Ukraine/Russia

Information as of: 11th May 2022

Latest Updates
UN  
US On 21 February 2022 OFAC issued "Issuance of Executive Order Blocking Property Of Certain Persons And Prohibiting Certain Transactions With Respect To Continued Russian Efforts To Undermine The Sovereignty And Territorial Integrity Of Ukraine," following Russia’s recognition of the separatist Ukrainian regions of Donetsk People’s Republic (DNR) and Luhansk People’s Republic (LNR). The sanctions will apply to any contract entered into prior to 21 February 2022 (subject to any licences issued). The measures include a prohibition on new investment in the DNR and LNR regions; the importation into the US of any goods, services, or technology from the Covered Regions; the exportation, supply, from the US of any goods, services, or technology to the Covered Regions; blocking of all property and interests in the US or in the possessions or control of any US person (including foreign branches) so designated. On the 24 February 2022 OFAC  issued Russia-related Directive 2 under E.O. 14024, “Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions" and Directive 3 “Prohibitions Related to New Debt and Equity of Certain Russia-related Entities” prohibiting transactions and dealings by US person/entities with various Russian owned businesses and banks. On the 28 February OFAC issued Directive 4 under E.O. 14024, “Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation”, which prohibits all transactions involving named Russian banks. Additionally OFAC issued  General Licence 8A, which authorises, until 24 June 2022, certain energy-related transactions with the Russian Central Bank. On the 1 March 2022 OFAC  issued the Russian Harmful Foreign Activities Sanctions Regulations to implement E.O. 14024, ‘‘Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation.’’ On the 23 February the US terminated a sanctions waiver issued in May 2021 and imposed sanctions relating to Nord Stream 2 AG pursuant to PEESA and E.O. 14039, as well as issuing General Licence 4 to facilitate the winding down of transactions until 2 March 2022. On the 2 March the US expanded its export controls imposed on Russia to Belarus as well as a ban on Russian aircraft from entering/using US airspace. On the 8 March 2022 the US issued EO "Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts to Undermine the Sovereignty and Territorial Integrity of Ukrainewhich bans the importation into the US of Russian: crude oil, petroleum; petroleum fuels, oils and products of their distillation, any new US investment in Russia’s energy sector and any financing / facilitation of a transaction by US entity of activities prohibited under this E.O. OFAC issued General Licence16, which authorises the wind down of all transactions, until 22 April 2022, prohibited the by the new E.O. that are ordinarily necessary to the importation into the US of Russian crude oil pursuant to written contracts entered before 8 March 2022. On the 11 March 2022 the US issued, BIS Final Rule and "Executive Order on Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression," which expands EO 14024, EO 14066 and EO14068 banning new investment, import/ export of luxury goods and any products of Russian Federation origin. On the 31st March 2022 the US issued a Determination which extends E.O. 14024 to the aerospace, electronics and marine sectors of the Russian economy. More widely, on the 2nd May OFAC reissued in its entirety its Russia / Ukraine sanctions framework as the Ukraine-/Russia-Related Sanctions Regulations. The new regulations are a comprehensive update of those originally published in abbreviated form in May 2014 as well incorporating the recent expansion of restrictive measures and General Licenses.  On the 8th May 2022 OFAC issued a Determination identifying accounting, trust and corporate formation and management consulting service sectors of the Russian economy as subject to sectoral sanctions pursuant to E.O. 14071. On the 11th May 2022 the Bureau of Industry and Security (BIS)  imposed restrictions on Russia’s industrial sector meaning additional licence requirements for exports, reexports or transfers (in-country) to and within Russia will be placed on a range of items with industrial and commercial applications, including wood products, industrial engines, boilers, motors, fans, ventilation equipment and bulldozers.
