EU Regulation 1351/2014
On 18 December 2014 the European Union passed Regulation 1351/2014, which with effect from 20 December 2014, widens the restrictive measures set out in Regulation 692/2014 of 23 June 2014.
Regulation 692/2014 had introduced trade restrictions in respect of goods originating in Crimea or Sevastopol. Regulation 825/2014 of 30 June 2014 subsequently amended and widened those prohibitions. Regulation 1351 further widens those restrictions and introduces others, some of which impact the shipping industry.
The restrictions applicable under Regulation 692/2014, as amended, now in place fall largely under three areas:
- Investments and related activities;
- Sale, supply, transfer and export of certain goods and technologies including those related to transport, telecommunications, energy and the exploration of oil, gas and mineral resources in Crimea and Sevastopol;
- Tourism, including the provision of cruise services to Crimea and Sevastopol;
Article 2a
The new measures prohibit a broad range of investment in Crimea or Sevastopol, whereas previously the restrictions applied only to certain economic sectors.
It is prohibited to:
(a) acquire any new or extend any existing participation in ownership of real estate or control an entity located in Crimea or Sevastopol, including the acquisition in full of such entity or the acquisition of shares, and other securities of a participating nature of such entity;
(b) grant or be part of any arrangement to grant any loan or credit or otherwise provide financing, including equity capital, to an entity in Crimea or Sevastopol, or for the documented purpose of financing such entity;
(c) create any joint venture in Crimea or Sevastopol or with an entity in Crimea or Sevastopol;
(d) provide investment services directly related to the activities referred to in points (a) to (d).
The above prohibitions do not apply to the conduct of legitimate business with entities outside Crimea or Sevastopol where the related investments are not destined to entities in Crimea or Sevastopol.
Article 2b
It is prohibited to sell, supply, transfer, or export certain goods and technology (as extensively listed in Annex II) used in the following specified sectors:
- Transport;
- Telecommunications;
- Energy;
- Prospection, exploration and production of oil, gas and mineral resources,
to persons in Crimea or Sevastopol or for use in Crimea or Sevastopol.
Restrictions have also been imposed in relation to the provision of technical assistance, brokering services, financing and financial assistance relating to such goods/technology to persons in Crimea or Sevastopol or for use in Crimea or Sevastopol.
Article 2c
There is now a general prohibition against the provision of technical assistance, or brokering, construction or engineering services directly relating to infrastructure in Crimea or Sevastopol in the sectors referred to under Article 2b, independently of the origin of the goods and technology.
Article 2d
It is prohibited for any ship providing cruise services, to enter into or call at any of the seven ports situated in the Crimean Peninsula as listed in Annex III, namely Sevastopol, Kerch, Yalta, Theodosia, Evpatoria, Chernomorsk, and Kamysh-Burun. This prohibition applies to ships flying the flag of a Member State or any ship owned and under the operational control of an EU ship owner or any ship over which an EU operator assumes overall responsibility as regards its operation. The prohibitions do not apply when a ship enters or calls at one of the listed ports for reasons of maritime safety in cases of emergency.
In each case, there is a carve out allowing for the execution of contractual obligations under a contract concluded before 20 December 2014, although in the case of Articles 2b and 2c, the grace period will expire on 21 March 2015.
Coupled with EU Regulation 692/2014 of 23 June 2014, which gave effect to trade restrictions on import into the EU of goods originating in Crimea or Sevastopol, and the impact of asset freeze measures against a number of individuals and entities in Ukraine and Russia, there is now a wide-ranging ban on trade involving Crimea and Sevastopol. Members are reminded of the need to exercise caution when considering trade involving these territories.
Copies of the above mentioned Regulations can be downloaded from the links set out below.
