The shipping industry’s leading contracts organisation is moving to create standardised contractual language in response to sweeping new European Union rules governing the sale of tankers.
According to Ship & Bunker, BIMCO has begun work on a dedicated contractual clause designed to help the market navigate new requirements introduced under the EU’s 20th sanctions package against Russia, adopted in April of this year.
What the EU Rules Require
The EU’s latest sanctions regime places specific obligations on EU-based sellers of tankers. As reported by Ship & Bunker, these include:
- Conducting and documenting a risk assessment concerning the potential onward transfer of a vessel to Russia
- Implementing appropriate risk mitigation measures
- Notifying the relevant competent authority of each sale
- Including a contractual prohibition on resale to Russian entities or use in Russia within the sale contract itself
A notable element of the new framework is that these obligations do not end with the first transaction. The restriction must flow through the contractual chain, meaning buyers are required to include equivalent provisions in any subsequent sale or transfer of the vessel.
BIMCO’s Response
To address the practical challenges this creates for the sale and purchase market, Ship & Bunker reports that BIMCO will establish a dedicated subcommittee to develop a Russia Tanker Resale Restrictions Clause for use in memoranda of agreement. The organisation has indicated it will treat the project as a priority, aiming to deliver a solution that is both commercially balanced and consistent with the regulatory requirements.
The goal, as described in BIMCO’s own statement, is to support consistent market adoption across successive transactions.
Does This Matter to You?
The development of this clause has direct practical relevance across the tanker sale and purchase market. For any party involved in buying, selling, or financing tankers — particularly where EU sellers are involved — the absence of standardised contractual language creates uncertainty and potential compliance risk. A BIMCO-backed clause would offer a commonly accepted framework, reducing the burden of negotiating bespoke provisions on a deal-by-deal basis.
The requirement for restrictions to cascade through subsequent sales also broadens the circle of parties who may need to engage with these provisions, extending compliance considerations well beyond the original transaction.
Ship & Bunker also notes that the EU has previously sanctioned a number of vessels linked to the Russian shadow fleet, indicating that enforcement in this space is active and ongoing.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
