Jeremy Paner Discusses Sanctions Complexities Surrounding Russian Diesel Imports with BBC and Fox News

Speaking to the BBC and Fox News, Jeremy Paner discussed the sanctions complexities surrounding Russian diesel shipments bound for the U.S. and the potential legal risk to companies involved in related transactions.

The shipments follow an agreement between President Donald Trump and Russian President Vladimir Putin and an OFAC license permitting certain Russian diesel imports.

Appearing on the BBC’s “World Business Report”, Paner said that transporting diesel involves numerous companies operating across different jurisdictions, which could face legal exposure if their home countries prohibit those dealings.

“It's not as simple as just putting some diesel on some ships in Russia, and then sending them on their way,” he said. “There will be traders, brokers, financiers, shipping and tank management companies, bunkering companies, insurance, and reinsurance.”

“If they have any involvement with a sanctioned vessel, and under their home country's laws they are prohibited from dealings with sanctioned vessels, then they are definitely on the hook for civil and potentially criminal exposure in their home jurisdictions,” Paner said.

Paner explained that Trump’s authorization of the shipments would not extend to companies governed by other sanctions regimes.

“The U.S. authorization would only be applicable to U.S. companies,” he told the BBC. “Trump's license would have no effect whatsoever on a European trader or broker that would be involved.”

Speaking with Fox News, Paner detailed the legal effect of the U.S. authorization.

“Trump's action did not lift or remove or waive the underlying prohibition on the importation of Russian diesel into the United States,” he said. “What it did was authorize it, and, as a matter of law, that's different. A license does not get rid of a prohibition. It's simply allowed.”

Paner also discussed how interactions among different sanctions regimes could complicate the shipments because of the number of international companies involved in the maritime industry, which also face potential reputational risks.

“There could be European operators involved, and the U.S. authorization would not authorize those European, U.K. or Canadian companies to have any involvement in these shipments,” Paner told Fox News.

“I think, in part, there's some misunderstanding about how these interconnected, sanctions regimes work, you know, in Brussels versus in Washington, D.C.,” Paner told the BBC. “And then when you're talking about overlapping, contradictory sanctions laws, it gets quite, quite complicated.”

The shipments will also face scrutiny from Congress. Fox News reported that lawmakers warned companies involved that they could face investigations, while the BBC reported that U.S. senators had raised the possibility of legal action and congressional investigations.

“I'm confident that Congress is going to investigate on the U.S. side, and then from investigating the U.S. involvement, they'll be able to understand the non-U.S. companies that are involved as well,” Paner told Fox News.

Ultimately, Paner predicted that the overlapping sanctions restrictions could prevent future shipments.

“I think there's going to be too many connections to the EU and to the UK, that the key players, that transport, finance and insure these shipments aren’t going to be able to be on the field, so to speak,” he told the BBC. “They are not going to be able to play in the game, and I predict these shipments will more likely than not fizzle out.”

Listen to the BBC interview and read the Fox News article.