DEPARTMENT OF THE TREASURY

WASHINGTON, D.C.

February 3, 2023

Revised on: December 20, 2023

The price caps ................................................................................................................................................ 3

When does a price cap “start” and “stop”? ................................................................................................... 4

Covered articles ............................................................................................................................................. 5

Covered services ........................................................................................................................................... 5

Processing, clearing, or sending of payments by intermediary banks ........................................................... 6

III. SAFE HARBOR ....................................................................................................................................... 6

Overview of safe harbor ................................................................................................................................ 6

Due diligence ................................................................................................................................................. 8

Specific guidance per tier .............................................................................................................................. 8

Table of safe harbor documentation ............................................................................................................ 11

Specific licensing ........................................................................................................................................ 14

The United States is part of an international coalition, including the G7, the European Union, and Australia,

cap policy for both crude oil of Russian Federation origin (“Russian oil”) and petroleum products of Russian

Federation origin (“Russian petroleum products”).

On December 20, 2023, OFAC updated this document to provide additional guidance for certain service

providers. This guidance outlines new expectations for those service providers to 1) receive attestations within

a specified timeframe for each lifting or loading of Russian oil or Russian petroleum products, and 2) retain,

provide, or receive itemized ancillary cost information as required. To continue benefiting from the safe harbor

detailed below, OFAC expects U.S. service providers to be in compliance with this updated guidance by

February 19, 2024.

The price cap policy is intended to maintain a reliable supply of crude oil and petroleum products to the global

market while reducing the revenues the Russian Federation earns from oil after its own war of choice in

Origin”) (the “petroleum products determination”).

The effect of the crude oil determination and the petroleum products determination is to authorize U.S. persons

to provide certain services as they relate to the maritime transport of Russian oil and Russian petroleum

products (the “covered services”), as long as such crude oil or petroleum products are purchased at or below a

certain price (the “price cap”). The covered services are:

inadvertently violating U.S. law or regulation. U.S. service providers that comply in good faith with this safe

harbor process, as set forth in this document, will not face OFAC penalties.

The crude oil determination took effect at 12:01 a.m. eastern standard time on December 5, 2022. The

petroleum products determination took effect at 12:01 a.m. eastern standard time on February 5, 2023.

As stated in the crude oil determination and further explained in Frequently Asked Question (FAQ) 1094,

crude oil of Russian Federation origin that was loaded onto a vessel at the port of loading prior to 12:01 a.m.

eastern standard time, December 5, 2022, and unloaded at the port of destination prior to 12:01 a.m. eastern

standard time, January 19, 2023, is not subject to the crude oil determination. Consequently, U.S. service

providers can continue to provide covered services with respect to crude oil of Russian Federation origin

covered services with respect to Russian petroleum products purchased at any price, provided that the Russian

petroleum products are loaded onto a vessel at the port of loading for maritime transport prior to 12:01 a.m.

eastern standard time, February 5, 2023, and unloaded at the port of destination prior to 12:01 a.m. eastern

daylight time, April 1, 2023.

The crude oil determination and the petroleum products determination do not authorize the import of Russian

oil or Russian petroleum products into the United States, which is prohibited pursuant to E.O. 14066.

The price caps

Origin”).

Shipping, freight, customs, and insurance costs are not included in the price caps and must be invoiced

separately and at commercially reasonable rates. While shipping and insurance are covered services, these

costs are distinct from the price caps on Russian oil and Russian petroleum products. Please see below for

guidance on when a price cap “starts” and “stops.” OFAC would view the billing of commercially

unreasonable shipping, freight, customs, or insurance costs as a sign of potential evasion of the price cap.

The following is an example of a permissible transaction:

When a new price cap for Russian oil or Russian petroleum products is set, the Secretary of the Treasury, in

consultation with the Secretary of State, will issue a new determination pursuant to E.O. 14071, to replace the

previous determination, and publish it in the Federal Register. If a price cap changes, OFAC intends to

authorize a period for covered services providers to complete the provision of services engaged for the

maritime transport of Russian oil or Russian petroleum products purchased in accordance with the previous

price cap.

When does a price cap “start” and “stop”?

A price cap applies from the embarkment of maritime transport of Russian oil or Russian petroleum products

Federation, the price cap still applies. This means any covered services, as listed in the crude oil determination

or the petroleum products determination, can only be provided by U.S. service providers if such Russian oil or

Russian petroleum products are sold at or below the relevant price cap.

However, for Russian crude oil, once it is substantially transformed (e.g., it is refined or undergoes other

substantial transformation such that the product loses its identity and is transformed into a new product having

a new name, character, and use) in a jurisdiction other than the Russian Federation, it is no longer considered

to be of Russian Federation origin, and thus the price cap no longer applies (even if the refined oil is further

exported using maritime transport). Thus, a refiner in a jurisdiction that has not banned the import of Russian

oil can purchase crude oil at or below the price cap and rely on U.S. service providers for services related to

the maritime transport of that crude oil. In addition, such a refiner can subsequently refine the crude oil and

blending operations to be substantial transformation if a blending operation results in a tariff shift of the

Russian petroleum product (e.g., a change in the applicable Harmonized Tariff code). OFAC would not

consider crude oil or petroleum products to be of Russian Federation origin solely because such articles

contain a de minimis amount of crude oil or petroleum products left over from a container or tank (e.g., a “tank

damage to the container).