EU  On the 23 February 2022 the EU introduced a suite of restrictive measures which  prohibit the financing of Russia, its government and its Central Bank, designated 22 persons and four entities that played a role in undermining or threatening Ukrainian territorial integrity, (the four entities designated are the Internet Research Agency; Bank Rossiya; Promsvyazbank and VEB.RF), as well as the designation of 336 members of the Russian State Dumathat who voted in favour to recognise the separatist claimed Donetsk People’s Republic (DNR) and Luhansk People’s Republic (LNR) as independent states pursuant of CFSP 2022/264, CFSP 2022/265, and CFSP 2022/267. Specifically under CFSP 2022/266 in relation to the non-government (Ukrainian) controlled areas of DNR and LNR, the EU have imposed restrictions on goods originating in those areas, the provision of finance or (re)insurance, trade in goods and technology for use in the non-government controlled areas and prohibits services in the transport, telecommunications and energy sectors as well as services related to tourism activities. It gives until the 24th May 2022 for the execution of any contracts concluded before the 23 February 2022 and prohibits the investment in, acquisition of and/or extension of any existing. On the 25 February restrictions and criteria originally stated under CFSP 269/2014 were expanded and amended for inclusion on the EU’s Russia sanctions list pursuant of (EU) 2022/330 and (EU) 2022/332 which designated various Russian officials including Vladamir Putin. Additionally, On 25 February the EU expanded 833/2014 under (CFSP) 2022/327 and (EU) 2022/328 aimed at cutting off Russian access to the most important capital markets and economic restrictions targeting the Russian defence, energy and aviation sectors. On the 28 February the EU adopted (CFSP) 2022/335 & (EU) 2022/334 which imposes a ban on any aircraft operated by Russian air carriers to land or fly by EU territory. On the 1 March the EU announced that as at 12 March 2022, 7 named Russian banks and any entity established in Russia and owned by more than 50% by one of the named banks, would be removed from SWIFT services under CFSP 2022/346 & EU 2022/345. Pursuant of CFSP 2022/351 &  (EU) 2022/350 the EU introduced restrictive measures prohibiting the broadcasting and the facilitation of broadcasting by designated media outlets. On the 9 March 2022 the EU issued CFSP 2022/395 & EU 2022/394 which prohibits the sale, and transfer of maritime navigation goods and technology to any person/entity in Russia and adds the Russian Maritime Register of Shipping to the list of state-owned enterprises subject to financial restrictions. On the 15 March 2022 EU 2022/428 and CFSP 2022/430 which introduces a ban on new investments in the Russian energy sector, an export restriction on equipment, technology and services for the energy industry in Russia (with the exception of the nuclear industry and the downstream sector of energy transport) and luxury goods. On the 8th April 2022 the EU adopted Council Regulation 2022/576 & CFSP 2022/578 which prohibits the purchase, import or transfer of coal and other solid fossil fuels into the EU if they originate in or are exported from Russia, as from August 2022. It also introduces further export restrictions to Russia, in particular on jet fuel. The restrictive measures further expand the restrictions on access to EU ports to vessels registered under the flag of Russia, however, derogations are granted for agricultural, humanitarian aid and energy. Restrictions are introduced on the continued execution of public contracts with Russian nationals and entities established in Russia as well as prohibitions for road transport undertakings established in Russia to transport goods by road in the Union.
UK On 10 February 2022, The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022 came into force. The regulations amend the designation criteria of which now includes those who have been involved in obtaining a benefit from or supporting the Government of Russia. On the 22 February 2022, following Russia’s recognition of the separatist Ukrainian regions of Donetsk People’s Republic (DNR) and Luhansk People’s Republic (LNR) the UK has announced sanctions against five Russian Banks and three individuals said to be close to President Putin. On the 25 February the UK designated Vladamir Putin The Russia (Sanctions) (EU Exit) Regulations 2019. The Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022 expands the scope of existing prohibitions on financial institutions including issuing loans or credit.  Additionally, on the 25 February, the UK imposed a ban on all Russian-registered aircraft “connected with Russia” from entering UK airspace pursuant under The Air Navigation (Restriction of Flying) (Russian Aircraft) Regulations 2022. On the 28 February the UK  removed Russia as a permitted destination from numerous open general export licences (OGELs) and suspended the approval of new export licences for dual-use items to Russia with immediate effect under The Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2022. On the 1 March 2022 OFSI issued The Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2022 which introduce new  shipping restrictions against Russia including the designation of vessels/ships, prohibiting access to UK ports by Russian ships and authorising the Secretary of State to control the movement of Russian ships. The Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2022 prohibits the provision of financial services for to The Central Bank of the Russian Federation;  the National Wealth Fund of the Russian Federation; the Ministry of Finance of the Russian Federation. OFSI have issued various General Licences detailing wind down periods for some designated entities. On the 8 Mar 2022 the UK issued S.I. 2022/203 which prohibits re/insurance to aviation and space sector general licence for wind-down which gives until 28th March for contracts in force before the effective time and date of the sanctions. On 15th Mar 2022, the UK announced a ban on exports of high-end luxury goods to Russia, in line with similar actions taken by G7 countries and likely to affect luxury vehicles, high-end fashion and works of art. On the 23rd Mar 2022 the UK introduced The Customs (Additional Duty) (Russia and Belarus) Regulations 2022 which denies Most Favoured Nation (MFN) entitlement for key imports originating in Russia and Belarus, including vodka and antiques, and imposing an additional 35% tariff on specified products. On the 30th March 2022 OFSI introduced The Russia (Sanctions) (EU Exit) (Amendment) (No. 7) Regulations 2022 (S.I. 2022/395) which extends the power to designate people/entities “by description,” extends the existing finance, shipping and trade sanctions relating to Crimea to the non-government controlled areas of the Donetsk and Luhansk and a ban on the provision of aviation and shipping technical assistance. On the 5th April the Department for International Trade revised the General Licence to include aircraft and aeroengines and the provision of insurance services relating to aviation within the scope of the licence. Members will note that any person seeking to rely on the licence must register online via SPIRE within 30 days of their first use of the licenceOn the 14th April 2022 the UK introduced Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations which prohibits the sale or export to Russia of oil refining goods and technology, quantum computing and advanced materials goods and technology.  On 21st April 2022, the UK announced that it would impose import bans on an extended list of Russian goods, including silver, wood products and high-end products such as caviar as well a 35% tariff increase will be placed on approximately £130m worth of products from Russia and Belarus, including diamonds and rubber. On the 29th Apr 2022 the UK introduced Russia (Sanctions) (EU Exit) (Amendment) (No. 9) Regulations. The amendment regulations introduce new Russia trade sanctions which require social media services, to take reasonable steps to prevent content that is generated by a designated person/entity being seen by a UK-based user; internet access services, to take reasonable steps to prevent UK-based users from accessing websites provided by a designated person/entity; and application stores, to take reasonable steps to prevent UK-based users from downloading or otherwise accessing an application provided by a designated person/entity.
Financial/Other Sanctions
UN  
US EO 13660 (6 March 2014), updated by EO 13662 (20 March 2014). EO 13818. CBW Act 27 Aug 2018, Public Notice 10519 in Federal Register. CBW Act 27 Aug 2018, Public Notice 10519 in Federal Register. EO12851 , EO13883Russia Related DirectiveEO Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation“Blocking Property with Respect to Certain Russian Energy Export Pipelines”, "Issuance of Executive Order Blocking Property Of Certain Persons And Prohibiting Certain Transactions With Respect To Continued Russian Efforts To Undermine The Sovereignty And Territorial Integrity Of Ukraine," Directive 2 under E.O. 14024, “Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions" , Directive 3 “Prohibitions Related to New Debt and Equity of Certain Russia-related Entities” Directive 4 under E.O. 14024, “Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation”,Russian Harmful Foreign Activities Sanctions Regulations E.O. 14039EO "Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts to Undermine the Sovereignty and Territorial Integrity of UkraineGeneral Licence16BIS Final Rule , "Executive Order on Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression," EO14065,EO 14066Determination , E.O. 14071, reissued Ukraine / Russia Related Sanctions Regulations
EU EU 208/2014 (6 March 2014), implemented by EU 269/2014 (17 March 2014) amended by EU 783/2014 (19 July 2014) and EU 810/2014 (25 Jul 2014) and Council Decision (CFSP) 2017/1547.EU 2014/386/CFSP (23rd June 2014), amended by EU 825/2014 (31st July 2014), EU 1351/2014 (20 Dec 2014). EU 833/2014 (31st July 2014), EU 960/2014 (12th Sep 2014) both amended by EU 1290/2014 (5 Dec 2014). EU 2014/512 extended by CFSP 2018/2078. CFSP 2018/1237, CFSP 2019/415, CFSP 2019/1018  CFSP 2019/2192    CFSP 2020/399 (CFSP) 2020/1269CFSP 2021/1144. (CFSP) 2021/1010 CFSP 2022/52CFSP 2022/264CFSP 2022/265,  CFSP 2022/267.  CFSP 2022/266(EU) 2022/330 and (EU) 2022/332(CFSP) 2022/327 and (EU) 2022/328(CFSP) 2022/335 & (EU) 2022/334CFSP 2022/346 & EU 2022/345,CFSP 2022/351 &  (EU) 2022/350 CFSP 2022/395 & EU 2022/394  EU 2022/428 and CFSP 2022/430 Council Regulation 2022/576 & CFSP 2022/578 
UK
 The Russia (Sanctions) (EU Exit) Regulations 2019 The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022The Russia (Sanctions) (EU Exit) Regulations 2019The Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022The Russia (Sanctions) (EU Exit) (Amendment) (No. 3) The Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2022The Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2022  The Air Navigation (Restriction of Flying) (Russian Aircraft) Regulations 2022. S.I. 2022/203The Customs (Additional Duty) (Russia and Belarus) Regulations 2022  Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations  Russia (Sanctions) (EU Exit) (Amendment) (No. 9) Regulations
 
Arms Embargo
UN No
US Yes. Previously operated a policy of denial for licences for arms. 27 Aug 2018 under the CBW Act, termination of arms sales and arms sales financing came into effect: Public Notice 10519 in Federal Register.
EU Council Reg 833/2014effective 31st July 2014 CFSP 2018/1237, CFSP 2019/415
UK
 The Russia (Sanctions) (EU Exit) Regulations 2019
Further Details
UN No
US EO 13660 blocking property of designated individuals/entities (including those entities that are owned or controlled by SDNs) by any 'US person' (effective 6 Mar 2014). Amended by EO 13661 (effective 17 Mar 2014) and EO 13662 (effective 20 Mar 2014) including further designations, including Bank Rossiya.  Sectorial Sanctions expanded to further Russian banks and defence companies on 29 Jul 2014. Sectorial Sanctions expanded further to include more entities and a prohibition from transacting in, providing financing for, or otherwise dealing in debt of longer than 30 days maturity or new equity, their property or their interests in their property, for various persons named on SSI list, the provision, exportation, or re-exportation of goods, services or technology in support of exploration or production for deep water, Arctic offshore, or shale projects that have the potential to produce oil in the Russian Federation, or in maritime area claimed by the Russian Federation and extending from its territory, effective 12 Sep 2014. Ukraine / Russia Directive 4 (Under EO 13662) amended 31 Oct 2017 to expand these sanctions to oil produced outside of Russia by persons/entities on the list that over controlling or ownership interest of a company in excess of 33%, effective 29 Jan 2018. Sectorial Sanctions Identifications List, effective from 16 Jul 2014, includes a prohibition from transacting in, providing financing for, or otherwise dealing in debt of longer than 90 days maturity or new equity for certain Russian financial institutions and energy firms, their property or their interests in their property. 29 Sep 2017 amended Directive to further restrict prohibition on transactions providing financing for, or otherwise dealing in debt of longer than 14 days maturity or new equity for certain Russian financial institutions, their property or their interests in their property and prohibits transacting in, providing financing for, or otherwise dealing in new debt of specified tenors for longer than 60 days maturity by, on behalf of, or for the benefit of the persons operating in Russia’s energy sector, their property, or their interests in property. These further restrictions apply to transactions that occur on or after 28 Nov 2017.  Ukraine Freedom Support Act 2014 signed into law on 18 Dec 2014 enables the imposition of additional measures from a number of options that can be imposed if warranted and includes sanctions against foreign financial institutions. Section 226 of CAATSA amends section 5 of the UFSA by making the sanctions in that section, which previously were discretionary, mandatory. Executive Order 19 Dec 2014 prohibits the import or export of any goods, services or technology to or from Crimea, the finance, guarantee or facilitation by a US person of any transaction by a foreign person that would otherwise be prohibited if performed by a US person, prohibition on purchasing any real estate or businesses in Crimea and the making of any new investment in Crimea. All sanctions imposed under EOs extended until 2 Mar 2019 under the National Emergencies Act by POTUS. EO 13818 implementing the Global Magnitsky Human Rights Accountability Act blocks all property and interests in property within U.S. jurisdiction of the designated individuals and entities and U.S. persons are generally prohibited from engaging in transactions with them. On the 18 Dec 2018 the Global Magnitsky Human Rights Accountability Act was extended by a further year. On 6 Aug 2108, the US determined pursuant the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act) that the Government of the Russian Federation has used chemical weapons in violation of international law. From 27 Aug 2018, as published in the Federal Register under Public Notice 10519 , mandatory sanctions apply that include the termination of foreign assistance to Russia, termination of arms sales, arms sales financing, prohibition of US Government credit or other financial assistance and a ban on exports of national security-sensitive goods and technology. On 1 August 2019 OFAC issued EO13883, an amendment to EO12851 ,which relates to the CBW Act. W.ef. the 26 August 2019  the Russia Related Directive  will target Russian financial institutions in response to Russia’s use of the nerve agent Novichok in Salisbury in the UK in March 2018. On the 21 August 2021 OFAC reinforced arms and financial restrictions against Russia under the CBW Act 1991 in response to the  August 2020 poisoning of Alexey Navalny.  On 20 Sep 2018, EO 13849 was issued that authorises the implementation of certain CAATSA-related sanctions with respect to the Russian Federation and an additional 33 persons have been added to the list. Several General Licences issued and updated for certain activities and transactions. SDN List updated periodically. The national emergency declared under  EO 13660 in 2014 was further extended until 6 March 2022. On the 15 Apr 2021 OFAC issued EO Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation, in response to 2020 election interference and cyberattacks. On the  20 Aug2021 OFAC introduced, “Blocking Property with Respect to Certain Russian Energy Export Pipelines”, which allows the US to impose sanctions in connection with the Nord Stream 2 and TurkStream pipeline projects. On 21 February 2022 OFAC issued "Issuance of Executive Order Blocking Property Of Certain Persons And Prohibiting Certain Transactions With Respect To Continued Russian Efforts To Undermine The Sovereignty And Territorial Integrity Of Ukraine," following Russia’s recognition of the separatist Ukrainian regions of Donetsk People’s Republic (DNR) and Luhansk People’s Republic (LNR). The sanctions will apply to any contract entered into prior to 21 February 2022 (subject to any licences issued). The measures include a prohibition on new investment in the DNR and LNR regions; the importation into the US of any goods, services, or technology from the Covered Regions; the exportation, supply, from the US of any goods, services, or technology to the Covered Regions; blocking of all property and interests in the US or in the possessions or control of any US person (including foreign branches) so designated. On the 24 February 2022 OFAC  issued Russia-related Directive 2 under E.O. 14024, “Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions" and Directive 3 “Prohibitions Related to New Debt and Equity of Certain Russia-related Entities” prohibiting transactions and dealings by US person/entities with various Russian owned businesses and banks. On the 28 February OFAC issued Directive 4 under E.O. 14024, “Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation”, which prohibits all transactions involving named Russian banks. Additionally OFAC issued  General Licence 8A, which authorises, until 24 June 2022, certain energy-related transactions with the Russian Central Bank. On the 1 March 2022 OFAC  issued the Russian Harmful Foreign Activities Sanctions Regulations to implement E.O. 14024, ‘‘Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation.’’ On the 23 February the US terminated a sanctions waiver issued in May 2021 and imposed sanctions relating to Nord Stream 2 AG pursuant to PEESA and E.O. 14039, as well as issuing General Licence 4 to facilitate the winding down of transactions until 2 March 2022. On the 2 March the US expanded its export controls imposed on Russia to Belarus as well as a ban on Russian aircraft from entering/using US airspace. On the 8 March 2022 the US issued EO "Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts to Undermine the Sovereignty and Territorial Integrity of Ukraine" which bans the importation into the US of Russian: crude oil, petroleum; petroleum fuels, oils and products of their distillation, any new US investment in Russia’s energy sector and any financing / facilitation of a transaction by US entity of activities prohibited under this E.O. OFAC issued General Licence 16, which authorises the wind down of all transactions, until 22 April 2022, prohibited the by the new E.O. that are ordinarily necessary to the importation into the US of Russian crude oil pursuant to written contracts entered before 8 March 2022. 

On the 11 March 2022 the US issued, BIS Final Rule and "Executive Order on Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression," which expands EO 14024 and EO 14066 and EO 14068 banning new investment, import/ export of luxury goods and any products of Russian Federation origin. On the 31 March 2022 the US  issued a Determination which extends E.O. 14024 to the aerospace, electronics and marine sectors of the Russian economy. On the 8th May 2022 OFAC issued a Determination identifying accounting, trust and corporate formation and management consulting service sectors of the Russian economy as subject to sectoral sanctions pursuant to E.O. 14071. On the 11th May 2022 the Bureau of Industry and Security (BIS)  imposed restrictions on Russia’s industrial sector meaning additional licence requirements for exports, reexports or transfers (in-country) to and within Russia will be placed on a range of items with industrial and commercial applications, including wood products, industrial engines, boilers, motors, fans, ventilation equipment and bulldozers.

EU Council Reg 208/2014 assets freeze for designations (wef 6 Mar 2014) effected by EU 269/2014 (wef 17 Mar 2014), amended by Council Reg 783/2014, (wef 19 Jul 2014), amends criteria for listing, updated periodically and amended by (EU) Council Decision (CFSP) 2017/1547 which renews asset freeze and travel ban and adds Crimean sea ports to designated entities while including derogation for payments to those ports for certain services. On the 6 Sept 2019 sanctions against individuals and entities designated under Council Reg (EU) 268/2014 and Council Decision 2014/145/CFSP were extended until 30 Jan 2020. The EU further extended sanctions (asset freezes) stated under CFSP 2014/145 (and later amended by CFSP 2019/1405) for 6 months pursuant of CFSP 2020/399 until 15 Sept 2020; against individuals and entities who are said to be responsible for undermining the territorial integrity or sovereignty of Ukraine. All restrictive measures under (CFSP) 2014/145 were extended under (CFSP) 2021/448 until 15 September 2021  In September  2021 all restrictive measures under (CFSP) 2014/145 were extended  for a further 6 months pursuant to  (CFSP) 2021/1470 until 15 March 2022. Council Decision 2014/386/CFSP effective 23 Jun 2014 prohibits the import of goods originating in Crimea or Sevastopol, including related (re)insurance, unless granted a Certificate of Origin by the Government of Ukraine, renewed until 23 June 2019 by (CFSP) 2018/880EU adopted (CFSP) 2021/1010, amending and renewing CFSP 2014/386 until 23 June 2022. Effective from 25 July 2014, EU Implementing Regulation 810/2014 lists further individuals and entities subject to sanctions and include the commercial seaports of both Kerch and Sevastopol. Council Reg 825/2014, effective 30 Jul 2014, includes a ban on finance and investment in the sectors of transport, telecommunications and energy and the exploitation of natural resources in Crimea and Sevastopol and an export ban on key equipment and technology related to those sectors. Council Reg 833/2014 (wef 31 Jul 2014), includes a prohibition on EU nationals and companies buying or selling bonds, equity, or similar financial instruments with a maturity exceeding 90 days, issued by major state-owned Russian banks, development banks, their subsidiaries and those acting on their behalf (including services relating to the issuing of such financial instruments such as brokering); an arms embargo relating to the import and export of arms and related material from/to Russia. Also, a prohibition on the use of dual use goods and technology for military use in Russia or to Russian military end-users. Prohibition on the sale, supply, transfer or export of certain goods and technologies when destined for deep water/artic oil exploration and production or for shale oil projects and a prohibition to satisfy certain claims made by certain persons, entities and bodies. Reg 960/2014, (wef 12 Sep 2014), further restricts Russian access to EU capital markets by including a prohibition on EU nationals and companies buying or selling bonds, equity, or similar financial instruments with a maturity exceeding 30 days and also includes a prohibition on the provision of services for Russian deep water/artic oil exploration and production or for shale oil projects. Council Reg 1290/2014 (wef 5 Dec 2014) to clarify certain provisions in sanction measures. EU Commission issued a guidance note on 16 Dec 2014 to clarify the provisions issued in Jul 2014. Wef 20 Dec 2014, Reg 1351/2014 bans all foreign investment and associated services in Crimea or Sevastopol, services related to tourism including the maritime sector, prohibition on the sale, supply, transfer or export of goods in relation to transport, telecommunications, energy and the exploitation of oil, gas and minerals in Crimea and Sevastopol and ancillary services including direct or indirect financial services. EU published an FAQ on the implementation of its sanctions regime against Russia (October 2015). Russian sectoral sanctions added by EU 2014/512/CFSP to 31 Jul 2014 - Russian sectoral sanctions have been further extended  until 31 Jul 2019 under CFSP 2018/2078EU 2014/119/CFSP, which focused restrictive measures on the freezing and recovery of assets of persons as identified as responsible or the misappropriation of Ukrainian State Funds and persons responsible for human rights violations, was extended until 6 Mar 2019 by (CFSP) 2018/333, until 6th March 2020 by CFSP 2019/354 and then until 6 March 2021 by CFSP 2020/373. All restrictive measures stated under CFSP 2014/386 were renewed under CFSP 2020/850 until 23 June 2021. SDN List updated periodically. The UK passed the Chemical Weapons (Asset-Freezing) and Miscellaneous Amendments Regulation 2018, SI 2018/1090 which comes into force on the 7 Nov 2018. The regulation makes provision for UK enforcement of (EU) 2018/1542 and the EU's chemical weapons sanctions regime (CFSP) 2018/1544 and (CFSP) 2018/1542 . The EU prolonged sanctions stated in 2014/145 CFSP until 12 Mar 2019 under CFSP 2018/1237. These restrictive measures were extended further by 6 months until 12 Sept 2019 under CFSP 2019/415.  On the 19 Dec 2019 the EU prolonged the economic sanctions under CFSP 2019/2192  until 31 July 2020 which limit the access to EU primary and secondary capital markets for 5 major Russian majority state-owned financial institutions and their majority-owned subsidiaries established outside of the EU, as well as three major Russian energy and three defence companies; imposing an export and import ban on trade in arms; establishing an export ban for dual-use goods for military use or military end users in Russia; curtailing Russian access to certain sensitive technologies and services  that can be used for oil production and exploration. Restrictions under 2014/512/CFSP extended by CFSP 2019/2192 were further extended under (CFSP) 2020/907 until 31 Jan 2021. All restrictive measures under 2014/512/CFSP  were further extended until 31Jul 2021 under (CFSP) 2020/2143. Sectoral sanctions originally stated under CFSP 2014/512 were extended again by 6 months  until 31st Jan 2022 under CFSP 2021/1144. All restrictive measures under (CFSP) 2014/145 were extended under (CFSP) 2021/448 until 15 September 2021. The EU renewed its Russia sanctions regime for 6 months, until 31 July 2022 under CFSP 2022/52 On the 23 February 2022 the EU introduced a suite of restrictive measures which  prohibit the financing of Russia, its government and its Central Bank, designated 22 persons and four entities that played a role in undermining or threatening Ukrainian territorial integrity, (the four entities designated are the Internet Research Agency; Bank Rossiya; Promsvyazbank and VEB.RF), as well as the designation of 336 members of the Russian State Dumathat who voted in favour to recognise the separatist claimed Donetsk People’s Republic (DNR) and Luhansk People’s Republic (LNR) as independent states pursuant of CFSP 2022/264CFSP 2022/265, and CFSP 2022/267. Specifically under CFSP 2022/266 in relation to the non-government (Ukrainian) controlled areas of DNR and LNR, the EU have imposed restrictions on goods originating in those areas, the provision of finance or (re)insurance, trade in goods and technology for use in the non-government controlled areas and prohibits services in the transport, telecommunications and energy sectors as well as services related to tourism activities. It gives until the 24th May 2022 for the execution of any contracts concluded before the 23 February 2022 and prohibits the investment in, acquisition of and/or extension of any existing. On the 25 February restrictions and criteria originally stated under CFSP 269/2014 were expanded and amended for inclusion on the EU’s Russia sanctions list pursuant of (EU) 2022/330 and (EU) 2022/332 which designated various Russian officials including Vladamir Putin. Additionally, On 25 February the EU expanded 833/2014 under (CFSP) 2022/327 and (EU) 2022/328 aimed at cutting off Russian access to the most important capital markets and economic restrictions targeting the Russian defence, energy and aviation sectors. On the 28 February the EU adopted (CFSP) 2022/335 & (EU) 2022/334 which imposes a ban on any aircraft operated by Russian air carriers to land or fly by EU territory. On the 1 March the EU announced that as at 12 March 2022, 7 named Russian banks and any entity established in Russia and owned by more than 50% by one of the named banks, would be removed from SWIFT services under CFSP 2022/346 & EU 2022/345. Pursuant of CFSP 2022/351 &  (EU) 2022/350 the EU introduced restrictive measures prohibiting the broadcasting and the facilitation of broadcasting by designated media outlets. On the 9 March 2022 the EU issued CFSP 2022/395 & EU 2022/394 which prohibits the sale, and transfer of maritime navigation goods and technology to any person/entity in Russia and adds the Russian Maritime Register of Shipping to the list of state-owned enterprises subject to financial restrictions. On the 15 March 2022 EU 2022/428 and CFSP 2022/430 which introduces a ban on new investments in the Russian energy sector, an export restriction on equipment, technology and services for the energy industry in Russia (with the exception of the nuclear industry and the downstream sector of energy transport) and luxury goods. On the 8th April 2022 the EU adopted Council Regulation 2022/576 & CFSP 2022/578 which prohibits the purchase, import or transfer of coal and other solid fossil fuels into the EU if they originate in or are exported from Russia, as from August 2022. It also introduces further export restrictions to Russia, in particular on jet fuel. The restrictive measures further expand the restrictions on access to EU ports to vessels registered under the flag of Russia, however, derogations are granted for agricultural, humanitarian aid and energy. Restrictions are introduced on the continued execution of public contracts with Russian nationals and entities established in Russia as well as prohibitions for road transport undertakings established in Russia to transport goods by road in the Union.
UK
The Russia (Sanctions) (EU Exit) Regulations 2019 aim to encourage Russia to cease actions which destablise Ukraine, including actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. It imposes asset freezes on those identified as being involved in destablising Ukraine or undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. The UK regime diverges from the EU Russian sectoral sanctions program in a number of ways, however the regulation is designed to deliver substantially the same effect as existing EU sanctions. The divergence though, has implications for the insurance industry in that the UK's Russian sanctions regime uses the term 'financial services', the definition of which includes insurance related services, insurance, reinsurance, retrocession, insurance intermediation and services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services. The sanctions apply to a wide range of activities related to ‘energy related goods’, 'certain goods with military purposes' or 'certain uses in oil exploration'. They are applicable to the provision to ‘a person connected with Russia’, ‘for use in Russia’ or ‘to Russia’. This has drawn the scope wider than the EU regime and as a consequence, has ramifications for the provision of certain Russian energy-related insurance coverage. The UK regime exempts only UK-based subsidiaries from the prohibition on providing 'investment services' for, issuing credit for, or dealing with new bonds, equity and similar instruments issued by certain Russian banks, defence and energy companies. Noting the wider scope, effective from 11pm 31 December 2020, the Department of International Trade issued a general licence that permits the provision of technical assistance, financial services or funds, or brokering services concerning the activities specified in Regulations 43, 44, and 45 of the Russia Regulations where the relevant energy-related goods will not be directly or indirectly exported, delivered or made available for use in Russia, or where the relevant technical assistance will not be provided in relation to goods which are not for use in Russia. The UK regime only applies in respect of Russia and there is no country specific regime in respect of Ukraine. Instead the UK has put in effect the “Misappropriation (Sanctions) (EU Exit) Regulations 2020” which allows for sanctions to be put in place for persons involved in the misappropriation of state funds from a country outside the UK, although to date, no targets have been designated by the UK. On 10 February 2022, The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022 came into force. The regulations amend the designation criteria of which now includes those who have been involved in obtaining a benefit from or supporting the Government of Russia. On the 22 February 2022, following Russia’s recognition of the separatist Ukrainian regions of Donetsk People’s Republic (DNR) and Luhansk People’s Republic (LNR) the UK has announced sanctions against five Russian Banks and three individuals said to be close to President Putin. On the 25 February the UK designated Vladamir Putin The Russia (Sanctions) (EU Exit) Regulations 2019The Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022 expands the scope of existing prohibitions on financial institutions including issuing loans or credit.  On the 3 March the UK prohibited re/insurance to aviation and space sector. Additionally, on the 25 February, the UK imposed a ban on all Russian-registered aircraft “connected with Russia” from entering UK airspace pursuant under The Air Navigation (Restriction of Flying) (Russian Aircraft) Regulations 2022. On the 28 February the UK  removed Russia as a permitted destination from numerous open general export licences (OGELs) and suspended the approval of new export licences for dual-use items to Russia with immediate effect under The Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2022. On the 1 March 2022 OFSI issued The Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2022 which introduce new  shipping restrictions against Russia including the designation of vessels/ships, prohibiting access to UK ports by Russian ships and authorising the Secretary of State to control the movement of Russian ships. The Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2022 prohibits the provision of financial services for to The Central Bank of the Russian Federation;  the National Wealth Fund of the Russian Federation; the Ministry of Finance of the Russian Federation. OFSI have issued various General Licences detailing wind down periods for some designated entities.  On the 8 Mar 2022 the UK issued S.I. 2022/203 which prohibits re/insurance to aviation and space sector general licence for wind-down which gives until 28th March for contracts in force before the effective time and date of the sanctions. On 15th Mar 2022, the UK announced a ban on exports of high-end luxury goods to Russia, in line with similar actions taken by G7 countries and likely to affect luxury vehicles, high-end fashion and works of art. On the 23rd Mar 2022 the UK introduced The Customs (Additional Duty) (Russia and Belarus) Regulations 2022 which denies Most Favoured Nation (MFN) entitlement for key imports originating in Russia and Belarus, including vodka and antiques, and imposing an additional 35% tariff on specified products. On the 30th March 2022 introduced The Russia (Sanctions) (EU Exit) (Amendment) (No. 7) Regulations 2022 (S.I. 2022/395) which extends the power to designate people/entities “by description,” extends the existing finance, shipping and trade sanctions relating to Crimea to the non-government controlled areas of the Donetsk and Luhansk and a ban on the provision of aviation and shipping technical assistance. On the 5th April the Department for International Trade revised the General Licence to include aircraft and aeroengines and the provision of insurance services relating to aviation within the scope of the licence. Members will note that any person seeking to rely on the licence must register online via SPIRE within 30 days of their first use of the licenceOn the 14th April 2022 the UK introduced Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations which prohibits the sale or export to Russia of oil refining goods and technology, quantum computing and advanced materials goods and technology.  On 21st April 2022, the UK announced that it would impose import bans on an extended list of Russian goods, including silver, wood products and high-end products such as caviar as well a 35% tariff increase will be placed on approximately £130m worth of products from Russia and Belarus, including diamonds and rubber. On the 29th Apr 2022 the UK introduced Russia (Sanctions) (EU Exit) (Amendment) (No. 9) Regulations. The amendment regulations introduce new Russia trade sanctions which require social media services, to take reasonable steps to prevent content that is generated by a designated person/entity being seen by a UK-based user; internet access services, to take reasonable steps to prevent UK-based users from accessing websites provided by a designated person/entity; and application stores, to take reasonable steps to prevent UK-based users from downloading or otherwise accessing an application provided by a designated person/entity.
This information has been collated by the International Underwriting Association of London and is intended as a guide only. The IUA does not accept any liability for the accuracy of this information.
This publication is intended to convey only general information about sanctions legislation and associated insurance coverage. It is not, and is not intended to be, a complete statement of the law relating to this area. It should not be relied on or be used as a substitute for legal advice in relation to any particular set of circumstances. Accordingly, IUA does not accept any liability for any loss which may arise from reliance on this information.