The Council of Europe adopted Regulation (EU) 2023/2878 on December 18, 2023, amending Regulation (EU) 833/2014 concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine.
This marks the 12th “wave” of sanctions against Russia since the beginning of the war in Ukraine.
The new restrictive measures include:
– Prohibition of imports of Russian diamonds
– Prohibition of supply of certain software and technical assistance associated with these services
– Prohibition of imports of new customs codes related to steel products or goods generating significant revenue for Russia
– Transit ban through Russia for goods listed in Annex XXXVII
– Obligation to include in contracts a non-reexport clause to Russia for exporters of the most sensitive goods to third countries, including goods related to aviation, aviation fuels, firearms, and goods on the list of highly prioritized common items
– Obligation to notify competent state authorities post-transfer of funds exceeding €100,000.
The entry into force of the measures is immediate, except for the obligation to notify fund transfers and the prohibition of indirect import of Russian diamonds processed in third countries, for which the entry into force is deferred.
The obligation to notify fund transfers concerns legal entities, entities, and organizations established in the European Union, whose ownership rights are held directly or indirectly by more than 40% by:
– A legal entity, entity, or organization established in Russia
– A Russian national
– Or a natural person residing in Russia.
Thus, these legal entities, entities, and organizations established in the European Union are subject to the obligation to notify from May 1, 2024, to the competent authority of the Member State in which they are established and within two weeks following the end of each quarter, any fund transfer amounting to more than €100,000 during the quarter.
This notification is mandatory and only concerns fund transfers made outside the European Union during that quarter, directly or indirectly, in the context of one or more transactions.
Subsequently, credit institutions and financial institutions are also required to communicate to the competent authority of the Member State in which they are located, from July 1, 2024, and within two weeks following the end of each semester, information on fund transfers outside the European Union amounting to more than €100,000 during the semester, which they have made directly or indirectly for the aforementioned legal entities, entities, and organizations.
If you have any questions about sanctions against Russia, you can contact the lawyers at the LEX-PORT law firm.