For the purposes of assessing whether crude oil or petroleum products are of Russian Federation origin, U.S.

persons may reasonably rely upon a certificate of origin but should exercise caution if they have reason to

believe such certificate has been falsified or is otherwise erroneous. Crude oil that transits through a pipeline

in the Russian Federation that is loaded and certified with a certificate of origin verifying that the crude is of

Covered articles

For the purposes of the crude oil determination, “crude oil” means articles defined at Harmonized Tariff

Schedule of the United States (“HTSUS”) subheading 2709.00.

subject to the Discount to Crude price cap include naphtha, residual fuel oil, and waste oils.

with existing insurance policies originally underwritten by other insurance carriers, including the

reinsurance of a non-U.S. insurance carrier by a U.S. person; and liability insurance for maritime

liability risks associated with the operation of a vessel, including cargo, hull, vessel, P&I, and

charterer’s liability.

relevant price cap.

Service providers are generally divided into three “tiers” of actors. To be afforded the safe harbor, actors must

comply with the following:

from relevant authorities). Reinsurers can use a sanctions exclusion clause in their policies or

contracts.

This “safe harbor” for service providers through the recordkeeping and attestation process is designed to shield

such service providers from strict liability for breach of sanctions in cases where service providers

inadvertently deal in the purchase of Russian oil or Russian petroleum products sold above the relevant price

misrepresentations. For example, where a service provider without direct access to price information

reasonably relies on a customer attestation, and retains the attestation, that service provider will not be held

liable for sanctions violations attributable to those acting in bad faith who cause a violation of the crude oil

determination or the petroleum products determination, or an evasion of OFAC sanctions.

U.S. persons providing covered services are required to reject participating in an evasive transaction or a

transaction that violates the crude oil determination or the petroleum products determination, and report such a

transaction to OFAC, in accordance with 31 CFR § 501.604.

For all persons providing covered services, a customer’s or counterparty’s refusal or reluctance to provide the

necessary documentation or attestation should be considered a red flag that may indicate the entity has

purchased Russian oil or Russian petroleum products above the relevant price cap.

must maintain and retain information showing that Russian oil or Russian petroleum products for

maritime transport were purchased at or below the relevant price cap, including itemized ancillary cost

information as relevant for a given contract or transaction. This could take the form of invoices,

contracts, receipts/proof of payment, or other documentation that shows price information.

negotiated at the start of the trade transaction, and for “Cost, Insurance, and Freight” (CIF)

trades, an itemized record should be kept for all known costs negotiated at the start of the trade

transaction, port dues and services charges at the point of loading/export, and relevant

insurance and freight costs. Itemized ancillary costs may vary across other trade contracts and

terms but should include at least those negotiated at the start of the trade transaction.

finance related to the maritime transport of Russian oil or Russian petroleum products should

implement appropriate and reasonable risk-based policies and procedures within sanctions

compliance programs to confirm that that the price does not exceed the relevant price cap.

Financial institutions providing trade finance routinely collect trade documentation to manage

financial and compliance risks. Such information may contain trade or transaction information

showing the origin of articles, date, and unit price. If obtaining such documentation is not

practicable in the ordinary course of business, financial institutions must obtain and retain

signed attestations from their downstream customers or subcontractors that the Russian oil or

Russian petroleum products were purchased at or below the relevant price cap to be afforded

the safe harbor.

financing related to the maritime transport of Russian oil or Russian petroleum products should

also implement appropriate and reasonable, risk-based policies and procedures within

sanctions compliance programs to confirm that that the price does not exceed the relevant

price cap. Financial institutions must obtain and retain signed attestations from their

petroleum products. This attestation must be obtained within 30 days of each lifting or loading of

Russian oil or Russian petroleum products. If, in the ordinary course of business, a ship/vessel agent

has access to or can request price information, then the ship/vessel agent must request and retain that

information to be afforded the safe harbor. If obtaining such information is not practicable in the

ordinary course of business, ship/vessel agents must obtain and retain signed attestations in which the

customer commits that for the service being provided, the Russian oil or Russian petroleum products

were or will be purchased at or below the relevant price cap to be afforded the safe harbor. For

example, a ship/vessel agent representing the interests of a shipowner (who is a Tier 3 Actor) may not

in the ordinary course of business have access to or be able to request price information, and thus must

obtain and retain an attestation within 30 days of a counterparty’s lifting or loading of Russian oil or

can request price information, then the customs broker must request and retain that information to be

afforded the safe harbor. If obtaining such information is not practicable in the ordinary course of

business, customs brokers must obtain and retain signed attestations within 30 days of a counterparty’s

lifting or loading of Russian oil or Russian petroleum products.

loading Russian oil or Russian petroleum products. If a Tier 2 Actor discovers that a counterparty lifted

Russian oil or Russian petroleum products and failed to provide an attestation to the Tier 2 Actor within the

30-day period, the Tier 2 Actor should request one immediately.

A Tier 2 Actor that requests an attestation or information from a counterparty as described in this guidance would

be afforded safe harbor, the Tier 2 Actor must disclose to OFAC their counterparty's refusal to provide an