Sanctions tracker – latest developments in UK and EU sanctions against Russia

Our latest briefing summarises further UK and EU sanctions developments in response to the conflict in Ukraine.

UK

New designations

On 13 April, the UK’s Office of Financial Sanctions Implementation (“OFSI”) published details of 206 additional individuals added to the UK’s Russia-related asset freezing list. According to the Foreign Commonwealth & Development Office’s press release, these comprise 178 separatists from the Donetsk and Luhansk regions (the “Territories”), six oligarchs, close associates and employees, and an additional 22 individuals designated under the UK’s “urgent procedure”, on the basis that they are subject to asset freezing measures imposed by the EU, US or other allies.

General licences (“GLs”)

On 12 April, OFSI revoked an existing Russia-related GL (GL INT/2022/1438977) relating to GEFCO, a former joint venture between Russian Railways and Stellantis. This was on the basis that Russian Railways’ sale of its stake in GEFCO was completed on 8 April 2022, such that the company was no longer impacted by UK sanctions.

New legislation to be published 14 April

The 13 April press release referred to above also notes that secondary legislation will be laid in Parliament today (14 April) to prohibit (i) the import of Russian iron and steel products, and (ii) the export of quantum technologies, advanced materials and luxury goods to Russia. We will issue a further update on the details of these measures, once available.

FCA updates sanctions guidance

On 12 April, the FCA updated its webpage on financial sanctions to include information on notifications, stating that (i) firms should notify the FCA (and the PRA if dual-regulated) if they (or their appointed representatives and agents) are directly or indirectly subject to sanctions, and (ii) reminding firms to report suspected breaches to OFSI.

EU

Humanitarian exemptions

On 13 April, the Council of the EU announced the introduction of humanitarian exemptions in relation to certain of its existing sanctions restrictions. The exemptions have been introduced in relation to the asset freeze imposed under Regulation (EU) 269/2014 (the “Asset Freeze Regulation”) and the trade restrictions applying to the Territories under Regulation (EU) 2022/263 (the “Donetsk & Luhansk Regulation”), as described further below.

Council Regulation (EU) 2022/625 amends the Asset Freeze Regulation to add an exemption from the prohibition on making funds or economic resources available to designated persons for humanitarian partners of the EU, provided that the provision of funds or economic resources is necessary for exclusively humanitarian purposes in Ukraine. The amendments also include a licensing ground permitting the granting of general or specific licences for making funds and economic resources available for exclusively humanitarian purposes in Ukraine in circumstances not covered by the exemption. Licences will be deemed to be granted after five working days in the absence of a negative decision, request for information, or notification that additional time is required from the relevant Member State competent authority.

Council Regulation (EU) 2022/626 amends the Donetsk & Luhansk Regulation to introduce exemptions and licensing grounds in respect of: (i) the prohibitions on supplying goods or technology listed in Annex II of the Donetsk & Luhansk Regulation and related technical assistance, brokering services, financing or financial assistance; and (ii) the prohibition on providing technical assistance or brokering, construction or engineering services directly relating to infrastructure in specific sectors. The following are exempt from the prohibitions in (i) and (ii) (in all cases, where the supply/assistance is necessary for exclusively humanitarian purposes in the Territories):

• public bodies or entities/bodies receiving funding from the EU or Member States;
• pillar-assessed humanitarian partners of the EU operating under a financial framework partnership agreement;
• organisations/agencies with an EU Humanitarian Partnership Certificate, or which are certified or recognised by a Member State; and
• Member States’ specialised agencies.

As is the case with the Asset Freeze Regulation, a new licensing ground has also been included in the Donetsk & Luhansk Regulation permitting the granting of general or specific licences for humanitarian purposes by Member State competent authorities. However, there is no deemed authorisation provision included in the Donetsk & Luhansk Regulation.

Both amendments come into force on 14 April.

European Commission FAQs

The Commission has continued to update its FAQs on the Russia sanctions, including through the addition of new documents relating to the sale of securities, luxury goods, central securities depositories, and restrictions on access to EU ports.