LONDON ARBITRATION - US SANCTIONS - OFAC LICENSE TO SELL CARGO - BREACH OF SANCTIONS – APPEAL TO ENGLISH HIGH COURT UNDER SECTION 44 OF THE ARBITRATION ACT 1996
Charterers entered into a charterparty for a vessel carrying naphtha, but were added to the US OFAC sanctions list the same day, causing the cargo to become subject to US sanctions. Owners, fearing prosecution due to their US connections, terminated the charterparty and obtained an OFAC license to sell the cargo and hold proceeds in a blocked US account. Arbitration was initiated in London, and both parties approached the English High Court for directions on how the sale proceeds should be handled.