EU Regulation 825
On 23 June 2014, in response to the annexation of Crimea and Sevastopol by Russia, the European Union published Regulation 692/2014, introducing trade sanctions (set out in Article 2 of the Regulation) in respect of goods originating in Crimea or Sevastopol and on the provision, directly or indirectly, of financing or financial assistance, as well as insurance and reinsurance, related to the import of such goods.
Pursuant to Regulation 825/2014, and with effect from 31 July 2014, the prohibitions as set out in Article 2 of regulation 692/2014 are widened.
New Article 2a prohibits:
- the granting of any financial loan or credit and the creation of any joint venture relating to; and
- the acquisition (including acquisition of shares), or extension of participation in, enterprises established in Crimea or Sevastopol engaged in
- the creation, acquisition or development of infrastructure in the transport, telecommunications or energy sectors in Crimea or Sevastopol;
- the exploitation of oil gas or mineral resources in Crimea or Sevastopol.
“Mineral Resources” are listed in Annex II of Regulation 825/2014.
“Exploitation” and “Refining” are also defined terms.
New Article 2b prohibits the provision, directly or indirectly, of technical assistance and brokering services related to the investment activities referred to in Article 2a.
New Article 2c prohibits:
- the sale, supply, transfer, or export, directly or indirectly, of key equipment and technology as listed in Annex III to any natural or legal person, entity or body in Crimea or Sevastopol or for use in Crimea or Sevastopol.
- the provision, directly or indirectly, of technical assistance or brokering services related to the key equipment and technology listed in Annex III, or related to the provision, manufacture, maintenance and use of items listed in Annex III to any natural or legal person, entity or body in Crimea or Sevastopol or for use in Crimea or Sevastopol; and
- provision, directly or indirectly, of financing or financial assistance related to the key equipment and technology listed in Annex III to any natural or legal person, entity or body in Crimea or Sevastopol or for use in Crimea or Sevastopol.
These prohibitions do not apply to the execution, until 28 October 2014, of transactions required by a trade contract concluded before 30 July 2014 concerning key equipment or technology as listed in Annex III or by ancillary contracts necessary for the execution of such contracts provided that the natural or legal person, entity or body seeking to engage in such transactions, or to provide assistance to such transactions, has notified, at least 10 working days in advance, the transaction or assistance to the competent authority of the Member State in which it is established.
Annex III includes key equipment and technology related to the creation, acquisition or development of infrastructure in the following sectors: (a) transport; (b) telecommunications; (c) energy; (d) the exploitation of oil, gas and mineral reserves in Crimea and Sevastopol. The listed products include certain types of ships and associated equipment including:
- mobile drilling derricks;
- floating or submersible drilling or production platforms;
- sea-going light vessels, fire-floats, floating cranes and other vessels, the navigability of which is subsidiary to their main function (excl. dredgers, floating or submersible drilling or production platforms; fishing vessels and warships)
A copy of this Regulation can be downloaded from the link set out below.
