{"id":46252,"date":"2014-09-16T08:20:00","date_gmt":"2014-09-16T08:20:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=cc20505c45a54c1f1dc173d832242c82"},"modified":"2014-12-22T10:32:15","modified_gmt":"2014-12-22T10:32:15","slug":"news-story-doing-business-in-russia-and-ukraine-sanctions-latest","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=46252","title":{"rendered":"News story: Doing business in Russia and Ukraine: Sanctions latest"},"content":{"rendered":"<p><em>Updated:<\/em> Update on new EU sanctions imposed on 18th December 2014.<\/p>\n<div class=\"govspeak\">\n<p>The European Union (<abbr title=\"European Union\">EU<\/abbr>) sanctions have been implemented in response to Russia\u2019s illegal annexation of Crimea and interventionist policies in eastern Ukraine. They have been closely coordinated with a wide range of international partners. <\/p>\n<p>The UK government is keeping its economic engagement with Russia under close review. Some bilateral cooperation and trade support activity is being affected.<\/p>\n<p>Decisions on any further diplomatic, political and economic measures will be taken in close collaboration with <abbr title=\"European Union\">EU<\/abbr> and G7 partners.<\/p>\n<p>The UK government will continue to offer UK companies support and guidance. Commercial decisions are ultimately for companies to make themselves on the basis of commercial risk, bearing in mind increased risk that high profile business engagement might be exploited by Russia for political reasons. <\/p>\n<div class=\"call-to-action\">\n<p>UK companies who want more information on how the current situation may impact business in Russia or Ukraine should contact the Department for Business, Innovations &amp; Skills (BIS) helpline on 0300 456 3565.<\/p>\n<\/div>\n<div class=\"call-to-action\">\n<p><a href=\"https:\/\/www.gov.uk\/government\/news\/ukraine-latest-updates\">Latest updates<\/a> on the government\u2019s response to the situation in Ukraine.<\/p>\n<p>Read the Foreign &amp; Commonwealth Office (FCO) travel advice for <a href=\"https:\/\/www.gov.uk\/foreign-travel-advice\/ukraine\">Ukraine<\/a> and <a href=\"https:\/\/www.gov.uk\/foreign-travel-advice\/russia\">Russia<\/a>.<\/p>\n<\/div>\n<h2 id=\"sanctions\">Sanctions<\/h2>\n<p>On 29 July 2014, the <abbr title=\"European Union\">EU<\/abbr> agreed to a significant package of measures to deter further destablisation of Ukraine by Russia. These were set out in a <a rel=\"external\" href=\"http:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/;ELX_SESSIONID=PGvxTb1TfZQrLFHlDHF3nJm8Tvhht9rDJ5G1zXlWH29HCttXghpg!-1633023516?uri=uriserv:OJ.L_.2014.229.01.0013.01.ENG\">Council Decision<\/a> and <a rel=\"external\" href=\"http:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/?uri=uriserv:OJ.L_.2014.229.01.0001.01.ENG\">Council Regulation<\/a>. They came into force on 1 August 2014.<\/p>\n<p>On 5 September 2014, the <abbr title=\"European Union\">EU<\/abbr> agreed to build on this existing package of measures in a further <a rel=\"external\" href=\"http:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/PDF\/?uri=OJ:JOL_2014_271_R_0009&amp;from=EN\">Council Decision<\/a> and <a rel=\"external\" href=\"http:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/PDF\/?uri=uriserv:OJ.L_.2014.271.01.0003.01.ENG\">Council Regulation<\/a>. The extended measures came into force on 12 September 2014. The <abbr title=\"European Union\">EU<\/abbr> sanctions fall into 3 main areas:<\/p>\n<ul>\n<li>financial sanctions against designated Russian banks, energy companies and defence companies<\/li>\n<li>arms embargo and restrictions on certain dual purpose technologies, which although intended for civilian use, might have military application <\/li>\n<li>restrictions on exports of high tech goods and services in the energy sector<\/li>\n<\/ul>\n<p>These sanctions were further revised on 4 December 2014 via Council Decision 2014\/842\/CFSP and Council Regulation (<abbr title=\"European Union\">EU<\/abbr>) No 1290\/2014 2014 (coming into force on 6 December 2014). These measures clarified the scope and application of certain provisions. The amendments can be seen in <a rel=\"external\" href=\"http:\/\/blogs.bis.gov.uk\/exportcontrol\/uncategorized\/notice-to-exporters-201430-amendments-to-eu-sanctions-against-russia\/\">Notice to Exporters 2014\/30<\/a> issued on 5 December 2014.<\/p>\n<p>It is for UK companies to make their own commercial decisions as to how to pursue business outside these sanctions. <\/p>\n<div class=\"call-to-action\">\n<p>The Export Control Organisation (<abbr title=\"Export Control Organisation\">ECO<\/abbr>) has issued several <a rel=\"external\" href=\"http:\/\/blogs.bis.gov.uk\/exportcontrol\/\">Notices to Exporters<\/a> setting out the details of these measures.