Not too long after the US Executive Order blocking property of certain persons contributing to the conflict in Somalia was issued, EU have on the 28th April released their EU Council regulation 356/2010 with almost similar objective.
This EU Council Regulation 356/2010 adopts similar provisions to the US Executive Order prohibiting payments to certain parties linked with Somalia and is directly applicable, in other words it will apply in EU states without the need for any national implementation.
A copy of the UK Treasury notice can be found here – http://www.hm-treasury.gov.uk/d/council_regulation_eu_356_260410.pdf
We believe that the impact of this legislation will mean that the practical effects on the shipping industry will have even wider effect that what we have had mentioned in our previous write-up entitled, “Piracy update – Effect of US Executive Order on ransom payment“.
There is a provision for obtaining a licence or exemption to make certain payments, although there are restrictions of course on the purpose of any payment being made, which mean that careful consideration will need to be given on a case by case basis.