EU clarifies procedure for applying EU sanctions over Russia's actions against Ukraine

22.06.2020 17:55

Ukrinform

At the request of Member States, the European Commission has clarified the procedure for applying EU economic sanctions using the example of a package of restrictive measures against Russia in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

This is stated in a press release published on the website of the European Commission.

"As part of its role to ensure the effective and uniform implementation of EU restrictive measures (sanctions), the European Commission today issued an Opinion that clarifies how existing financial sanctions should be interpreted in particular as regards the freezing of assets… The Opinion concerns the sanctions imposed by means of Council Regulation (EU) No 269/2014 in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. It was requested by EU national competent authorities, which are responsible for implementing EU sanctions," reads the statement.

In particular, asset freezing refers to the blocking of bank accounts and other assets of persons listed under EU sanctions. The Opinion should provide clarity to Member States' competent authorities as regards the implementation of restrictive measures imposed by the EU in this field.

"This Opinion will contribute to ensuring that Member States and their operators act consistently and effectively when they implement EU sanctions. It will clarify the scope of the asset freeze imposed on sanctioned individuals or entities. We have no doubt that it will contribute to a clearer and stronger application of sanctions across the EU,” said Valdis Dombrovskis, Executive Vice-President of the European Commission.

Similarly to other sanctions regulations, Council Regulation (EU) No 269/2014 imposes the freezing of all assets belonging to, owned, held or controlled by the listed natural and legal persons, and a prohibition to make funds and economic resources available to them. In this regard, the Commission clarified that the assets of an entity controlled by a listed person must be frozen, even if the entity as such is not listed. However, the controlled entity may obtain the lifting of the freeze on some or all of its assets if it provides evidence that they are in fact not controlled by the listed person.

The text further clarified that funds and economic resources cannot be made available to entities controlled by listed persons, except in specific cases foreseen as derogations in the sanctions regime. It also specified that the provision of labour or services to entities controlled by listed persons can amount to making economic resources indirectly available to the listed persons, insofar as it enables the latter to ultimately obtain an economic benefit.

As reported, since March 2014, the EU has progressively imposed restrictive measures against Russia. The measures were adopted in response to the illegal annexation of Crimea and the deliberate destabilisation of Ukraine.