Ukraine Regime

• Council Regulation (EU) 2022/1269 of 21 July 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine

On 21 July 2022, the Council adopted Decision (CFSP) 2022/1271, amending Decision 2014/512/CFSP. Decision (CFSP) 2022/1271 extends the list of controlled items which might contribute to Russia’s military and technological enhancement or the development of its defence and security sector. It also imposes a prohibition on the direct or indirect import, purchase or transfer of gold. This prohibition applies to Russian-origin gold, exported from Russia after the entry into force of the Regulation. Decision (CFSP) 2022/1271 extends the port access ban to locks in order to ensure full implementation of the measure and avoid circumvention. In order to safeguard the technical industrial standard setting process of the International Civil Aviation Organization (ICAO), Decision (CFSP) 2022/1271 allows, the sharing of technical assistance with Russia in relation to aviation goods and technology in this specific framework. In order to ensure access to justice, Decision (CFSP) 2022/1271 also allows an exemption from the prohibition to enter into any transactions with Russian public entities necessary to ensure access to judicial, administrative or arbitral proceedings. In order to ensure the correct implementation of the measures set out in Regulation (EU) No 833/2014, it is necessary to clarify the scope of the prohibition on public procurement. Further, it is necessary to harmonise the notification requirements for national competent authorities granting authorisations pursuant to derogations provided for in that Regulation. Decision CFSP 2022/1271 expands the scope of the prohibition on accepting deposits to include those from legal persons, entities or bodies established in third countries and majority-owned by Russian nationals or natural persons residing in Russia. Additionally, it subjects the acceptance of deposits for non-prohibited cross-border trade to a prior authorisation by the national competent authorities. Finally, Decision CFSP 2022/1271 makes certain technical corrections in the operative text and certain annexes. In view of the Union’s determined stance to combat food and energy insecurity around the world, and in order to avoid any potential negative consequences therefor, Decision (CFSP) 2022/1271 extends the exemption from the prohibition to engage in transactions with certain State-owned entities as regards transactions for agricultural products and the supply of oil and petroleum products to third countries. In more general terms, the Union is committed to avoiding all measures which might lead to food insecurity around the globe. Consequently, none of the measures in this Regulation or any of those adopted earlier in view of Russia’s actions destabilising the situation in Ukraine target in any way the trade in agricultural and food products, including wheat and fertilisers, between third countries and Russia. Similarly, the Union measures do not prevent third countries and their nationals operating outside of the Union from purchasing pharmaceutical or medical products from Russia. These measures fall within the scope of the Treaty and, therefore, in particular with a view to ensuring their uniform application in all Member States, regulatory action at the level of the Union is necessary.

Regulation (EU) No 833/2014 should therefore be amended accordingly.

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• Council Decision (CFSP) 2022/1271 of 21 July 2022 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine

On 21 July 2022, in view of the gravity of the situation, and in response to Russia’s military aggression against Ukraine, the EU considered it appropriate to introduce further restrictive measures. In particular, it is appropriate to prohibit the direct or indirect import, purchase or transfer of gold. This prohibition applies to Russian-origin gold, exported from Russia after the entry into force of the Decision. It is also appropriate to extend the port access ban to locks in order to ensure full implementation of the measure and avoid circumvention. Moreover, it is appropriate to expand the scope of the prohibition on accepting deposits to include those from legal persons, entities or bodies established in third countries and majority-owned by Russian nationals or natural persons residing in Russia. It is also appropriate to subject the acceptance of deposits for non-prohibited cross-border trade to a prior authorisation by the national competent authorities. It is also appropriate to add certain entries to the lists of legal persons, entities and bodies set out in Annex IV of Decision 2014/512/CFSP. Furthermore, it is appropriate to clarify the scope of the prohibition on public procurement. In order to safeguard the technical industrial standard setting process of the International Civil Aviation Organization (ICAO), it is appropriate to allow the sharing of technical assistance with Russia in relation to aviation goods and technology in this specific framework. In order to ensure access to justice, it is also appropriate to introduce an exemption from the prohibition to enter into any transactions with Russian public entities where this is necessary to ensure access to judicial, administrative or arbitral proceedings. In view of the Union’s determined stance to combat food and energy insecurity around the world, and in order to avoid any potential negative consequences therefor, it is appropriate to extend the exemption from the prohibition to engage in transactions with certain State-owned entities as regards transactions for agricultural products and the supply of oil and petroleum products to third countries. In more general terms, the Union is committed to avoiding all measures which might lead to food insecurity around the globe. Consequently, none of the measures in this Decision or any of those adopted earlier in view of Russia’s actions destabilising the situation in Ukraine target in any way the trade in agricultural and food products, including wheat and fertilisers, between third countries and Russia. Similarly, the Union measures do not prevent third countries and their nationals operating outside of the Union from purchasing pharmaceutical or medical products from Russia. Further action by the Union is needed in order to implement certain measures.

