LSIW U.S./EU Sanctions Update Seminar Summary

International trade sanctions are of increasing concern to the shipping industry.  Inevitably, given the current regional tensions, sanctions against Iran and Syria have received much media attention recently, but both the United States and EU have sanctions regimes in place in respect of other territories and designated entities and individuals.
Reed Smith Shipping Partner Andrew Taylor explains; “sanctions affect our clients in many ways, and not only those within the shipping industry.  Sanctions target the goods they may wish to carry or trade, the parties with whom they may wish to do business, and the ability to transfer funds.  Where applied, sanctions can affect the existence of insurance cover.  Even where they do not threaten the existence of cover, they often affect a P&I Club’s ability to provide support to its members should a problem arise.”
Today, at London International Shipping Week, Reed Smith London’s Shipping Practice held a U.S./EU Sanctions Update Seminar in which two members of the Practice gave an overview of current international sanction regimes.  The aim of the event was to enable businesses and individuals to be better protected against sanctions.
Alexandra Allan, Shipping Associate gave a whistle-stop tour of EU sanctions causing the greatest impact on shipping and international trade.  This included asset freezes as well as restrictions that apply to imports and exports, fund transfers, financial services and general transport.
Matthew Thomas, a partner at the Reed Smith Washington D.C. office with over 20 years of experience in international trade, transport and maritime law, explored the key trends and themes within the growing territorial expansion of US sanctions.  These included the evolution of the US from domestic to extraterritorial sanctions; the importance of dialogue; the global evolution of sanctions awareness, due diligence and contract clauses.  Ultimately, Matthew pointed to the need for shipping to have a more elevated voice in Washington.
Event chair David Myers, Shipping Counsel, Reed Smith concluded; “the real concern for those involved in international shipping is making sure that there aren’t issues on the other side of the Atlantic.”
Source: Reed Smith LLP