EU Sanctions Ivory Coast
EU COUNCIL REGULATION 330/2011 - 6 APRIL 2011
The European Union has taken steps to tighten sanctions measures against the Gbagbo government in Cote D'Ivoire.
Council Regulation 330/2011 was published in the Official Journal of the European Union on 7th April and comes into immediate effect in all Member States. This Regulation:
- adds to the list of those subject to asset freezes - one additional individual has been added to the list of those subject to asset freezes and travel ban.
- provides additional grounds on which competent authorities of Member States may licence derogations - competent authorities may now authorise release of or making available frozen funds or economic resources necessary for humanitarian purposes (subject to advance notification to other Member States and the Commission), and competent authorities may also authorise release of funds from a designated person to an undesignated person or entity if the obligation to pay arose prior to the designated person becoming designated, (again subject to advance notification to other Member States and the Commission at least two weeks prior to the authorisation being granted).
- includes additional restrictive measures relating to bonds, securities and loans - it is now prohibited to purchase, broker or assist in the issue of bonds or securities issued or guaranteed by the government of Mr Laurent Gbabgo as well as by any persons or entities acting on its behalf or under its authority, and it is also prohibited to provide loans in any form to the Gbagbo government or to persons or entities acting on its behalf or under its authority or to entities that it owns or controls.
The tightening of sanctions measures is designed to pressure Mr Gbagbo into vacating his position and giving recognition to the results of the presidential elections of November 2010 in which Mr Gbagbo was defeated.
A copy of the Regulation and Financial Sanctions Notice issued by HM Treasury can be downloaded from the links below.
PARTIAL LIFTING OF EU SANCTIONS - 12 APRIL 2011
As reported in Risk Alert 24 the EU had in January 2011 sought to widen the scope of sanctions that had previously been implemented in the EU under Regulation 560/2005 to give effect to UN Security Council Resolution 1572 of 15th November 2004.
The EU sanctions that came into effect in all member states of the EU on 14th January 2011 pursuant to Regulation 25/2011 imposed asset freezes on named persons, entities and bodies considered to be obstructing democracy and interfering with the proper outcome of elections in the Ivory Coast.
Included in this list of designated parties set out at Annex 1 of Regulation 25/2011 were the ports of Abidjan and San Pedro. Members were warned that the use of those ports could contravene the asset freeze to the extent that such use would involve payment to the port authorities. The inclusion of anti-avoidance provisions at Article 2 meant that making payments to the ports through intermediaries such as port agents was also prohibited. Pursuant to Article 13, the injunction to freeze the assets of designated parties applies to all EU nationals wherever located, to persons, entities and bodies incorporated or constituted under the law of an EU state, to any persons, entities and bodies wherever located in respect of business done in whole or in part in the EU, and to vessels registered in the EU.
Following the passing of EU Council Implementing Regulation 348/2011, and with effect from 12th April 2011, the prohibition on making funds and economic resources available to the ports of Abidjan and San Pedro, and to two other entities, SIR (Ivorian Refining Company) and CGFCC (Coffee and Cocoa Trade Management Committee) is lifted.
Shipowners and operators impacted by Regulation 25/2011 are now free to pay port dues and other port expenses in order to use the ports of Abidjan and San Pedro, and to trade with SIR and CGFCC.
Various other entities, notably three banks, and various State-controlled trading houses, remain subject to the asset freeze, which includes a prohibition on making available, whether directly or indirectly, funds or economic resources, to those listed entities.
The applicable definition of “economic resources “ in Article 1 of Regulation 560/2005 is "assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services".
Further, ‘freezing of economic resources’ means “preventing the use of economic resources to obtain funds, goods or services in any way, including, but not limited to, by selling, hiring or mortgaging them.”
Members trading with Cote d’Ivoire and Ivorian entities should therefore continue to obtain as much information as possible about their business counterparties to ensure that they are not connected, directly or indirectly to any of the designated entities and that transactions involving such counterparties do not constitute a breach of the asset freeze.
FURTHER EASING OF EU SANCTIONS 29 APRIL 2011
Through the implementation of Council Implementing Regulation 419/2011 of 29th April 2011, and with immediate effect in all EU member states, the restrictive measures (consisting of the freezing of funds and economic resources) adopted pursuant to EU regulations 560/2005 and 25/2011 have been eased in relation to an oil company and five banks:
PETROCI (National Petroleum Operations Company of Cote d'Ivoire)
BNI (National Investment Bank)
BFA (Agricultural Credit Bank)
Versus Bank
Caisse d'Epargne de Cote d'Ivoire (Savings Bank of Cote d'Ivoire)
Banque de l'Habitat de Cote d'Ivoire (BHCI) (Housing Bank of Cote d'Ivoire)
This follows closely on the heels of the easing of restrictions on the country's cocoa industry by the lifting of restrictions on the ports of Abidjan and San Pedro, and two companies, SIR (Ivorian Refining Company) and CGFCC (Coffee and Cocoa Trade Management Committee) on 12th April 2011. The EU has said that the purpose of the latest steps is to support the country's economic recovery.
A copy of Implementing Regulation 419/2011 can be found below.
EU IMPLEMENTING REGULATION 623/2011 - 27 JUNE 2011
Through the implementation of Implementing Regulation 623/2011 on 27th June 2011, the EU has deleted the names of three further entities from the list of persons and entities subject to the restrictive measures originating under EU Regulation 560/2005. The latest parties to be removed from the list are:
APROCANCI (Cote D'Ivoire Association of Natural Rubber Producers)
SOGEPE (National Electricity Management)
RTI (Ivorian Radio and Television)
A copy of EU Regulation 623/2011, and of the corresponding HMT Financial Sanctions Notification, can be found below.
A consolidated list of those entities that remain subject to EU sanctions can be found through the following HM Treasury link http://www.hm-treasury.gov.uk/d/ivory_coast.htm
EU IMPLEMENTING REGULATION 949/2011 22 SEPTEMBER 2011
With effect from 22 September 2011, EU asset freezing measures against 13 Ivorian individuals have been lifted. The measures still apply against 108 other individuals, and it remains the case that EU persons are prohibited from making funds and economic resources available, whether directly or indirectly, to or for the benefit of those individuals. Members should therefore continue to carry out due diligence on their Ivorian business counterparties to ensure that they are not owned or controlled by any of the designated individuals.
Copies of EU Regulation 949/2011 and an associated HMT Financial Sanctions Notice can be downloaded below.
EU IMPLEMENTING REGULATION 113/2012 10 FEBRUARY 2012
With the publication of Council Implementing Regulation 113/2012 of 10 February 2012, and with effect from 11 February 2012, the Council of the European Union has removed 30 individuals from the list of those subject to EU asset-freezing measures imposed under Article 2 of EU Regulation 560/2005. A list of the 78 individuals who continue to be subject to the EU asset-freezing measures can be downloaded from the following link on the UK Treasury website: http://www.hm-treasury.gov.uk/d/ivory_coast.htm.
Copies of EU Regulation 113/2012 and an associated HMT Financial Sanctions Notice can be downloaded from the links below.
