December 23, 2019

U.S. Extends License Allowing Wind-Down Transactions Involving Sanctioned Subsidiary of Chinese Shipping Giant

By Edmund Xu

The U.S. Treasury Department on Thursday extended a general license authorizing certain transactions involving a subsidiary of a Chinese shipping conglomerate.

The license allows, until Feb. 4, 2020, activities necessary to the maintenance or wind down of transactions with the sanctioned COSCO Shipping Tanker (Dalian) Co., Ltd. and its majority-owned subsidiaries. The original general license, issued on Oct. 24, was due to expire Friday.

The U.S. sanctioned two Dalian-based subsidiaries of Chinese shipping conglomerate Cosco Shipping Corporation Ltd. (COSCO) in September, rattling global oil transport and causing many companies around the world to halt business with all COSCO entities in order to seek clarification. The parent company COSCO was not sanctioned in the U.S. action.

Kharon research

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