relevant price cap.
Service providers are generally divided into three “tiers” of actors. To be afforded the safe harbor, actors must
comply with the following:
• Tier 1 Actors: Actors who regularly have direct access to price information in the ordinary course of
business, such as commodities brokers and oil traders, are “Tier 1 Actors.” To be afforded the safe
harbor, Tier 1 Actors must retain documents showing that Russian oil or Russian petroleum products
were purchased at or below the relevant price cap, including itemized ancillary cost information (e.g.,
shipping, insurance, and freight costs). Such documentation may include invoices, contracts, or
receipts/proof of payment.
• Tier 2 Actors: Actors who are sometimes able to request and receive price information from their
customers in the ordinary course of business, such as financial institutions, ship/vessel agents, and
customs brokers, are “Tier 2 Actors.” To be afforded the safe harbor, Tier 2 Actors must, to the extent
practicable, request and retain documents that show that Russian oil or Russian petroleum products
were purchased at or below the relevant price cap, including itemized ancillary cost information.
When not practicable to request and receive such information, Tier 2 Actors must obtain and retain
customer attestations, in which the customer commits that for the service being provided, the Russian
oil or Russian petroleum products were purchased or will be purchased at or below the relevant price
cap. Certain Tier 2 Actors should obtain attestations within 30 days of a counterparty’s lifting or
loading of Russian oil or Russian petroleum products (e.g., calling at a port in the Russian Federation
or performing a ship-to-ship transfer to load Russian oil or Russian petroleum products).
• Tier 3 Actors: Actors who do not regularly have direct access to price information in the ordinary
course of business, such as insurers, P&I clubs, shipowners, and flagging registries, are “Tier 3
Actors.” To be afforded the safe harbor, Tier 3 Actors must obtain and retain customer attestations, in
which the customer commits that for the service being provided, the Russian oil or Russian petroleum
products were purchased or will be purchased at or below the relevant price cap. As explained in
greater detail later in this guidance, most Tier 3 Actors should obtain attestations each time a
counterparty loads or lifts Russian oil or Russian petroleum products, (e.g., calling at a port in the
Russian Federation or performing a ship-to-ship transfer to load Russian oil or Russian petroleum
products). These Tier 3 Actors should also require counterparties to share additional information upon
request, including itemized ancillary costs such as freight and insurance costs. Examples of triggers for
requests for additional information (including ancillary cost information) include if a Tier 3 Actor
becomes suspicious about a possible violation in the course of their own due diligence or if a Tier 3
Actor receives information about a suspected violation (i.e., from open source reporting or a request
from relevant authorities). Reinsurers can use a sanctions exclusion clause in their policies or
contracts.
This “safe harbor” for service providers through the recordkeeping and attestation process is designed to shield
such service providers from strict liability for breach of sanctions in cases where service providers
inadvertently deal in the purchase of Russian oil or Russian petroleum products sold above the relevant price
cap owing to falsified or erroneous records provided by those who act in bad faith or make material
misrepresentations. For example, where a service provider without direct access to price information
reasonably relies on a customer attestation, and retains the attestation, that service provider will not be held
liable for sanctions violations attributable to those acting in bad faith who cause a violation of the crude oil
determination or the petroleum products determination, or an evasion of OFAC sanctions.
To be afforded the safe harbor, U.S. service providers must retain relevant records for five years, in accordance
with 31 CFR § 501.601.