13/04/2022

Restrictive measures against individuals

The Council adopted restrictive measures against an additional 217 individuals. These include Russian high-net-worth individuals, high-ranking Kremlin officials, individuals responsible for disinformation and information manipulation, as well as family members of previously listed individuals.

These 217 individuals have been added to the list of sanctioned natural persons under Regulation (EU) No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. The restrictive measures include:

  • the freezing of funds and economic resources belonging to, owned, held or controlled by these listed individuals;
  • the prohibition to make funds or economic resources available, directly or indirectly, to or for the benefit of these listed individuals; and
  • a travel ban preventing listed individuals from entering or transiting through EU territory.

As of 8 April 2022, restrictive measures adopted in response to the conflict in Ukraine target a total of 1,091 listed individuals.

Restrictive measures against entities

The Council adopted restrictive measures against an additional 18 entities, which include:

  • 4 Russian banks: Otkritie FC Bank, Novikombank, Sovcombank and VTB Bank;
  • 13 entities active in the military and defence sectors; and
  • 1 state-owned entity active in the transport sector.

These entities have been added to the list of sanctioned entities under Regulation (EU) No 269/2014 of 17 March 2014. The restrictive measures applicable to the listed entities include a freeze of their funds and economic resources, as well as a ban on making funds or economic resources available to them, in the same way that these measures apply to individuals.

As of 8 April 2022, restrictive measures adopted in response to the conflict in Ukraine target a total of 80 entities.

Restrictive measures in the banking and financial sectors

The Council amended and adopted restrictive measures in the banking and financial sectors, which include:

  • The prohibition to provide support, financing or any other benefit under an EU, Euratom or Member State national programme and contracts within the meaning of Regulation (EU, Euratom) No 2018/1046, to any entity established in Russia with more than 50% public ownership or public control.
  • The prohibition to provide crypto-asset wallet, account or custody services to Russian nationals, individuals residing in Russia or entities established in Russia, if the total value of crypto-assets per wallet, account or custody provider exceeds €10,000.
  • The extension of the prohibition to sell euro-denominated transferable securities issued after 12 April 2022 (or units in collective investment undertakings providing exposure to such securities) to Russian nationals, individuals residing in Russia or entities established in Russia, to now include transferable securities denominated in any official currency of an EU Member State.
  • The extension of the prohibition to sell, supply, transfer or export euro-denominated banknotes to Russia, any individual or entity in Russia or for use in Russia, to now include banknotes denominated in any official currency of an EU Member State.
  • The prohibition:

    • to register, provide a registered office, business or administrative address as well as management services to a trust (or any similar legal arrangement) having as a trustor or a beneficiary: Russian nationals or individuals residing in Russia, entities established in Russia, or any individuals and entities falling under the scope of the newly inserted Article 5m of Regulation (EU) No 833/2014; and
    • as of 10 May 2022, to act as (or arrange for another person to act as) a trustee, nominee shareholder, director, secretary or a similar position for a trust (or similar legal arrangement) mentioned above.

Restrictive measures in other sectors of the economy

The Council adopted new restrictive measures in other sectors of the economy, which include:

  • Measures affecting trade between Russia and the European Union.

    • The prohibition to purchase, import or transfer goods (listed in Annex XXI of Regulation (EU) No 833/2014) into the EU if they originate in Russia or are exported from Russia. This list includes a wide variety of goods such as seafood, fertilisers, wood and aluminium. It is also prohibited to provide financing or financial assistance, technical assistance, brokering services or other services relating to these goods.
    • The prohibition to purchase, import or transfer coal and other solid fossil fuels (listed in Annex XXII of Regulation (EU) No 833/2014) into the EU if they originate from Russia or are exported from Russia. It is also prohibited to provide financing or financial assistance, technical assistance, brokering services or other services relating to these goods.
    • The prohibition to sell, supply, transfer or export goods (listed in Annex XXIII of Regulation (EU) No 833/2014) to any individual or entity in Russia or for use in Russia. This list includes a wide variety of goods such as jet fuel, precious metals, chemical substances and photography material. It is also prohibited to provide financing or financial assistance, technical assistance, brokering services or other services relating to these goods.

  • The prohibition for Russian-established road transport undertakings to transport or transit goods by road within the EU. As opposed to the measures described above, the goods subject to this prohibition are not listed in an annex and must therefore be considered to include all goods.
  • The prohibition, after 16 April 2022, to provide vessels registered under the flag of Russia access to ports located in the EU, including those that have changed their Russian flag or registration to the flag or register of any other state after 24 February 2022.
  • The prohibition for entities established in Russia to participate in public procurement procedures in the EU. More specifically, it is prohibited to award or continue the execution of any public or concession contract falling under the scope of the public procurement directives to or with Russian individuals or entities established in Russia.

Our expertise

Contact our experts Philippe-Emmanuel Partsch, Marianne Brésart and Björn ten Seldam in the EU Financial & Competition Law practice for assistance understanding these measures and how they could potentially impact your activities.

This communication, which we believe may be of interest to our clients and friends of Arendt, is for general information only. It is not a full analysis of the matters presented and should not be relied upon as legal advice.


Definitions

Funds: financial assets and benefits of every kind, including, but not limited to: (i) cash, cheques, claims on money, drafts, money orders and other payment instruments; (ii) deposits with financial institutions or other entities, balances on accounts, debts and debt obligations; (iii) publicly and privately traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts; (iv) interest, dividends or other income on or value accruing from or generated by assets; (v) credit, right of set-off, guarantees, performance bonds or other financial commitments; (vi) letters of credit, bills of lading, bills of sale and (vii) documents showing evidence of an interest in funds or financial resources – Article 1 (g) of Regulation (EU) 269/2014

Economic resources: assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but may be used to obtain funds, goods or services – Article 1 (d) of Regulation (EU) 269/2014

Contacts

Philippe-Emmanuel Partsch

Partner

EU Financial & Competition Law

Marianne Brésart

Senior Associate

EU Financial & Competition Law

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