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Rajah & Tann: “Black ships” of the Industry – US Sanctions and what they all mean

US sanctions have given rise to the Dark Web of Shipping and Covid-19 is likely to force shipowners to take unprecedented risks and supply to ‘black ships’, says Partner.
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Max Lim, a Partner of legal firm Rajah & Tann Singapore LLP, on Monday (7 September) provided marine fuel industry readers of Manifold Times a briefing on US sanctions of vessels, its side-effects in creating a black market, and future implications for the bunkering industry as these sanctions are expected to grow: 

“Black ships” of the Industry - US Sanctions and what they all mean

In recent times, the US has paid very close attention to the shipping industry, making no secret of its intention to intensify sanction measures.

At last check, there are 389 vessels on the American “blacklist”.

This “blacklist” is none other than the notorious SDN List (Specially Designated Nationals and Blocked Persons List) maintained by the US OFAC (Office of Foreign Assets Control).

Iran, the perennial target, tops the list with 202 vessels.

47 vessels have been marked for links to Venezuela (a relatively recent entrant).

102 are connected to North Korea. The remaining are spread amongst Cuba, Libya, Syria and Ukraine.

In terms of vessel-type, besides the obvious oil tankers, they comprise bulkers and containerships.

In my view, the vessel-count on this “blacklist” is expected to grow for 2 reasons.

With strengthened surveillance and intelligence, more vessels with ties to these sanctioned nations will be identified,

But more importantly, US sanctions have given rise to a shadow economy - the Dark Web of Shipping. The adage that with great risk comes great reward rings true. But not just that. The ongoing pandemic crisis is also likely to force shipowners and the like to walk down the road less travelled, to take up opportunities that very few would.

At the same time, these sanctioned nations have huddled together - if anything, out of necessity, having been forcibly excluded from the international mainstream. A good example of that symbiosis perhaps would be Iran and Venezuela. At opposite sides of the Atlantic, but the former desperate to export, and the latter in a desperate need of gasoline.

But what does this all mean?

For bunker players and the maritime sector as a whole here and elsewhere, it means having to tread very carefully.

Companies that supply to these “black ships” or deal with blacklisted entities run the clear risk of themselves being placed on the SDN “blacklist”.

A company that finds itself on the SDN list will undoubtedly face difficulty doing business as banks and other companies are likely to steer clear, for fear of being “blacklisted” themselves. Such is the cascading effect of US sanctions, which is at the heart of its efficacy.

At a practical level, funds tainted by association with a sanctioned entity (or even suspected of this), may end up being blocked or quarantined in the banking system for an extended period of time. Apart from the cumbersome process of having the funds released, it may also have an adverse impact on cash-flow.

The “long-arm” of US sanctions has a far-reaching effect, far beyond US soil.. The US however has seen fit to lay down the rules - its rules. Those who abide by the rules, may stay and continue playing. But for those who don’t, they are confined to the lowest division, with no chance of promotion.


Photo credit: Pixabay
Published: 9 September, 2020

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Hong Kong-based Joint Vision Shipping plans windup of Times Shipping

Application for the winding up of Times Shipping scheduled to be heard at the High Court of the Republic of Singapore at 10.00 a.m. on 6 October 2023.
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September 26, 2023

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Hong Kong-based Joint Vision Shipping Co., Limited (Hong Kong SAR Registration No. 3103011) is planning to windup Times Shipping Pte Ltd (Singapore UEN No. 202002249Z) at the High Court of the Republic of Singapore, according to a Monday (25 September) post on the Government Gazette.

Joint Vision Shipping first filed the application for the winding up of Times Shipping to the General Division of the High Court on 12 September 2023.

Following, the application for the winding up of Times Shipping has been scheduled to be heard in the General Division of the High Court of the Republic of Singapore at 10.00 a.m. on 6 October 2023.

Any creditor or contributory of the company desiring to support or oppose the making of an order of the winding up application may appear at the time of the hearing by himself or his counsel for that purpose; and a copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the undersigned on payment of the regulated charge for the same.

