OFAC Publication Of Price Cap Coalition Alert

On February 1, 2024, the United States Department of Treasury's Office of Foreign Assets Control ("OFAC") published a Price Cap Coalition Compliance and Enforcement Alert (the "Alert"). Per the Alert, the "Price Cap Coalition," which consists of the G7, the European Union, and Australia, has two key objectives: (1) constraining Russian revenues that could otherwise be used to fund Russia's war against Ukraine, while (2) maintaining global oil flows and protecting energy security. The Alert contains an overview of key oil price cap ("OPC") evasion methods and recommendations for identifying such methods and mitigating their risks and negative impacts as well as information of how to report OPC suspected breaches across the Price Cap Coalition. The Alert also noted that it builds on multiple previous alerts issued by the Price Cap Coalition.