Russia Regime
- Council Regulation (EU) 2022/1903 of 6 October 2022 amending Regulation (EU) 2022/263 concerning restrictive measures in response to the recognition of the non-government controlled areas of the Donetsk and Luhansk oblasts of Ukraine and the ordering of Russian armed forces into those areas
The Council of the European Union on 6 October 2022 adopted Decision (CFSP) 2022/1908, amended the title of Decision (CFSP) 2022/266 and extended the geographical scope of the restrictions contained therein to cover all the non-government-controlled areas.
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- Council Regulation (EU) 2022/1904 of 6 October 20222 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising situation in Ukraine
The Council of the European Union on 6 October 2022 adopted Decision (CFSP) 2022/1909 in response to the Russian Federation’s further aggression against Ukraine and the organisation of illegal ‘referenda’ in the non-government controlled areas that are currently occupied by the Russian Federation.
Decision (CFSP) 2022/1909 extends the list of restricted items which might contribute to the Russian Federation’s military and technological enhancement. Decision (CFSP) 2022/ 1909 prohibits goods subject to prohibition that are covered by Regulation (EU) No 258/2012. In this context, Regulation (EU) No 833/ 2014 is to be treated as lex specialis in the event of a conflict and takes precedence over Regulation (EU) 2019/125.
The European Union is committed to avoiding threats to nuclear safety and security. Thus, none of the measures in this Regulation seek to undermine the safety of civil nuclear capabilities or civil nuclear cooperation.
In view of mitigating adverse consequences on energy supply to third countries and reducing prices driven by market conditions, Decision (CFSP) 2022/1909 introduces an exemption from the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate or are exported from Russia – purchased at or below a pre-established price cap agreed by the Price Cap Coalition.
The exemption from the prohibition to provide maritime services is conditional upon the Council introducing the price cap into Annex XI to Decision 2014/512/CFSP. In deciding whether to introduce that price cap, the Council will take into account the effectiveness of the measure in terms of its expected results, international adherence to and informal alignment with the price cap mechanism, and its potential impact on the Union and its Member States. The Price cap should apply to the maritime transport to third countries of crude oil and certain petroleum products and to the provision of related services. certain Member States to continue importing crude oil and petroleum products from Russia due to their specific situation or in the event that the supply of crude oil by pipeline from Russia is interrupted for reasons outside their control. Additionally, specific projects which are essential for the energy security of certain third countries may be exempted from the price cap under certain circumstances.
In addition to the existing prohibitions related to the provision of services for the maritime transport of crude oil and certain petroleum products to third countries, Decision (CFSP) 2022/1909 further prohibits the maritime transport of such goods to third countries. That prohibition should not be applicable unless and until the Council adopts the necessary measures making the price cap applicable.
Decision (CFSP) 2022/1909 adds to the list of Russian State-owned or controlled entities that are subject to the transaction ban that prohibits the prohibition of any sort of economically valuable benefit the Russian Maritime Register of Shipping. It extends the port access and lock ban in the territory of the Union to vessels certified by the Russian Maritime Register of Shipping.
Decision (CFSP) 2022/1909 removes the threshold for the existing prohibition on the provision of crypto-asset wallet, account or custody services to Russian persons and residents, thereby banning the provision of such services regardless of the total value of such crypto-assets.
Decision (CFSP) 2022/1909 furthermore extends the existing prohibition of the provision of certain services to the Russian Federation by banning the provision of architectural and engineering services, as well as of IT consultancy services and legal advisory services. In line with the Central Products Classification as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No 77, CPC prov., 1991, ‘architectural and engineering services’ covers both architectural and engineering services as well as integrated engineering services, urban planning and landscape architectural services and engineering-related scientific and technical consulting services. The provision of technical assistance related to goods exported to Russia remains allowed, provided that the sale, supply, transfer or export of such goods is not prohibited under this Regulation at the time at which such technical assistance is provided. ‘IT consultancy services’ covers consultancy services related to the installation of computer hardware, including assistance services to the clients in the installation of computer hardware (i.e. physical equipment) and computer networks, and software implementation services, including all services involving consultancy services on, development of and implementation of software. ‘Legal advisory services’ covers: the provision of legal advice to customers in non-contentious matters, including commercial transactions, involving the application or interpretation of law; participation with or on behalf of clients in commercial transactions, negotiations and other dealings with third parties; and preparation, execution and verification of legal documents. ‘Legal advisory services’ does not include any representation, advice, preparation of documents or verification of documents in the context of legal representation services, namely in matters or proceedings before administrative agencies, courts or other duly constituted official tribunals, or in arbitral or mediation proceedings.
