Details of EU's 'Tier 3' Russian sanctions published
On 25 July 2014 the European Union expanded its Ukraine-related targeted sanctions, which impose EU-wide asset freezes and travel bans. Maya Lester of Brick Court Chambers examines the lengthening list.
Yesterday we reported on the people and companies added to the EU's targeted sanctions against Russia which impose travel bans and asset freezes, and the new restrictions relating to Crimea and Sevastopol. The EU has now published in the Official Journal a new Decision and Regulation setting out the other new restrictions, often referred to as "tier 3″ sanctions.
The restrictions (in brief summary) are on:
- The purchase and sale of bonds, equity and other financial instruments, issued after 1 August 2014, by major credit institutions or finance development institutions established in Russia with over 50% public ownership or control, or by people or entities more than 50% owned by listed people / entities.
- The sale, supply, import etc of arms and related material to Russia from the EU / by EU nationals.
- The direct or indirect sale, supply, transfer, or export of dual-use goods and technology for military use or military end user in Russia (or related financing / assistance).
- The sale, supply or export of certain types of oil exploration technologies. There rare prior authorisation requirements for the sale or supply of technologies listed in an annex to the new Regulation.
There are provisions for the Member States and European Commission to share information about authorisations granted, violations and enforcement problems, and judgments handed down by national courts. It is for Member States to lay down penalties for infringements.
The new measures (see the new Decision and Regulation which are on the "sanctions in force" section of this blog) set out the details of these restrictions, which also contain provisions relating to contractual claims affected by these measures. They are to be reviewed by 31 October 2014, "in particular taking into account their effect and the measures adopted by third States", and apply until 31 July 2015. The House of Commons Library has published a useful note on the development of sanctions against Russia / Ukraine.
This article first appeared on European Sanctions Law & Practice (http://europeansanctions.com/), a blog by Maya Lester (+44 20 7379 3550, firstname.lastname@example.org), a barrister at Brick Court Chambers, and Michael O'Kane (+44 (0) 20 7822 7777 email@example.com), head of Business Crime at Peters & Peters.