OFAC Authorizes Certain Transactions With Sanctioned COSCO Subsidiary

The Treasury’s Office of Foreign Assets Control issued a general license to allow certain transactions with COSCO Shipping Tanker (Dalian) Co. -- a subsidiary of COSCO Shipping Corporation -- until Dec. 20, OFAC said in an Oct. 24 notice. General License K allows transactions that are necessary to the “maintenance or wind down” of transactions with COSCO Shipping Tanker (Dalian) and any entity it owns by more than 50 percent. The license does not authorize transactions with COSCO Shipping Tanker (Dalian) Seaman and Ship Management Co.

OFAC sanctioned the shipping company in September and issued a set of Frequently Asked Questions (see 1909250050). The sanctions caused confusion and uncertainty in the tanker market, as parties scrambled to book other ships and verify which vessels and entities were subject to U.S. sanctions (see 1910030021).