<\/p>\n<\/div>\n<h3 id=\"financial-sanctions\">Financial sanctions<\/h3>\n<p>These prevent 5 state owned Russian banks and their subsidiaries accessing <abbr title=\"European Union\">EU<\/abbr> primary and secondary capital markets. This means that these banks will be unable to purchase, sell, or receive brokering for new transferable securities. These include bonds, shares and money market instruments, such as treasury bills. <\/p>\n<p>The <abbr title=\"European Union\">EU<\/abbr> has also prevented these targeted banks from accessing loans, another way to limit their access to financing. It has also limited their access to short-term financing by only permitting financing with a maturity of 30 days or less.<\/p>\n<p>The package also extends these financial sanctions to other sectors. 3 entities in the oil sector and 3 defence companies now also have major restrictions on access to the <abbr title=\"European Union\">EU<\/abbr>\u2019s capital and debt markets.<\/p>\n<div class=\"call-to-action\">\n<p>Read Her Majesty\u2019s (<abbr title=\"Her Majesty's\">HM<\/abbr>) Treasury <a href=\"https:\/\/www.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/354164\/UKraine__Reg_960_2014_.pdf\">Financial sanctions notice<\/a>.<\/p>\n<p>Contact the <abbr title=\"Her Majesty's\">HM<\/abbr> Treasury financial sanctions helpline on 020 7270 5454 for questions on financial sanctions.<\/p>\n<\/div>\n<h3 id=\"arms-and-dual-technology\">Arms and \u2018dual-technology\u2019<\/h3>\n<p>There is an arms embargo, and a ban on the supply of dual-use goods to Russia for military end-users and for certain other named end-users in Russia. There is also a ban on the provision of technical or financial assistance for supply or sale of these goods. <\/p>\n<p>The UK interprets the arms embargo to apply to all goods and technology on the <a href=\"https:\/\/www.gov.uk\/uk-strategic-export-control-lists-the-consolidated-list-of-strategic-military-and-dual-use-items\">Military List<\/a>. <\/p>\n<p>The restrictions on dual-use apply to all items in Annex 1 of <a rel=\"external\" href=\"http:\/\/trade.ec.europa.eu\/doclib\/docs\/2009\/june\/tradoc_143390.pdf\">Council Regulation 428\/2009<\/a>, except goods and technology intended for the:<\/p>\n<ul>\n<li>aeronautics and space industry<\/li>\n<li>maintenance and safety of existing civil nuclear capabilities within the <abbr title=\"European Union\">EU<\/abbr>.<\/li>\n<\/ul>\n<div class=\"call-to-action\">\n<p>Contact the <a href=\"https:\/\/www.gov.uk\/government\/organisations\/export-control-organisation\"><abbr title=\"Export Control Organisation\">ECO<\/abbr><\/a> for further advice on 020 7215 4594.<\/p>\n<\/div>\n<h3 id=\"energy-high-tech-goods\">Energy high tech goods<\/h3>\n<p>There are restrictions on the export of certain high-tech goods and associated services to Russia for:<\/p>\n<ul>\n<li>deep water oil exploration and production<\/li>\n<li>arctic oil exploration and production<\/li>\n<li>shale oil projects<\/li>\n<\/ul>\n<h2 id=\"asset-bans-and-travel-freezes\">Asset bans and travel freezes<\/h2>\n<p>132 individuals and 28 entities have now been listed under sanctions applied in response to violations of Ukraine\u2019s sovereignty.  <\/p>\n<p>The sanctions apply to all funds and economic resources belonging to, owned, held or controlled by those persons, entities or bodies listed. <\/p>\n<div class=\"call-to-action\">\n<p>Read <abbr title=\"Her Majesty's\">HM<\/abbr> Treasury\u2019s guidance on the <a href=\"https:\/\/www.gov.uk\/government\/publications\/financial-sanctions-ukraine-sovereignty-and-territorial-integrity\">visa bans and asset freezes<\/a> and their impact. The guidance includes an up to date list of all designated individuals and entities.<\/p>\n<\/div>\n<h2 id=\"other-measures\">Other measures<\/h2>\n<p>The 16 July 2014 European Council agreed to: <\/p>\n<ul>\n<li>suspend the financing of new projects in Russia by the European Investment Bank (EIB)<\/li>\n<li>coordinate <abbr title=\"European Union\">EU<\/abbr> member states\u2019 positions within the European Bank for Reconstruction and Development (<abbr title=\"European Bank for Reconstruction &amp; Development\">EBRD<\/abbr>) with a view to suspension of the <abbr title=\"European Bank for Reconstruction &amp; Development\">EBRD<\/abbr>\u2019s financing of new projects in Russia<\/li>\n<li>suspend, on a case-by-case basis, certain <abbr title=\"European Union\">EU<\/abbr> bilateral and regional cooperation programmes with Russia<\/li>\n<\/ul>\n<h2 id=\"russian-ban-on-imports-of-agricultural-products\">Russian ban on imports of agricultural products<\/h2>\n<p>On 7 August, the Russian government imposed a year long ban on the <a href=\"https:\/\/www.gov.uk\/government\/news\/russian-import-ban-on-agricultural-products\">import of certain agricultural commodities<\/a> from the <abbr title=\"European Union\">EU<\/abbr>.