Libyan ports caught in freeze

The ports concerned include Tripoli, Al Khoms, Brega, Ras Lanuf, Zawia and Zuwara. Clearly, the intention is to starve those ports controlled by the present Libyan government of any international trade.

It’s clear that the freezing order does not just extend to those on the blacklist: Mr Reynardson of Birch Reynardson explains, “The financial sector and other persons should bear in mind that Muammar Qadhafi and his family have considerable control over the Libyan state and its enterprises in deciding how to conduct proper due diligence over any transactions involving Libyan state assets.”

In practice, once the regulation comes into force (which will happen shortly), it will not be possible to pay any port dues or other fees to these ports for any reason. Contravention is punishable by a prison term of up to two years or a fine.

HM Treasury has said that it will be able to authorise exemptions from the asset freeze for contracts which were entered into prior to the Libyan Port Regulation coming into force, until 15 July 2011.

However, it is important to note that this exemption does not apply to contracts relating to oil,

gas and refined products. It should also be noted that the exemption only applies to payments to port authorities and all other elements of the existing sanctions apply.