Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to ensure UK insurers and other maritime service providers verify compliance with the oil price cap for shipping contracts involving vessels potentially linked to Russia’s shadow fleet.

HM Treasury’s Office of Financial Sanctions Implementation (OFSI) supports industry in complying with the Oil Price Cap. On 16 February 2024, OFSI issued updated industry guidance (UK Maritime Services Ban and Oil Price Cap Industry Guidance). OFSI also co-authored a joint G7+ Coalition Advisory for the Maritime Oil Industry and Related Sectors, issued 12 October 2023, and a Price Cap Coalition Oil Price Cap Compliance and Enforcement Alert, issued 1 February 2024. Alongside this, OFSI has also published updated Financial Sanctions Guidance for Maritime Shipping, issued 5 March 2024.

From 19 February 2024, the price cap attestation model was updated to require attestations to be shared on a per-voyage basis, as part of a relevant transaction. As well as per-voyage attestations, the new model requires itemised ancillary costs to be recorded and provided to contractual counterparties upon request. These measures were designed to make it easier for good-faith actors to reliably comply with the price cap, through providing greater transparency for UK service providers engaging in the trade and transport of Russian oil.

OFSI takes a proactive enforcement approach and is currently undertaking a number of investigations into suspected breaches of the Oil Price Cap, using powers under SAMLA to request information and working closely with our international partners in the G7+ Coalition.

The UK has also taken action directly targeting shadow fleet vessels and entities that seek to undermine UK sanctions and facilitate the trade and transportation of Russian oil and oil products. Since Russia’s illegal invasion of Ukraine, the Foreign, Commonwealth and Development Office (FCDO) has sanctioned 25 vessels and 18 entities and individuals linked to Russia’s shadow fleet, under its ship specification and designation powers.