PART 3Finance

CHAPTER 2Investment, financial services and financial markets

Investments in relation to crude oil and electricity productionI121

1

A person (“P”) must not directly or indirectly grant a loan or credit to a relevant entity (“E”), where P knows or has reasonable cause to suspect that E is a relevant entity.

2

A person (“P”) must not directly or indirectly acquire or extend a participation, or acquire any ownership interest, in a relevant entity (“E”), where P knows or has reasonable cause to suspect that E is a relevant entity.

3

A person (“P”) must not directly or indirectly create a joint venture with a relevant entity (“E”), where P knows or has reasonable cause to suspect that E is a relevant entity.

4

But paragraphs (1) to (3) are not contravened by anything done in compliance with a contract or agreement which—

a

relates to the exploration, production or refining of crude oil and which was concluded before 23 September 2011, or

b

relates to the construction or installation of a new power plant for electricity production and which was concluded before 19 January 2012.

5

Paragraphs (1) to (3) are subject to Part 7 (Exceptions and licences).

6

A person who contravenes a prohibition in paragraphs (1) to (3) commits an offence.

7

For the purposes of paragraphs (1) to (3), “a relevant entity” is any person connected with Syria (within the meaning of regulation 27(5)), who is engaged in—

a

the exploration, production or refining of crude oil, or

b

the construction or installation of a new power plant for electricity production.

8

In this regulation—

  • “crude oil” has the same meaning given to it in paragraph 3 in Part 2 of Schedule 2;

  • “exploration of crude oil” includes the exploration for, prospecting for and the management of crude oil reserves, as well as the provision of geological services in relation to such reserves;

  • “petroleum products” has the same meaning given to it in paragraph 4 in Part 2 of Schedule 2;

  • “refining of crude oil” means the processing, conditioning or preparation of oil for the production of petroleum products or any intermediate streams.