OFAC clarifies on sanctions against COSCO shipping entities

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Wednesday (25 September) placed COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co. and other firms under sanctions over the transportation of Iranian oil.

It has clarified the blocking sanctions apply only to both listed COSCO entities and any entities in which they own, individually or in the aggregate, a 50% or greater interest.

“Sanctions do not apply to these entities’ ultimate parent, COSCO Shipping Corporation Ltd. (COSCO),” it stated.

“Similarly, sanctions do not apply to COSCO’s other subsidiaries or affiliates (e.g., COSCO Shipping Holdings), provided that such entities are not owned 50% or more in the aggregate by one or more blocked persons.

“U.S. persons, therefore, are not prohibited from dealing with COSCO, its non-blocked subsidiaries, or non-blocked affiliates to the extent the proposed dealings do not involve any blocked person, or any other activities prohibited pursuant to any OFAC sanctions authorities.

“Similarly, non-U.S. persons do not face sanctions risk for engaging in transactions with COSCO, its non-blocked subsidiaries, or non-blocked affiliates.”

OFAC, meanwhile, added the following firms under its sanctions list over the transportation of Iranian oil:

• CHINA CONCORD PETROLEUM CO., LIMITED (f.k.a. FAITHFUL LINKER), 17th Floor, Siu Ying Commercial Building, 151-155 Queen's Road Central, Hong Kong
• KUNLUN HOLDING COMPANY LTD., Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola VG1110, Virgin Islands, British
• KUNLUN SHIPPING COMPANY LIMITED, 17th Floor, Siu Ying Commercial Building, 151-155 Queen's Road Central, Hong Kong; Building 5, 815 Dongdaming Lu, Hongkou Qu, Shanghai 200082, China
• PEGASUS 88 LIMITED, 17th Floor, Siu Ying Commercial Building, 151-155 Queen's Road Central, Hong Kong

Published: 27 September, 2019