Sanctions against Venezuela impact shipping
Further to the Club’s Member Alert of 29 January concerning US sanctions against Venezuela the Club wish to highlight the following aspects that may be relevant for members being involved in transactions relating to the Venezuelan oil sector or trading with Venezuela generally
- The US sanctions against the oil sector apply to US persons so members should avoid there are any US persons in the transaction chain and also avoid US dollar payments in relation to the trade or transaction.
- It is not unlikely that vessels having called a port in Venezuela will be subject to scrutiny at a subsequent US port in particular if a pervious trade has involved any entity sanctioned by the US.
- The Club is advised that foreign shipowners often remit funds on account to Venezuelan ship agents in order to pay port charges and vessel disbursements. Such remittances are often made in US dollar and as such move through the US banking system. It appears that a portion of such advances paid by foreign shipowners may be used by local Venezuelan shipping agents to purchase Petros, which is a designated currency by the US, in order to make the required payments in that digital currency. As a result, US banks would be engaged in a transaction “related to” Petros.
The shipowner may then be in breach of US law for “causing a violation” of the same according to Executive Order 13827. Therefore members should avoid using US dollar as currency in relation to port calls in Venezuela.
For more detailed information about the contents of the US sanctions please see our Member Alert of 29 January.
Member Alert is published by The Swedish Club as a service to members. While the information is believed correct, the Club cannot assume responsibility for completeness or accuracy.