We are writing to inform you of the latest developments regarding the EU sanctions against Russia, which may affect your shipping activities. The EU adopted the 11th package of economic sanctions against Russia on June 23, 2023, to prevent their circumvention and further eroding Russia’s revenues.

The new sanctions introduce new prohibitions and restrictions on trade and transport involving Russia, as well as some exemptions and derogations for certain cases.

The key items that you should take note of are:

• The EU will not allow vessels to enter its ports or waterways if they are carrying or have carried out STS transfers of Russian crude oil or petroleum products or interfered with their AIS. This applies to all vessels, regardless of their flag. You must notify the EU Member State's competent authority where you seek access at least 48 hours in advance if you have done an STS transfer within the EU waters.


• The EU will restrict the sale, supply, transfer, or export of certain goods (dual-use goods) and technology that could contribute to Russia’s defence and security sector or the aviation or space industry to certain third countries that are considered to be at high risk of circumvention. You must also avoid transiting such goods via Russia if they have been exported from the EU to third countries.


• The EU will stop buying crude oil from Russia through the northern section of the Druzhba oil pipeline, which runs through Germany and Poland. However, oil from Kazakhstan or other third countries can still transit through Russia and be imported into the EU via the same pipeline.


• The EU will extend the exemption for Japan to buy oil and gas from the Sakhalin-2 project in Russia until March 31, 2024. The EU will also allow some derogations for maintaining and operating the CPC pipeline that carries oil from Kazakhstan and other countries to the Black Sea through Russia.

Please be advised that these sanctions are subject to change and may be updated by the EU at any time. You should conduct thorough and complete due diligence on the parties, cargoes, and trade (charterparties) involved before engaging in any trade to, through or from Russia. You should also be aware that P&I cover is not available for trade that breaches applicable sanctions.

For more information, please refer to the circular issued by IG P&I Club through all P & I Clubs [attached American Club Circular No. 09/23], which provides a detailed summary of the new sanctions.

You may also contact your P&I Club directly if you have any questions or concerns.