The latest US sanctions targeting Iran have disrupted the tanker
market. On 25 September 2019, OFAC listed COSCO Shipping Tanker
(Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship
Management Co (the Subsidiaries) as Specially Designated Nationals
(SDNs).
The designation of the Subsidiaries as SDNs means that all
property and interests in property of the Subsidiaries that is:
- in the US, or
- within the possession or control of
US citizens, permanent residents of the US, entities organised
under US law, individual and entities within US territory, and
foreign entities that are owned or controlled by the
foregoing,
are blocked. For that reason, US persons are generally
prohibited from dealing with the Subsidiaries. However, OFAC has,
in a frequently asked questions statement, clarified that the
sanctions do not apply to the entities' parent COSCO Shipping
Corporation Ltd (COSCO) or the Chinese carrier's other
non-blocked subsidiaries or affiliates.
