As widely anticipated following recent announcements by the Council of the EU, a new regulation introducing sanctions against specific sectors of the Russian economy entered into force on 1 August 2014.
Council Regulation (EU) No. 833/2014 (“the Regulation”) has been introduced as the EU considers it appropriate to apply additional restrictive measures 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.
The Regulation prohibits dealings in transferable securities with maturity exceeding 90 days issued after 1 August 2014 if issued by a state-owned Russian bank.
It has also been prohibited to trade in dual-use goods and technology destined for military use, or for a military end-user in Russia. Dual-use goods and technology means certain proscribed items which have civilian uses but which may also have military applications. Such supplies may be possible where an authorisation is obtained from the relevant authorities in the relevant EU Member State. Performance of contracts pre-dating 1 August 2014 is permitted subject to authorisation. There are similar prohibitions and restrictions in relation to armaments.
Similarly, the Regulation restricts trade in certain items used in the oil industry, and prohibits trade in certain items associated with deep water oil exploration and production, Arctic oil exploration and production or shale oil projects in Russia. Performance of contracts pre-dating 1 August 2014 is permitted subject to authorisation. Further, trade in the items listed is only possible subject to authorisation.