The Danish Maritime Authority is the competent authority in relation to the ban on the use of the Russian classification society, the provisions on the sale of tankers, the ban on providing reloading services and technical assistance for the transshipment of liquefied natural gas, a number of bans on designated ships and the ban on providing technical assistance for the transportation of petroleum products at sea, including the oil price ceiling. As a competent authority, the Danish Maritime Authority can provide guidance on the sanctions against Russia and Belarus.
The responsibility for providing guidance on other EU sanctions is divided between a number of different authorities. The distribution of competences between the authorities can be found on the website of the Ministry of Foreign Affairs of Denmark.
It should be noted that the Danish Maritime Authority cannot provide specific advice to individual companies on how to comply with the sanctions. In this regard, the Danish Maritime Authority recommends that companies seek legal advice.
OVERVIEW
Since 24 February 2022, the EU has adopted a wide range of regulations imposing severe sanctions against Russia and Belarus. The regulations are binding acts that apply directly to individuals and companies from the day they are published in the Official Journal of the EU. This means that companies, public authorities, private individuals, etc. must comply with the sanctions without the need for separate Danish legislation. Violation of the sanctions may result in a fine or imprisonment.
The European Commission has several relevant FAQs with helpful explanations, which can be found here:
- Consolidated FAQ
- Designated vessels
Regarding the ban on importing Russian oil into the EU, please refer to the website of the Danish Customs Agency.
EU SANCTION DESIGNATION OF SHIPS
Specific vessels are designated in Annex XLII of Council Regulation (EU) 833/2014. With regard to a vessel listed in Annex XLII, it is prohibited, directly or indirectly, to:
(a) provide access to ports, anchorage zones and locks in the territory of the Union, and for such a vessel to access them;
(b) import into the Union, purchase or transfer such a vessel;
(c) sell, supply, including charter, or export such a vessel;
(d) operate or crew such a vessel;
(e) provide flag registration for the benefit of such a vessel;
(f) provide financing and financial assistance, including insurance, as well as brokering services, including ship brokering;
(g) provide technical assistance and other services including bunkering, ship supply services, crew changes services, cargo loading and discharge services, fendering and tug services to the benefit of such a vessel; and
(h) engage in ship-to-ship transfers or any other transfer of cargo with, or procure any services from, such a vessel.
A list over the sanctioned vessels can be found on this page .
PROHIBITION TO PROVIDE LNG TRANSSHIPMENT
It shall be prohibited to provide transhipment services in the territory of the Union for the transhipment of liquefied natural gas falling within CN code 2711 11 00 originating in or exported from Russia.
It shall also be prohibited to provide, directly or indirectly, technical assistance, brokering services, financing or financial assistance related to the prohibition to provide transhipment services.
BAN ON THE USE OF THE RUSSIAN CLASSIFICATION SOCIETY
The Russian Maritime Register of Shipping is a Recognised Organisation. It has been added to the list of Russian state-owned or state-controlled entities subject to the EU transaction ban (EU Council Regulation 833/2014, Article 5aa)
The Danish Maritime Authority has not authorised the Russian ship register to perform approval tasks and issue certificates on Danish ships.
All certificates issued on behalf of an authority by the Russian Ship Register before 7 October 2022 will be revoked and cancelled by the relevant authority before 8 April 2023.
BAN ON TECHNICAL ASSISTANCE FOR THE TRANSPORT OF OIL TO THIRD COUNTRIES PURCHASED ABOVE THE PRICE CEILING
The oil price cap is set by the European Commission with 90 days' notice, in EU Council Regulation 833/2014, Annex XXVIII.
If oil originating in or exported from Russia is purchased above the applicable oil price cap, there is a ban on providing technical assistance, brokering or financial services related to trade and transport to third countries of Russian oil, including through ship transfers.
Oil originating in or exported from Russia listed in Annex XXV of EU Council Regulation 833/2014 is subject to the prohibition.
It is permitted to provide technical assistance etc. for the transport of Russian oil to third countries if the oil is purchased at a price below the oil price ceiling (EU Council Regulation 833/2014, Article 3n(6)(a)).
However, technical assistance is prohibited already upon the operator's knowledge or reasonable grounds to suspect sales above the price ceiling. (EU Council Regulation 833/2014, Article 3n(7))
If the oil has only been in transit in Russia to third countries, the prohibition does not apply.
If technical assistance is provided to vessels transporting crude oil or petroleum products, it is necessary to have certificates with itemised price information (EU Council Regulation 833/2014, Article 3n(6)). The European Commission recommends keeping the documentation for 5 years.
From 20 February 2024, all companies in the value chain must have access to itemised price information so that the price per barrel may be identified. The price information must be shared by the actors who have access to it, such as traders and charterers. Actors further down the supply chain, such as shipowners and insurance companies, should be able to collect and share specified price information from actors closer to the source of that information as part of their due diligence procedures. Competent authorities can request this information at any time from any actor, regardless of its position in the supply chain, in order to verify compliance with the oil price cap.
You can find more guidance on the oil price cap from the European Commission here:
In relation to the ban on importing Russian oil to the EU, please refer to the website of the Danish Customs Agency.
OTHER BANS WITH MARITIME RELEVANCE
In the section below you can read more about other sanctions against Russia and Belarus that are of particular relevance to maritime companies, but where the Danish Maritime Authority is not the competent authority. It is emphasized that there may be other relevant sanctions and that it is the companies' responsibility to comply with them and seek legal assistance if necessary.
EXCEPTIONS
It should be noted that a number of exceptions apply - including if there is a danger to safety or the environment, and pilotage services can still be provided for reasons of safety at sea.
PROVISION OF SERVICES
The Danish Business Authority is responsible for provisions on freezing, including the prohibition of direct and indirect provision of funds or economic resources.
Most EU sanctions regulations contain a provision that no funds or economic resources may be made available to or for the benefit of the natural or legal persons, entities or bodies subject to freezing. This prohibition applies both directly and indirectly. Such a provision can be found, inter alia, in:
- Regulation No 269/2014 on Russia in Article 2(2).
The Russian state-owned company, SOVCOMFLOT, as an example, is covered by such a prohibition.
Therefore, the ban affects all ships directly or indirectly owned by SOVCOMFLOT, regardless of whether they are ships carrying LNG (LNG carriers), ships carrying cargo (bulk or container ships) or other ships, such as tugs etc.
For example, such ships can neither call at EU ports nor receive services from Danish or EU companies. SOVCOMFLOT has been subject to the ban since June 24, 2024.
You can read more about the ban and relevant sanctions on the Danish Busniess Authority’s website (In Danish).