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New expanded UK Russia sanctions regulations now in force

New Russia regime regulations in force

On 10th February 2022, The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022 came into force.

The regulations amend the designation criteria of The Russia (Sanctions) (EU Exit) Regulations 2019. Designation critieria now includes those who have been involved in obtaining a benefit from or supporting the Government of Russia.

There are no new designations at this time.

From the amendment regulation (sections referring to this new criteria highlighted by Mr. Watchlist:

6.—(1) The Secretary of State may not designate a person under regulation 5 (power to designate persons) unless the Secretary of State—

(a)has reasonable grounds to suspect that that person is an involved person, and

(b)considers that the designation of that person is appropriate, having regard to—

(i)the purposes stated in regulation 4 (purposes), and

(ii)the likely significant effects of the designation on that person (as they appear to the Secretary of State to be on the basis of the information that the Secretary of State has).

(2) In this regulation, an “involved person” means a person who—

(a)is or has been involved in—

(i)destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine, or

(ii)obtaining a benefit from or supporting the Government of Russia,

(b)is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved,

(c)is acting on behalf of or at the direction of a person who is or has been so involved, or

(d)is a member of, or associated with, a person who is or has been so involved.

(3) For the purposes of this regulation, a person is “involved in destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine” if—

(a)the person is responsible for, engages in, provides support for, or promotes any policy or action which destabilises Ukraine or undermines or threatens the territorial integrity, sovereignty or independence of Ukraine;

(b)the person provides financial services, or makes available funds, economic resources, goods or technology, that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine;

(c)the person provides financial services, or makes available funds, economic resources, goods or technology, to—

(i)a person who is responsible for a policy or action which falls within sub-paragraph (a), or

(ii)a person who provides financial services, or makes available funds, economic resources, goods or technology, as mentioned in sub-paragraph (b);

(d)the person obstructs the work of international organisations in Ukraine;

(e)the person conducts business with a separatist group in the Donbas region;

(f)the person is a relevant person trading or operating in Crimea;

(g)the person assists the contravention or circumvention of a relevant provision.

(4) For the purposes of this regulation, being “involved in obtaining a benefit from or supporting the Government of Russia” means—

(a)carrying on business as a Government of Russia-affiliated entity;

(b)carrying on business of economic significance to the Government of Russia;

(c)carrying on business in a sector of strategic significance to the Government of Russia;

(d)owning or controlling directly or indirectly (within the meaning of regulation 7), or working as a director (whether executive or non-executive), trustee, or equivalent, of—

(i)a Government of Russia-affiliated entity;

(ii)a person, other than an individual, which falls within sub-paragraph (b) or (c).

Mr. Watchlist’s take: wow, that is one broad definition. All the oligarchs fall under this definition, as do all the state-owned enterprises (and their management)… oh, and without specifically singling out any given project like Nord Stream 2. Targeted? Not so much – but ,sometimes, the only way to fight a bully is to brandish a very big stick

Link:

The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022

Categories: OFSI Updates Russia sanctions Sanctions Regulations

eric9to5

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