Both the EU and the US have sanctions in place against Sudan, though the US programme is more comprehensive and prevents US persons (including US banks) from being able to transact business related to Sudan.
However, in view of recent cooperation between the US and the Government of Sudan, an Executive Order issued by President Obama has paved the way for US sanctions against Sudan to be lifted in July 2017. OFAC have issued a general licence allowing US persons to engage in transactions involving Sudan in the meantime, including permitting US banks to undertake Dollar transactions.
US persons are now able to trade freely with Sudan and, importantly, Members can structure their trades involving Sudan so that hire and freight are paid in Dollars.
Details can be found in a Client Alert (please click here) produced by the Club’s US attorneys Freehill Hogan & Mahar.
But as the Alert makes clear, until the sanctions are formally lifted in July Members should continue to have effective sanctions provisions in their charter parties and contracts of carriage in case sanctions should snap back into place. US persons must also continue to avoid any transaction involving an entity on the US SDN list.
There has been no intimation of any changes in the EU sanctions against Sudan, but these are limited. Only four entities currently appear on the EU SDN list for Sudan.
Any Member with questions concerning the impact of these measures and any other sanctions matters should contact the Managers.