Studio Legale Mordiglia’s Post

Legal Analysis of Safe Port in Tanker Charter Parties and its Challenges in the Context of Economic Sanctions Seyed Mohamad Hassan Razavi Corresponding Author; Department of Public and International Law, Faculty of Law and Political Sciences, University of Tehran, Tehran, Iran. Mojtaba Einy Department of Public and International Law, in Oil and Gas Law, Faculty of Law and Political Sciences, University of Tehran, Tehran, Iran. DOI:https://lnkd.in/gRtxqhFH Keywords: #Safe Port, #Economic Sanctions, #Charter Party, #Oil Tankers

Happy to share that my #article titled "Cold War on International Arbitration: The Role of Unilateral Economic Sanctions in Eroding the Rule of Law" will be featured in the 2nd Special Issue of OGEL Energy Law / Transnational Dispute Management (TDM), themed "Sanctions and International Arbitration: Impact on Substantive and Procedural Issues." A shout-out to all the editors of the #journal for their invaluable inputs and a seamless and responsive editorial process. Briefly, the article attempts to address some questions including: Why do some states not have a dedicated #sanctionsregime? Are #sanctions and the #ruleoflaw on a collision course? Is #internationalarbitration being dragged into a game of house of cards? And what can we, as #lawyers / #arbitration practitioners, do to steer clear of the resultant substantive and procedural legal dilemmas? Furthermore, it addresses the growing fear--which we term as the "#sanctionsparanoia"--and its influence on stakeholders and conduct of proceedings. Note: The article is objective and devoid of (and does not endorse) any political viewpoints. It is published in my individual capacity and does not concern any of the organizations I may be associated/affiliated with.

#USA studies, studies and studies the measures and actions to apply to the #VenezuelanRegime. Meanwhile, oil extraction companies continue there and their exploitation licenses are renewed. Too much nonsense and rhetoric without decisive action. Doing nothing with those companies means lots of money for the #Regime to keep on going and mock the sanctions.

FT [excerpt]: The #EU is seeking to claw back up to €100mn from the Cypriot government after a Chinese-led consortium abandoned a #gas import terminal project that is now being investigated for #corruption. In 2018 the Cypriot government awarded the €542mn contract for the construction of the Vasilikos liquefied natural gas terminal to a consortium comprising #China Petroleum Pipeline (CPP), Hudong-Zhonghua Shipbuilding, Norway’s Wilhelmsen Ship Management and the UK’s Metron. The project, designed to reduce the country’s reliance on imported oil, was originally due to be completed by 2019. However, it ran into delays and the deadline was first extended to 2022 and then beyond. The deal finally fell apart on July 18 amid accusations that the consortium was not meeting its contractual obligations. CPP has gone to international arbitration in London to try to force Nicosia to hand over €200mn. The EU’s agency in charge of climate, infrastructure and environment, Cinea, on July 24 sent a request to the Cypriot government to give explanations about the use of EU funding by September and prepare to return part of it. #Cyprus has already received €69mn of the total €101mn in EU grant earmarked for this project, according to Cypriot officials. A day later, the European Public Prosecutor’s Office (EPPO) said it had “opened an investigation into a project for a liquefied natural gas import terminal in Cyprus, on suspicion of #procurement fraud, misappropriation of EU funds and corruption”. ...In its public 142-page report, the Cypriot national audit office described the multiple times that it raised concerns about delays, increasing costs, and the quality and safety of the project. The audit office recommended the consortium be stripped of the contract. The natural gas infrastructure company of Cyprus, Etyfa, which was the beneficiary of the project, said that was impossible because of the urgent need for the terminal. The consortium asked for an extra €25mn to cover the increase in the cost of steel which was approved by the treasury of Cyprus against the recommendation of the national audit office. Etyfa also waived its right to seek damages from the consortium in respect to unreasonable delays. But on July 18, it was Etyfa that pulled the plug on the project, saying in a statement that despite all their efforts, a “series of violations” of contractual terms by the Chinese-led consortium “leave no room than terminating this agreement” and pursuing legal action against them. #news #business

PRESS RELEASE ANRE's Planned Groundless Financial Sanctions on Rotalin Gaz Trading SRL May Lead to Insolvency Chișinău, May 27, 2024 – Rotalin Gaz Trading SRL (Rotalin), a major private gas distribution company in Moldova, is facing significant administrative pressure from the National Energy Regulatory Agency (ANRE), which may impose a fine ranging from 11 to 49 million lei. This decision, slated for approval at ANRE's Board of Directors meeting on May 28, 2024, raises serious concerns about compliance with Moldavian law and the broader implications for the energy sector, as it may lead to the insolvency and forced exit of Rotalin Gaz Trading from the Moldavian gas distribution market. Background and Legal Challenges On 05.09.2023, ANRE established a new supply tariff for Rotalin at the level of 10,84 lei/m3, significantly lower than the tariff for Moldovagaz, which was 16,73 lei/m3 at the time. Currently, the tariff for Moldovagaz remains around 12,15 lei/m3, raising concerns about the fairness of such a low tariff exclusively for Rotalin. Due to this unviable tariff, Rotalin was unable to operate effectively. Consequently, since October 3, 2023, according to ANRE’s decision Moldovagaz began supplying gas to all of Rotalin’s consumers without any competitive selection, leading to the loss of the supply business by Rotalin. On January 30, 2024, by Decision No. 44, which is currently being disputed by Rotalin in court, ANRE initiated a procedure to impose financial sanctions against Rotalin for alleged non-compliance with public service obligations (PSO) to supply gas at regulated prices. Despite the ongoing court proceedings, ANRE is proceeding with the imposition of financial sanctions ranging from 11 to 49 million lei, which could lead to Rotalin's insolvency and forced exit from the gas distribution business after over 20 years of service and tens of million EUROs of investments in development of rural gas networks in Moldova. Key Points of Contention 1. Ongoing Legal Litigations: Rotalin is currently contesting ANRE's decision on the non-execution of the PSO in court, with no final verdict yet reached. Imposing such significant sanctions at this stage is premature and legally questionable, as per Article 81, 140 of the Administrative Code of Moldova ANRE should postpone the decision on sanctions until the court's final decision. The fine should not be imposed while the case is still disputed in court. 2. Disputed Excessive Earnings: Rotalin disputes ANRE's calculations of alleged excessive earnings, which exclude significant pre-2023 losses. Rotalin has proposed collaboration with ANRE under the supervision of the Energy Community Secretariat on this matter but has received no response. (Please follow the link to access the full version of press release issued by the company https://lnkd.in/eNG65eNy)  

