The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) recently released preliminary guidance on the implementation of a price cap policy on Russian crude oil and petroleum products.  This policy has major implications for maritime service providers and maritime supply chains.

The price cap policy will be implemented by the United States, together with the G7 and the EU.  The policy has two components: (1) a ban on services related to the maritime transportation of Russian origin crude oil (effective December 5, 2022) and petroleum products (effective February 5, 2022) (collectively referred to as “seaborne Russian oil”), and (2) an exception for services related to shipments of seaborne Russian oil purchased at or below a price cap.  The U.S. ban on the importation of Russian crude oil, petroleum, and petroleum fuels, oils and products of their distillation into the United States will remain in place.

The level of the price cap has not yet been set.  It will be established by cooperating countries via a consultative process.  OFAC anticipates publishing additional, detailed guidance regarding the price cap plan closer to the implementation dates.
Continue Reading OFAC Releases Preliminary Guidance on Implementation of the Russian Oil Price Cap

The United States has requested dispute settlement consultations with Mexico under Chapter 31 of the United States-Canada-Mexico Agreement (“USMCA”) concerning a range of energy policies adopted by the Government of Mexico that the United States believes discriminate against U.S. interests in violation of the USMCA.  According to a press release issued by the Office of the U.S. Trade Representative Katherine Tai:

Mexico’s policies have largely cut off U.S. and other investment in the country’s clean energy infrastructure, including significant steps to roll back reforms Mexico previously made to meet its climate goals under the Paris Agreement.  Mexico’s policy changes threaten to push private sector innovation out of the Mexican energy market.  To reach our shared regional economic and development goals and climate goals, current and future supply chains need clean, reliable, and affordable energy.

Canadian Trade Minister Mary Ng has indicated that Canada has joined the United States in challenging these actions through the same dispute settlement mechanism.  This is the first time that the United States and Canada have both pursued USMCA dispute settlement consultations with Mexico on policies of mutual concern.Continue Reading United States Seeks USMCA Dispute Settlement Consultations With Mexico Over Range of Energy Policies