UNICORN PRIVATE Sanctions risks in energy and commodities: what to check
In short
Energy and commodity trading is one of the sectors most targeted by sanctions.
The main risks are goods of sanctioned origin, listed traders and vessels, and complex ownership structures.
Check every counterparty, vessel and origin against the sanctions lists before each deal.
Typical sanctions risks in this industry
- Buying or selling oil, gas, metals or other commodities of sanctioned origin.
- Dealing with traders, refiners or shipowners that are listed or owned by listed persons.
- Shipments that do not respect the price caps and the related conditions.
- Blending or transshipment to hide the real origin of the goods.
- Complex ownership chains that hide listed persons.
Recommended checks
- Screen counterparties, owners, banks and vessels against the sanctions lists for every deal.
- Verify the origin of the goods with documents and, when possible, independent data.
- Check the applicable trade restrictions, including price caps.
- Watch for ship to ship transfers, gaps in vessel tracking and unusual routes.
- Keep records of the checks and of the decisions taken.
Official sources
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Frequently asked questions
Why is the energy sector so exposed to sanctions?
Because energy and commodities are a major source of revenue for some countries, and sanctions often target them directly.
What is a price cap?
It is a measure that allows some services, such as transport and insurance, only if the goods are sold below a set price.
Is it enough to check the seller?
No. The origin of the goods, the vessels, the banks and the owners of the counterparties should be checked too.
The program can make mistakes. The final responsibility for compliance stays with your company. Unicorn Intelligence is an information tool. Decisions and legal obligations, including sanctions compliance, due diligence and tender participation, remain with the customer.
Unicorn Intelligence checks your clients and suppliers against the sanctions lists every day.