EU Regulation 833
With effect from 1 August 2014, the EU will apply additional restrictive measures in respect of Russia with a view to increasing the costs of Russia's actions to undermine Ukraine's territorial integrity, sovereignty and independence, and in order to promote a peaceful settlement of the crisis.
A brief summary of the new restrictions is set out below:
Article 2 - ban on the supply of dual use goods and technology (whether or not originating in the EU) to any natural or legal person, entity or body in Russia or for use in Russia, if those items are or may be intended, in their entirety or in part, for military end use or for a military end user.
Competent authorities may grant an authorisation where the export concerns the execution of an obligation arising from a contract or an agreement concluded before 1 August 2014.
The relevant products are those as listed in Annex 1 of EU Regulation 428/2009.
Article 3 - prior authorisation shall be required for the sale, supply, transfer or export, directly or indirectly, of technologies as listed in Annex II, whether or not originating in the EU, to any natural or legal person, entity or body in Russia or in any other country, if such equipment or technology is for use in Russia.
Annex II includes technologies suited to the oil industry for use in deep water oil exploration and production, Arctic oil exploration and production, or shale oil projects in Russia.
Competent authorities may grant an authorisation where the export concerns the execution of an obligation arising from a contract or an agreement concluded before 1 August 2014.
Article 4 – it is prohibited to provide, directly or indirectly:
- technical assistance related to the goods and technology listed in the Common Military List, or related to the provision, manufacture, maintenance and use of goods included in that list, to any natural or legal person, entity or body in Russia or for use in Russia;
- financing or financial assistance related to the goods and technology listed in the Common Military List, including in particular grants, loans and export credit insurance or guarantee, for any sale, supply, transfer or export of such items, or for any provision of related technical assistance to any natural or legal person, entity or body in Russia or for use in Russia;
- technical assistance or brokering services related to dual-use goods and technology, or related to the provision, manufacture, maintenance and use of such goods or technology, to any natural or legal person, entity or body in Russia or for use in Russia, if the items are or may be intended, in their entirety or in part, for military use or for a military end-user;
- financing or financial assistance related to the dual-use goods and technology, including in particular grants, loans and export credit insurance, for any sale, supply, transfer or export of such items, or for any provision of related technical assistance to any natural or legal person, entity or body in Russia or for use in Russia, if the items are or may be intended, in their entirety or in part, for military use or for a military end-user.
These prohibitions do not apply in respect of the execution of an obligation arising from a contract or an agreement concluded before 1 August 2014, and to the provision of assistance necessary to the maintenance and safety of existing capabilities within the EU.
Article 5 - a ban on directly or indirectly purchasing, selling, providing brokering or assistance in the issuance of, or otherwise dealing with certain transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 1 August 2014.
The ban applies to relevant securities and money-market instruments issued by:
(a) a major credit institution or other major institution having an explicit mandate to promote competitiveness of the Russian economy, its diversification and encouragement of investment, established in Russia with over 50 % public ownership or control as of 1 August 2014, as listed in Annex III; or
(b) a legal person, entity or body established outside the Union whose proprietary rights are owned for more than 50 % by an entity listed in Annex III; or
(c)a legal person, entity or body acting on behalf or at the direction of an entity referred to in point (b) of this paragraph or listed in Annex III.
Annex III lists the following Russian banks:
- SBERBANK
- VTB BANK
- GAZPROMBANK
- VNESHECONOMBANK (VEB)
- ROSSELKHOZBANK
A copy of the Regulation can be downloaded from the link set out below.
