On
The new package introduces additional asset freeze measures, as well as new prohibitions on the provision of services and on exports to
The 11th Sanctions Package also introduces additional grounds for authorisations to release certain frozen funds or economic resources belonging to the designated persons, as well as to undertake certain, otherwise prohibited activities.
1. New asset freeze measures and prohibitions on trade in goods and services
(a) Asset freeze measures and authorizations
The 11th Sanctions Package results in the addition of 71 individuals and 33 entities to the list of individuals and entities subject to the
The 11th Sanctions Package also introduces new grounds for authorisations to release certain frozen funds or economic resources belonging to designated persons, among others:
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for the conversion by nationals or residents of member states or EU entities of a depositary receipt with Russian underlying security held with the
- for the release of funds or economic resources necessary for the setting up, certification and evaluation of a firewall which removes the control over the assets of a non-listed person owned or controlled by a listed person, and which ensures that no further funds or economic resources accrue for the benefit of the listed person
- for authorization relates to the release of frozen funds or economic resources belonging to
VTB Bank and theRussian National Settlement Depository , as well as the making available of funds and economic resources to them, necessary for the disposal or the transfer of securities by an entity in the Union currently or previously controlled byVTB Bank - for the provision of auditing services, engineering services, legal advisory services and technical testing and analysis services for the operation and maintenance of the
Caspian Pipeline Consortium - for the provision of legal services required for the completion of a sale or transfer of proprietary rights directly or indirectly by a Russian entity in an EU entity
(b) Export Restrictions
The new sanctions package prohibits the sale, licensing, transfer or the granting of rights to access or re-use intellectual property rights or trade secrets related to certain goods and technology subject to export restrictions (e.g., dual-use items, goods suited for use in oil refining and liquefaction of natural gas, for use in aviation or the space industry, or for maritime navigation) to individuals or entities in
The
The 11th Sanctions Package adds 87 new entries to the list of entities for which enhanced export restrictions apply (Annex IV entities) and subjects new items to export prohibitions under Annex VII, including electronic components, semiconductor material, manufacturing and testing equipment for electronic integrated circuits and printed circuit boards, precursors to energetic materials and precursors to chemical weapons, optical components, navigational instruments, metals used in the defence sector and marine equipment. Further export prohibitions are imposed on goods which could contribute to the enhancement of Russian industrial capacities in Annex XXIII.
(c) Import Restrictions
The 11th Sanctions Package prohibits access to Union ports and locks to any vessel that the competent authority has reasonable cause to suspect is in breach of the prohibitions applicable to crude oil and petroleum products. An exemption applies for maritime safety or for lifesaving efforts at sea, and an authorization can be obtained for humanitarian purposes.
A similar prohibition was added for vessels performing ship-to-ship transfers in the exclusive economic zone of a member state or 12 nautical miles from a member state coastline without informing the competent authority at least 48 hours in advance, or illegally interfering, switching off or disabling automatic identification systems, at any point of a voyage to a member state's ports or locks.
Regarding the forthcoming prohibition to import or purchase certain iron and steel products—when processed in a third country incorporating iron and steel products originating in Russia—it has been clarified that, at the moment of importation, importers must provide evidence of the country of origin of the iron and steel inputs used for the processing of the product in a third country.
(d) Prohibition on the provision of services
Regarding the prohibition to supply services to the entities established in
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for the provision of accounting, auditing, including statutory audit, bookkeeping or tax consulting services, or business and management consulting or public relations services, as well as architectural and engineering services, legal advisory services and IT, if necessary to remove the control by a listed person of a non-listed entity
The already existing ground for authorisation for the provision of services necessary for the divestment from
2. Tackling the circumvention of existing measures
In order to address the transhipment of controlled items to
At present, however, the
The 11th Sanctions Package also requires EU economic operators to immediately supply any information which would facilitate the implementation of EU sanctions to the competent authority of the member state where they are resident or located within two weeks of acquiring this information. Before, a similar obligation only existed for asset freeze measures. This new obligation, together with the enhanced cooperation between Member States detailed below, will give national competent authorities ("NCAs") the necessary data to identify and act against violations of EU sanctions, including their circumvention.
3. Increased cooperation between member states
In an attempt to avoid conflicting decisions between NCAs, the 11th Sanctions Package includes measures to enhance cooperation between member states on the granting and denial of authorisations. In particular, EU member states denying an authorisation shall inform other member states, and before granting an authorisation for a transaction that is essentially identical to a transaction subject to a denial in another member state, a member state shall first consult the member state which issued the denial.
Footnotes
1. Council Regulation (EU) 2023/1214 of
2.
3.
Originally published
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