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- Council Regulation (EU) 2022/1905 of 6 October 2022 amending Regulation (EU) NO 269/ 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
The Council of the European Union on 6 October 2022 amended Decision 2014/145/CFSP, which introduced a further criterion for the listing of natural or legal persons, entities or bodies subject to asset freeze and the prohibition to make funds and economic resources available to designated persons and entities.
Decision (CFSP) 2022/1907 also introduced further derogations from the asset freeze and the prohibition to make funds and economic resources available to certain listed entities and introduced additional provisions regarding Member States’ obligations concerning the granting of derogations.
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- Council Implementing Regulation (EU) 2022/ 1906 of 6 October 2022 implementing Regulation (EU) No 269/ 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
The Council of the European Union on 6 October 2022 considered that 30 persons and 7 entities responsible for actions undermining or threatening the territorial integrity, sovereignty, and independence of Ukraine should be added to the list of natural and legal persons, entities and bodies subject to restrictive measures set out in Annex I to Regulation (EU) No 269/ 2014.
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- Council Decision (CFSP) 2022/1907 of 6 October 2022 amending Decision 2014/ 145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty, and independence of Ukraine
The Council of the European Union on 6 October 2022 considered that 30 persons and 7 entities responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine should be added to the list of persons, entities and bodies subject to restrictive measures set out in Annex to Decision 2014/145/CFSP.
The Council deems it necessary to introduce a further listing criterion specifically targeting the facilitating of infringements of the prohibition against circumvention of restrictive measures that contribute to the destabilising of Ukraine.
Additionally, the Council introduce a derogation from the asset freeze and the prohibition to make funds and economic resource available with respect to two listed entities, as well as to include additional provisions on Member States’ obligations concerning the granting of derogations.
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- Council Decision (CFSP) 2022/ 1908 of 6 October 2022 amending Decision (CFSP) 2022/266 concerning restrictive measures in response to the recognition of the non-government controlled areas of the Donetsk and Luhansk oblasts of Ukraine and the ordering of Russian armed forces in those areas
The Council of the European Union on 6 October 2022 considers that the title of Decision (CFSP) 2022/266 should be amended and the geographical scope of the restrictions contained therein should be extended to cover all the non-government controlled areas of Ukraine.
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- Council Decision (CFSP) 2022/1909 of 6 October 2022 amending Decision 2014/ 512/ CFSP concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine
The Council of the European Union on 6 October 2022 deemed appropriate to introduce further restrictive measures, in particular the prohibition to engage in any transaction with certain Russian State-owned or State-controlled legal persons, entities or bodies by including a ban on Union nationals to hold any posts on the governing bodies of those legal persons.
It is appropriate to enable the Member States to affect such withdrawals and extend the port access and lock ban in the territory of the Union to vessels certified by the Russian Maritime Register of Shipping. Moreover, the threshold for the existing prohibition on the provision of crypto-asset wallet, account or custody services to Russian persons and residents shall be removed.
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Please be reminded that all EU/UN sanctions are directly applicable under Maltese law under the National Interest (Enabling Powers) Act, cap 365 of the Laws of Malta as linked here.
Should any of your clients be a person or entity who is listed under UN/EU or national sanctions or who is directly or indirectly owned or controlled by a listed person or entity, the freezing measures mentioned under article 17 of the Act apply.
The Sanctions Monitoring Board is to be informed immediately of the actions that have been taken in relation to the assets of such listed persons.
The Sanctions Monitoring Board may be contacted on sanctions.mfea@gov.mt on any issue relating to sanctions.
Please find below links to the:
EU Financial Sanctions Database
Consolidated UN Sanctions List
EU Sanctions Map
Sanctions Monitoring Board
