of credit – are advised to exercise due diligence so that they do not engage in carrying or insuring the transport of Russian crude oil for import into the EU. This results from the prohibition to provide technical assistance, financing or financial assistance in relation to the purchase, import or transfer of crude oil and petroleum products” contained in provisions of EU Council Regulation 833/2014.