The European Sanctions blog by Maya Lester, Brick Court Chambers & Michael O’Kane, Peters & Peters Solicitors LLP
As foreshadowed, the European Union has today published its new sanctions relating to Russia. They take the form of: (a) expanded criteria for including people and entities on the travel ban / asset freeze list; (b) the addition of 24 people to those lists; and (c) expanded restrictions on dealing with securities issued by certain Russian banks, entities in the military and oil sectors, on the supply of dual-use items to Russia, and on services for deep water, arctic, and shale oil exploration and production.
(1) Expanded listing criteria for inclusion in targeted sanctions
Decision 2014/658/CFSP amends the listing criteria in Decision 2014/145/CFSP, and Council Regulation (EU) No 959/2014 similarly amends Regulation (EU) No 269/2014, and renews those restrictions for another 6 months, until 15 March 2015. The new criterion for inclusion in the asset freeze and travel ban is “natural or legal persons, entities or bodies conducting transactions with the separatist groups in the Donbass region of Ukraine.”
(2) Addition of 24 people on asset freeze and travel ban list
Council Implementing Regulation (EU) No 961/2014 includes the following 24 people in the asset freeze and travel ban: Alexander ZAKHARCHENKO (rebel leader in Donetsk), Vladimir KONONOV, Miroslav Vladimirovich RUDENKO, Gennadiy Nikolaiovych TSYPKALOV, Andrey Yurevich PINCHUK, Oleg BEREZA, Andrei Nikolaevich RODKIN, Aleksandr KARAMAN, Georgiy L’vovich MURADOV, Mikhail Sergeyevich SHEREMET, Yuri Leonidovich VOROBIOV, Vladimir Volfovich ZHIRINOVSKY (head of Liberal Democratic Party of Russia), Vladimir Abdualiyevich VASILYEV, Viktor Petrovich VODOLATSKY, Leonid Ivanovich KALASHNIKOV, Vladimir Stepanovich NIKITIN, Oleg Vladimirovich LEBEDEV, Ivan Ivanovich MELNIKOV, Igor Vladimirovich LEBEDEV, Nikolai Vladimirovich LEVICHEV, Svetlana Sergeevna ZHUROVA, Aleksey Vasilevich NAUMETS, Sergey Viktorovich CHEMEZOV (head of Rostec), and Alexander Mikhailovich BABAKOV.
A notice for the attention of those people informs them that they have been listed for the reasons given in the published measures, that they can apply to national authorities for licences, and that they may request that the Council of the EU reconsider their inclusion before 1 February 2015, and may apply to the European Court to annul their listing.
(3) Expanded financial and other restrictions on the military and oil sectors
Council Decision 2014/659/CFSP and Council Regulation (EU) No 960/2014 impose the following measures:
(a) They prohibit the direct or indirect purchase or sale of, the direct or indirect provision of investment services for or assistance in the issuance of, or any other dealing with bonds, equity, or similar financial instruments with a maturity exceeding 90 days, issued after 1 August 2014 to 12 September 2014, or with a maturity exceeding 30 days, issued after 12 September 2014 by major credit institutions or finance development institutions established in Russia with over 50 % public ownership or control (which are listed), and by a number of other types of entities in the defence / oil sectors.
(b) They prohibit the sale, supply or transfer of dual-use items to certain persons, entities or bodies in Russia.
(c) They prohibit the provision of services necessary for deep water oil exploration and production, arctic oil exploration and production or shale oil projects.