Decision 2014/512/CFSP should therefore be amended accordingly.

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• Council Implementing Regulation (EU) 2022/1270 of 21 July 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

On 21 July 2022, the EU added 48 persons and 9 entities considered 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 under in Annex I to Regulation (EU) No 269/2014.

Regulation (EU) No 269/2014 should therefore be amended accordingly.

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• Council Decision (CFSP) 2022/1272 of 21 July 2022 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine

On 21 July 2022, the EU added 48 persons and 9 entities considered responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine to the list of persons, entities and bodies subject to restrictive measures set out in the Annex to Decision 2014/145/CFSP. Moreover, it is appropriate to introduce a further derogation from the asset freeze and the prohibition to make funds and economic resources available to designated persons and entities in order to urgently prevent or mitigate an event likely to have a serious and significant impact on human health and safety or the environment. In view of the Union’s determined stance to avoid and combat food insecurity around the world, and in order to avoid disruptions in the payment channels for agricultural products, it is also appropriate to introduce a derogation from the asset freeze and the prohibition to make funds and economic resources available to designated banks. It is also appropriate to introduce a derogation from the asset freeze and the prohibition to make funds and economic resources available for the orderly wind-down of operations, including correspondent banking relations, with one designated bank. Further action by the Union is needed in order to implement certain measures.

Decision 2014/145/CFSP should therefore be amended accordingly.

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• Council Regulation (EU) 2022/1273 of 21 July 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

On 21 July 2022, the Council adopted Decision (CFSP) 2022/1272 amending Decision 2014/145/CFSP, whereby it introduced a further derogation from the asset freeze and the prohibition to make funds and economic resources available to designated persons and entities in order to urgently prevent or mitigate an event likely to have a serious and significant impact on human health and safety or the environment. Decision (CFSP) 2022/1272 also introduces a derogation from the asset freeze and the prohibition to make funds and economic resources available to designated banks. Decision (CFSP) 2022/1272 also introduces a derogation from the asset freeze and the prohibition to make funds and economic resources available for the orderly wind-down of operations, including correspondent banking relations, with one designated bank. Designated persons and entities with assets within the jurisdiction of a Member State are obliged to report these assets and to cooperate with the competent authority in the verification of this reporting. Failure to respect this obligation would constitute a circumvention of the freezing of assets and would be subject to penalties if the conditions for such penalties are met under applicable national rules and procedures.

Regulation (EU) No 269/2014 should therefore be amended accordingly.

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• Council Implementing Regulation (EU) 2022/1274 of 21 July 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 (linked here)
• Council Decision (CFSP) 2022/1276 of 21 July 2022 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (linked here)

On 21 July 2022, the EU added six individuals and one entity involved in the recruitment of Syrian mercenaries to fight in Ukraine alongside Russian troops under the list of persons, entities and bodies subject to restrictive measures set out in the Annex I to Regulation (EU) No 269/2014 and Annex to Decision 2014/145/CFSP.

Regulation (EU) No 269/2014 and Decision 2014/145/CFSP have therefore be amended accordingly.

Syria Regime

• Council Implementing Regulation (EU) 2022/1275 of 21 July 2022 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria (linked here)
• Council Implementing Decision (CFSP) 2022/1277 of 21 July 2022 implementing Decision 2013/255/CFSP concerning restrictive measures against Syria (linked here)

On 21 July 2022, The EU added four persons and one entity under list of natural and legal persons, entities or bodies subject to restrictive measures in Annex II to Regulation (EU) No 36/2012 and Annex I to Decision 2013/255/CFSP

Please be reminded that all EU/UN sanctions are directly applicable under Maltese law (without the need of any further legislation or notification) 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.mftp@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