<\/p>\n<div class=\"call-to-action\">\n<p>For further advice please contact the Department for Environment, Food &amp; Rural Affairs (DEFRA) &#8211; Tel 01228 403 600.<\/p>\n<\/div>\n<h2 id=\"doing-business-in-crimea\">Doing business in Crimea<\/h2>\n<p>The UK government maintain a strict policy of non-recognition with respect to Crimea \/ Sevastopol, in line with UN General Assembly Resolution 68\/262. UK businesses should be mindful of the increased commercial risks created by this situation.<\/p>\n<p>Following the <a rel=\"external\" href=\"http:\/\/ec.europa.eu\/commission_2010-2014\/ashton\/topics\/20140624_en.htm\"><abbr title=\"European Union\">EU<\/abbr> Foreign Affairs Council of 23 June 2014<\/a> <abbr title=\"European Union\">EU<\/abbr> members agreed to:<\/p>\n<ul>\n<li>prohibit the import of goods originating from Crimea and Sevastopol with the exception of those with certificates of origin granted by the government of Ukraine<\/li>\n<li>prohibit direct or indirect financing, or financial assistance for the import of goods from Crimea and Sevastopol, as well as insurance and reinsurance related to such imports<\/li>\n<\/ul>\n<p>In addition the <abbr title=\"European Union\">EU<\/abbr> Council agreed on 29 July 2014 to impose measures relating to the illegal annexation of Crimea. These measures imposed on <abbr title=\"European Union\">EU<\/abbr> citizens and businesses:<\/p>\n<ul>\n<li>restrict investment in and export to Crimea<\/li>\n<li>call on international financial institutions to refrain from financing any projects that explicitly or implicitly recognise the illegal annexation of Crimea and Sevastopol<\/li>\n<li>ban investment in enterprises established in Crimea or Sevastopol engaged in the creation, acquisition or development of transport, telecommunications, energy infrastructure<\/li>\n<li>ban the supply of certain equipment, technology and technical assistance, or investment, for oil, gas or mineral resources activity in Crimea or Sevastopol<\/li>\n<li>apply to all new investments and not to existing investments or commitments in existing contracts until 28 October 2014<\/li>\n<\/ul>\n<p>Read the details of the <a rel=\"external\" href=\"http:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/?uri=uriserv:OJ.L_.2014.226.01.0020.01.ENG\"><abbr title=\"European Union\">EU<\/abbr> Council decision<\/a> and <a rel=\"external\" href=\"http:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/PDF\/?uri=OJ:JOL_2014_226_R_0002&amp;qid=1406887169741&amp;from=EN\"><abbr title=\"European Union\">EU<\/abbr> regulation<\/a> online.<\/p>\n<p>On 18 December 2014, the <abbr title=\"European Union\">EU<\/abbr> imposed substantial additional sanctions on investment, services and trade with Crimea and Sevastopol in a further <a rel=\"external\" href=\"http:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/PDF\/?uri=OJ:JOL_2014_365_R_0024&amp;qid=1418983214532&amp;from=EN\">Council Decision<\/a> and <a rel=\"external\" href=\"http:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/PDF\/?uri=OJ:JOL_2014_365_R_0006&amp;qid=1418983214532&amp;from=EN\">Council Regulation<\/a>. The new measures introduced the following amendments:<\/p>\n<ul>\n<li>a ban on acquiring real estate in Crimea or Sevastopol<\/li>\n<li>a ban on providing services related to tourism activities, including in the maritime sector, in Crimea or Sevastopol<\/li>\n<li>a ban on providing technical, brokering, construction, or engineering services directly relating to infrastructure in Crimea and Sevastopol<\/li>\n<li>an extension of the existing ban on joint ventures and investment financing to cover any entity from Crimea or Sevastopol<\/li>\n<li>an extension and revision of the list of goods banned for supply to Crimea or Sevastopol and for which the provision of brokering, technical or financial services is banned<\/li>\n<\/ul>\n<div class=\"call-to-action\">\n<p>Contact <a href=\"mailto:commercial.kyiv@gmail.com\">UK Trade &amp; Investment (<abbr title=\"UK Trade &amp; Investment\">UKTI<\/abbr>) Ukraine<\/a> for further advice on doing business in Crimea.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Latest information for UK businesses on Russia and Ukraine, including the Crimea, following the introduction of further EU sanctions on 18 December 2014.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/46252"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46252"}],"version-history":[{"count":9,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/46252\/revisions"}],"predecessor-version":[{"id":51963,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/46252\/revisions\/51963"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}