As trailed in our previous briefing, the UK has today (14 April) published the Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations 2022 (the “Amending Regulations”), amending the UK’s principal Russia sanctions legislation: the Russia (Sanctions) (EU Exit) Regulations 2019 (the “Russia Regulations”). The Amending Regulations contain various provisions expanding upon the UK’s existing trade sanctions relating to Russia, as outlined below, and come into force at 5pm on 14 April.
New export restrictions: oil refining, quantum computing and luxury goods
The Amending Regulations expand the existing list of “restricted goods” in the Russia Regulations to include: (i) oil refining goods (as listed in Schedule 2D to the Russia Regulations), and (ii) “quantum computing and advanced materials goods” (as listed in Schedule 2E to the Russia Regulations). Schedule 2E lists various equipment and components including (among others): cryogenic refrigeration systems, ultra-high vacuum equipment, microscopes, and certain types of manufacturing equipment.
The Russia Regulations prohibit the export, supply, delivery or making available of restricted goods to Russia, to a person connected with Russia, or for use in Russia, and also contain restrictions on related technical assistance, brokering services, financing or financial assistance.
The Amending Regulations also introduce new prohibitions on the export, supply or delivery of luxury goods to Russia (including making those goods available to a person connected with Russia, or for use in Russia). The luxury goods to which the restrictions apply are listed in Schedule 3A to the Russia Regulations. That schedule specifies a sale price per item which is to be used in determining whether the goods in question fall within the restrictions. The specified ‘luxury goods’ are very broad ranging (from horses to truffles, and clothes to vacuum cleaners) so will cover a range of items that may not normally be thought of as luxury goods – save as a result of the value threshold.
The new restrictions are subject to a number of the exemptions contained in the Russia Regulations, including in relation to personal effects, goods necessary for the official purposes of a diplomatic mission or consular post, consumer communications devices, and emergencies, although the types of goods to which these exemptions apply varies (e.g. the emergencies provision only relates to oil refining goods) and so the precise details of the legislation should be subject to careful review by any companies wishing to rely on an exemption to continue supplying relevant types of goods to Russia.
The Foreign Development and Commonwealth Office has not yet updated its Russia sanctions guidance which summarises the licensing grounds available for different categories of restricted goods.
New import and trading restrictions: iron and steel products
The Amending Regulations also contain new prohibitions relating to iron and steel products which originate in, are consigned from or are located in Russia.
The prohibitions cover the import of such goods into the UK, the acquisition of such goods, or the supply or delivery of such goods from a place in Russian to a third country.
The relevant products are listed in Schedule 3B of the Russia Regulations.
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