OFAC Removes Sanctions From COSCO Subsidiary

The Treasury’s Office of Foreign Assets Control removed sanctions against a COSCO subsidiary that it had designated in September (see 1909250050), according to a Jan. 31 notice. The move removed sanctions from COSCO Shipping Tanker (Dalian) Co. but kept sanctions against COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co., the other COSCO subsidiary designated by OFAC last year. OFAC had recently renewed a license authorizing certain transactions with COSCO Shipping Tanker (Dalian) Co., which was set to expire Feb. 4 (see 1912200032).

In total, OFAC deleted eight entries from its Specially Designated Nationals List, including Dalian Ocean Shipping Co., Dalian Yuanyang Yunshu Gongsi, Dalian Zhongyuan Haiyun Youpin Yunshu Youxian Gongsi and Yazhou Xu, an individual. The designations caused confusion and uncertainty in the global tanker market as oil traders canceled bookings amid fears of violating U.S. sanctions (see 1910030021). Treasury did not immediately release information on the changes and did not respond to a request for comment.