On December 3, 2024, the U.S. Department of the Treasury's Office of Foreign Assets Control (#OFAC) announced a $14.55 million settlement with #Aiotec GmbH, a Berlin-based company, for violating the Iranian Transactions and Sanctions Regulations (#ITSR). Between 2015 and 2019, Aiotec conspired to facilitate the sale of an Australian polypropylene plant to #Iran, processing payments through U.S. financial institutions. Aiotec deceived the U.S. company by including contractual clauses that suggested the plant would not ultimately be delivered to Iran. Additionally, the company collaborated with #freightforwarders who provided false shipping documents, continuing to mislead the U.S. seller even as concerns about the plant’s destination emerged. This settlement, which represents 75% of the maximum fine, also requires Aiotec to establish a U.S. #sanctions compliance program under OFAC's oversight. Notably, the company’s executives were not criminally charged despite willful misconduct. https://lnkd.in/g9-X4J_i

🚨 New Oil Price Cap Advisory Alert 🚨 Key points are as follows: 🌍 UK Sanctions Enforcement: The Office of Financial Sanctions Implementation (OFSI) oversees the UK’s ban on maritime transportation of Russian oil and the Oil Price Cap (OPC), including civil enforcement of breaches. 🚩 Evasion Tactics: Instances of Russian oil being misrepresented as non-Russian through falsified certificates of origin (CO) have been identified, with red flags and mitigation measures provided to help UK entities detect and prevent such evasion. 🔍 Due Diligence: Industry stakeholders are advised to conduct thorough due diligence, including verifying CO details, checking for inconsistencies, and using alternative documentation to corroborate information. 🛡️ Mitigation Measures: Suggested actions include verifying the legitimacy of COs, conducting audits of related documents, and reporting suspicious activities to national authorities. 📋 Case Study & Checklist: The advisory includes a case study and a detailed checklist to help assess the validity of COs, ensuring compliance with the OPC. This follows the Office of Foreign Assets Control "Compliance Communique" on 31 October 2024. It's clear the expectations for those in the maritime sector continue to increase significantly. #Sanctions #UKRegulations #Compliance #DueDiligence #RiskManagement https://lnkd.in/efnhCwDm

2025 is set to be an interesting year for sanctions with the new US administration, a back log of sanctions enforcement cases, developing trends in the use of designations as a quasi-enforcement tool, and the increasing privatisation of sanctions implementation. With that in mind, it seemed an opportune moment to take stock of what we've seen in 2024, and how the sanctions enforcement landscape is likely impact those in the commodities sector in particular. Here's a link to my discussion of all the above in HFW's Commodities Bulletin January 2025: https://lnkd.in/gZvNpF6J Access the full bulletin in the link below. #sanctions #HFWSanctions #tradesanctions #financialsanctions #sanctionsenforcement #HFW #Commodities #financialcrime

Arbitration in Crisis: Resolving Investor Disputes Amid Political and Environmental Change While exploring the evolving role of arbitration, I recently stumbled upon an insightful piece discussing the challenges international arbitration faces in light of the ongoing Russia-Ukraine war and global sanctions. The article highlighted how geopolitical tensions and climate policies are reshaping the arbitration landscape, particularly in investor-state disputes. It made me reflect on how foreign investors are using arbitration to address asset seizures or losses tied to sanctions, especially under Bilateral Investment Treaties (BITs). As a student, I find it fascinating to explore how arbitration is becoming a go-to solution for investors facing such complexities. For example, recent claims involving sanctions against Russia show how politically sensitive these disputes can be. Similarly, climate regulations are leading to disputes with investors in sectors like renewable energy challenging sudden policy shifts under treaties such as the Energy Charter Treaty (ECT). From my perspective, studying these evolving dynamics provides invaluable insight into how arbitration must balance state sovereignty, public interest, and investor protection. I look forward to seeing how tribunals continue to navigate these high-stakes disputes in the years to come.

❗Check out this article about the first ratification of the International Treaty on the Exchange of Data for the Verification of Asset Declarations, published on The Global Anticorruption Blog. RAI eagerly expects that other countries will also ratify the Treaty in the near future. In anticipation of this, our experts prepared valuable documents, “Assessment of the legal framework and technical capacities for collection, verification and exchange of asset declaration data in the Southeast Europe – REPORT” and “Integrating the Treaty into National Laws” to help countries in this process. Looking forward to starting with the implementation of the Treaty! #anticorruption #corruption https://lnkd.in/eEZuHgfC