The Claimant’s address is 6/F Manulife Place, 348 Kwun Tong Road, Kowloon, Hong Kong.

The Claimant’s solicitors are Morgan Lewis Stamford LLC of 10 Collyer Quay #27-00 Ocean Financial Centre, Singapore 049315.

Photo credit: Manifold Times
Published: 26 September, 2023

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Creditors meeting for Anjasmoro Maritime and affiliated sister firms to be held in Oct

Meeting will be held for the purposes of receiving a statement of the company’s affairs together with a list of creditors and the estimated amounts of their claims, amongst others.
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September 26, 2023

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A creditors meeting for Anjasmoro Maritime and ten other sister maritime firms has been scheduled to be held by way of electronic means on 3 October 2023 at 1.00pm (SGT), according to the Government Gazette on Friday (22 September).

Information for the event is related to:

  • Anjasmoro Maritime Pte. Ltd. (Company Registration No. 200403118R) – 1pm (SGT)
  • Dewayani Maritime Pte. Ltd. (Company Registration No. 200105886G) – 1.30pm (SGT)
  • Fatmarini Maritime Pte. Ltd. (Company Registration No. 200207063H) – 2pm (SGT)
  • Gagarmayang Maritime Pte. Ltd. (Company Registration No. 200414648C) – 2.30pm (SGT)
  • Gandari Maritime Pte. Ltd. (Company Registration No. 200105809W) – 3pm (SGT)
  • Gandini Maritime Pte. Ltd. (Company Registration No. 200105885R) – 3.30pm (SGT)
  • Indradi Maritime Pte. Ltd. (Company Registration No. 200106034C) – 4pm (SGT)
  • Pramoni Maritime Pte. Ltd. (Company Registration No. 200807407R) – 4.30pm (SGT)
  • Tirtasari Maritime Pte. Ltd. (Company Registration No. 200107622K) – 5pm (SGT)
  • Wulansari Maritime Pte. Ltd. (Company Registration No. 200102335K) – 5.30pm (SGT)
  • Frabandari Maritime Pte. Ltd. (Company Registration No. 200207056H) – 6pm (SGT)

The creditors meeting will be held for the purposes of:

  1. receiving a statement of the company’s affairs together with a list of creditors and the estimated amounts of their claims;
  2. appointing liquidator(s);
  3. appointing a committee of inspection of not more than 5 members, if thought fit; and
  4. any other business.

Photo credit: Jo_Johnston from Pixabay
Published: 26 September, 2023

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Former CEO of Singapore-listed New Silkroutes Group amongst three others facing 31 charges at court

Dr Goh Jin Hian was the ex-Director of former Singapore bunker supplier and bunker craft operator Inter-Pacific Petroleum; he faced a USD 156 million civil trial at the Singapore High Court in April 2023.
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September 21, 2023

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Former Chief Executive Officer of Singapore-listed New Silkroutes Group Limited (NSG), Dr Goh Jin Hian, former Chief Corporate Officer, Oo Cheong Kwan Kelvyn, and former Finance Director, Teo Thiam Chuan William, were charged in court on Wednesday (20 September) with false trading offences under the Securities and Futures Act (SFA).

A fourth individual, Huang Yiwen, the sole director of GTC Group Pte Ltd (a commercial market maker engaged by NSG during the material time), was also charged with similar offences.

The four men were each charged with 31 counts of Section 197(1)(b) of the SFA read with Section 109 of the Penal Code for engaging in a conspiracy to create a misleading appearance with respect to the price of NSG securities.

They allegedly placed orders and executed trades in NSG securities for a purpose of pushing up the price of NSG securities on 31 trading days between 26 February 2018 and 27 August 2018. The alleged price manipulative orders and trades include share buy-backs conducted through NSG’s corporate trading account.

Dr Goh faces a further eight counts of Section 197(1)(b) of the SFA for allegedly placing orders and executing trades in NSG securities through his personal trading account for a purpose of pushing up the price of NSG securities on eight trading days between 31 August 2018 and 4 December 2018.

