US sanctions against Sudan lifted

American Club and West of England Club have noted that one of the final executive acts of the outgoing US Obama administration has been to lift US economic sanctions against Sudan. The order was signed on January 13th and became effective from January 17th.

“As a consequence of the lifting of the sanctions, the American Club’s provision of cover for trade with Sudan by its non-US person members is no longer prohibited or subject to OFAC authorization. Additionally, Members of the American Club who are US persons and operate US vessels are now authorized to trade with Sudan” said American Club.

West Of England’s US counsel Freehill Hogan & Mahar also released a commentary on the rule change. West of England noted that both the EU and the US have sanctions in place against Sudan, with the US programme being more comprehensive. Now, however, OFAC has issued a general licence allowing US persons to engage in transactions involving Sudan, including permitting US banks to undertake US dollar transactions. US persons are now able to trade freely with Sudan and, importantly, West of England Club Members can structure their trades involving Sudan so that hire and freight are paid in US dollars.

However, West of England noted that, 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.

Legal analysis is on the West of England P&I Club site here: