(This note is not part of the Regulations)
These Regulations amend the Ukraine (European Union Financial Sanctions) (No.3) Regulations 2014 (S.I. 2014/2054) (“the 2014 Regulations”). The 2014 Regulations make provision relating to the enforcement of Council Regulation (EU) No. 833/2014 dated 31 July 2014 (OJ L 229, 31.7.2014, p.1) concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (“the first Council Regulation”).
The first Council Regulation has been amended by Council Regulation (EU) No. 960/2014 dated 8 September 2014 (OJ L 271, 12.9.2014, p.3) (“the amending Regulation”). The amending Regulation includes a revised definition of transferable securities, and refers to investment services instead of brokering. The amending Regulation also includes measures prohibiting a person from dealing with transferable securities and money-market instruments with a maturity exceeding 30 days for, or on behalf of, persons, entities or bodies in the Russian financial, defence and energy sectors. This extends the prohibition in the first Council Regulation in respect of the same activities in relation to transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 1st August 2014. The amending Regulation also prohibits a person from making or being part of any arrangement to make loans or credits with those persons, entities or bodies.
Regulation 4 amends regulation 3 in the 2014 Regulations. The prohibitions in regulation 3 are now limited to dealing with transferable securities and money-market instruments issued during the period 2nd August 2014 to 15th September 2014 inclusive. Brokering is amended to investment services.
Regulation 5 inserts new regulations 3A and 3B in the 2014 Regulations.
Regulation 3A provides for prohibitions against dealing with transferable securities and money-market instruments for, or on behalf of, legal persons, entities or bodies listed in Annex III, V and VI to the first Council Regulation with a maturity exceeding 30 days, issued after 15th September 2014. The prohibitions include buying, selling, providing investment services relating to or assistance in the issuance of, or otherwise dealing in, transferable securities and money-market instruments.
Regulation 3B provides for a prohibition against making or being part of any arrangement to make loans or credits, after 15th September 2014, to any legal person, entity or body coming within regulation 3(2) or 3A(2) in the 2014 Regulations, other than in specified circumstances.
Regulation 6 makes it an offence to breach any of the prohibitions in regulations 3A or 3B in the 2014 Regulations, or to seek to circumvent those provisions.
A list of major credit institutions or other major institutions and legal persons, entities or bodies listed in Annex III, V and VI to the Council Regulation is available on the internet via: (https://www.gov.uk/government/publications/financial-sanctions-consolidated-list-of-targets) or can be obtained from Financial Sanctions, H.M. Treasury, 1 Horse Guards Road, London, SW1A 2HQ.
Further information is available from Financial Sanctions, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and on the H.M. Treasury website (www.gov.uk/government/organisations/hm-treasury).