The charges above arose from a joint investigation carried out by the Commercial Affairs Department of the Singapore Police Force and the Monetary Authority of Singapore which started in September 2020.

If convicted of an offence under Section 197 of the SFA, offenders may be liable to an imprisonment term not exceeding seven years, or a fine not exceeding $250,000, or both.

Inter-Pacific Petroleum

Dr Goh, who was the ex-Director of former Singapore bunker supplier and bunker craft operator Inter-Pacific Petroleum (IPP), in April 2023 faced a USD 156 million civil trial initiated by IPP liquidator Deloitte & Touche over alleged breach of his director’s duties for IPP.

The Singapore branch of Maybank and Societe Generale (SocGen), both IPP’s largest creditors, are respectively looking to recover from exposure of an estimated USD 88.3 million and USD 81.3 million.

Reportedly, Dr Goh has said it was not the responsibility of the director to authenticate documents from management and he disputes against the banks’ own due diligence and credit risk assessments.

International Energy Group 

NSG in late March 2019 announced subsidiary New Silkroutes Capital signing a share sale and purchase agreement with Hong Kong-based TK Energy Limited for the disposal of the entire shareholding interests in International Energy Group Pte. Ltd. (IEG) for US $10 million in cash.

Singapore-headquartered IEG, which trades mainly gas oil and fuel oil, sells its products to international counterparties including oil majors and national oil companies.

In January 2021, stakeholders of IEG decided the firm can no longer continue business due to its liabilities and proceeded to summon a creditors’ meeting.

A meeting to distribute intended dividend to IEG creditors was later held in March 2023.

A timeline organised list of events preceding the current development of Inter-Pacific Petroleum has been recorded by Manifold Times below:

Related: Singapore: Civil trial between Inter-Pacific Petroleum and Dr Goh Jin Hian begins
Related: Former Singapore Director of Inter-Pacific Petroleum sued for USD 156 million
Related: Inter-Pacific Petroleum creditors authorised to fund lawsuit against former Director
Related: New Silkroutes under investigation over possible breach of Securities and Futures Act
Related: Judicial Managers considering to take former Singapore Director of Inter-Pacific Petroleum to court
Related: Singapore: Inter-Pacific Group receives winding up order from High Court
Related: Singapore: Inter-Pacific Group files for winding up application at High Court
Related: MPA revokes Inter-Pacific Petroleum Pte Ltd bunker supplier licence
Related: Co-heads of Trade and Commodities Finance for Asia-Pacific leave SocGen
Related: Inter-Pacific Group, Inter-Pacific Petroleum to hold creditors’ meet
Related: NewOcean detains Singapore-flagged bunker tanker “Pacific Energy 28”
Related: SocGen lawsuit against NewOcean Petroleum dropped, party to counterclaim
Related: MPA revokes Inter-Pacific Petroleum bunker craft operator licence
Related: Magnets on MFMs: Trial starts for former bunker clerk of “Consort Justice
Related: First suspect charged over MFM tampering in landmark case
Related: With nearly $180 million of debt, IPP proposes interim judicial management
Related: Inter-Pacific Group, Inter-Pacific Petroleum under judicial management
Related: Magnets on MFMs: “Consort Justice” crew pleads ‘not guilty’ to tampering charge
Related: IPP responds to temporary suspension of bunker craft operator licence
Related: MPA temporarily suspends IPP bunker craft operator licence
Related: Singapore: Bunker Cargo officer, crew face charges over alleged MFM tampering

A timeline organised list of events preceding events of International Energy Group is as follows:

Related: New Silkroutes under investigation over possible breach of Securities and Futures Act
Related: Singapore: Gas oil, fuel oil trading firm IEG disposed for $10 million
Related: Singapore: International Energy Group to be wound up; calls for creditors meeting
Related: Singapore: Liquidator issues notice of intended dividend to IEG creditors

Photo credit: Manifold Times
Published: 21 September, 2023

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