EU restrictive measures in view of the situation in Eastern Ukraine and the illegal annexation of Crimea

EU News 327/2014

BACKGROUND NOTE
Brussels, 29 July 2014

Economic sanctions

The Council's Committee of Permanent Representatives (Coreper) today reached agreement on EU restrictive measures in view of Russia's actions destabilising the situation in eastern Ukraine.

In order to restrict Russia's access to EU capital markets, EU nationals and companies may no more buy or sell new bonds, equity or similar financial instruments with a maturity exceeding 90 days, issued by major state-owned Russian banks, development banks, their subsidiaries and those acting on their behalf. Services related to the issuing of such financial instruments, e.g. brokering, are also prohibited.

In addition, an embargo on the import and export of arms and related material from/to Russia was agreed. It covers all items on the EU common military list.

Coreper also reached agreement on a prohibition on exports of dual use goods and technology for military use in Russia or to Russian military end-users. All items in the EU list of dual use goods are included (see latest list in annex to regulation 428/2009).

Finally, exports of certain energy-related equipment and technology to Russia will be subject to prior authorisation by competent authorities of Member States. Export licenses will be denied if products are destined for deep water oil exploration and production, arctic oil exploration or production and shale oil projects in Russia.

The measures will apply to new contracts. These restrictions will now be formally adopted by the Council through a written procedure. They will apply from the day following their publication in the EU Official Journal, which is scheduled for late on 31 July.

Additional restrictions for Crimea and Sevastopol

In addition, the Coreper meeting of 28 July agreed on trade and investment restrictions for Crimea and Sevastopol, as requested by the European Council of 16 July. These comprise a ban on new investment in the following sectors in Crimea and Sevastopol: infrastructure projects in the transport, telecommunications and energy sectors and in relation to the exploitation of oil, gas and minerals. Key equipment for the same six sectors may not be exported to Crimea and Sevastopol; finance and insurance services related to such transactions must not be provided.

Furthermore, Permanent Representatives agreed that 8 persons and 3 entities will be added to the list of those subject to an asset freeze and a visa ban, inter alia for providing support to or benefiting from Russian decisions makers responsible for the destabilisation of Eastern Ukraine and the illegal annexation of Crimea. This brings the number of persons and entities under EU restrictions to 95 persons and 23 entities.

These measures will come into force after their formal adoption by the Council through written procedures and their publication in the EU Official Journal, scheduled for late on 30 July.

Source and additional information:
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/144159.pdf

• Tweet