2019 No. 855

Exiting The European Union

Sanctions

The Russia (Sanctions) (EU Exit) Regulations 2019

Made10th April 2019

Laid before Parliament11th April 2019

Coming into force in accordance with regulation 1(2) and (3)

The Secretary of State M1, in exercise of the powers conferred by sections 1(1)(c) and (3)(b), 3(1)(a), (b)(ii) and (iii), (c)(ii) and (iii), (d), (e)(iii), (g)(iii), (2)(b) and (c), 4, 5, 7(2) and (5), 9(2)(a), 10(2)(a) and (c), (3) and (4), 11(2) to (9), 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17(2) to (9), 19, 20, 21(1), 54(1) and (2)(a), 62(4) to (6) of, and paragraphs 2(a)(iii) and (b), 3(a) and (b), 4(a)(iii), (b) and (c), 5(a)(ii) and (iii) and (b), 6(a)(ii) and (iii) and (b), 7(a)(iii) and (b), 9, 10(b), 11(a)(ii) and (iii), 13(a), (b), (c), (g), (h), (i), (k), (l), (m), (n), (p), (q), (t), (v) and (w), 14(a), (e), (f) and (k), 17, 19 to 23 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018 M2, and having decided, upon consideration of the matters set out in section 2(2) of that Act, that it is appropriate to do so, makes the following Regulations:C1

Annotations:

Modifications etc. (not altering text)

Regulations extended (British overseas territories) (with modifications) (31.12.2020 immediately after both S.I. 2020/590 and S.I. 2020/951 have come into force) by The Russia (Sanctions) (Overseas Territories) Order 2020 (S.I. 2020/1571), arts. 1(1), 2, Schs. 1, 2 (as amended (11.3.2021) by The Russia (Sanctions) (Overseas Territories) (Amendment) Order 2021 (S.I. 2021/288), arts. 1(1), 2(2)); S.I. 2020/1514, regs. 4, 18

Marginal Citations

The power to make regulations under Part 1 of the Sanctions and Anti-Money Laundering Act 2018 is conferred on an “appropriate Minister”. Section 1(9)(a) of the Act defines an “appropriate Minister” as including the Secretary of State.

2018 c.13.

PART 1General

Citation and commencementI11

1

These Regulations may be cited as the Russia (Sanctions) (EU Exit) Regulations 2019.

2

Subject to paragraph (3), these Regulations come into force on exit day.

3

The following provisions of these Regulations come into force on the day after the day on which the Regulations are made—

a

this regulation;

b

regulation 2 (interpretation);

c

regulation 4 (purposes);

d

Part 2;

e

Schedule 1 (rules for interpretation of regulations 7(2) and 16(7)).

InterpretationI22

In these Regulations—

“the Act” means the Sanctions and Anti-Money Laundering Act 2018;
“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see paragraph 12 of Schedule 1 for the meaning of that term in that Schedule);
“CEMA” means the Customs and Excise Management Act 1979 M3;
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;
“conduct” includes acts and omissions;
“Crimea” means the Autonomous Republic of Crimea and the city of Sevastopol;
“document” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form;
“the EU Russia Regulations” means the following, as they have effect in EU law—
1. a
  Council Regulation (EU) No 269/2014 of 17 March 2014 (concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine) M4,
2. b
  Council Regulation (EU) No 692/2014 of 23 June 2014 (concerning restrictive measures in response to the illegal annexation of Crimea and Sevastopol) M5, and
3. c
  Council Regulation (EU) No 833/2014 of 31 July 2014 (concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine) M6;
“trade licence” means a licence under regulation 65;
“Treasury licence” means a licence under regulation 64(1); the “Ukraine Financial Sanctions Regulations” means—
1. a
  The Ukraine (European Union Financial Sanctions) (No.2) Regulations 2014 M7, and
2. b
  The Ukraine (European Union Financial Sanctions) (No.3) Regulations 2014 M8;
“United Kingdom person” has the same meaning as in section 21 of the Act;
“working day” means any day other than—
1. a
  Saturday or Sunday,
2. b
  Christmas Day or Good Friday, or
3. c
  a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.

Application of prohibitions and requirements outside the United KingdomI33

b

regulation 20 (immigration).

2

The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1).

In this regulation “relevant provision” means—

a

any provision of Part 3 or Part 5;

b

any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3 or Part 5.

7

Nothing in any sub-paragraph of paragraph (3) is to be taken to limit the meaning of any of the other sub-paragraphs of that paragraph.

Meaning of “owned or controlled directly or indirectly”I77

1

A person who is not an individual (“C”) is “owned or controlled directly or indirectly” by another person (“P”) if either of the following two conditions is met (or both are met).

2

The first condition is that P—

a

holds directly or indirectly more than 50% of the shares in C,

b

holds directly or indirectly more than 50% of the voting rights in C, or

c

holds the right directly or indirectly to appoint or remove a majority of the board of directors of C.

3

Schedule 1 contains provision applying for the purpose of interpreting paragraph (2).

4

The second condition is that it is reasonable, having regard to all the circumstances, to expect that P would (if P chose to) be able, in most cases or in significant respects, by whatever means and whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P's wishes.

1

Where the Secretary of State in accordance with regulation 8(6)(b) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential.

2

A person (“P”) who—

a

is provided with information that is to be treated as confidential in accordance with paragraph (1), or

b

otherwise obtains such information,

must not, subject to paragraph (3), disclose it if P knows, or has reasonable cause to suspect, that the information is to be treated as confidential.

3

The prohibition in paragraph (2) does not apply to any disclosure made by P with lawful authority.

4

For this purpose information is disclosed with lawful authority only if and to the extent that—

a

the disclosure is by, or is authorised by, the Secretary of State,

b

the disclosure is by or with the consent of the person who is or was the subject of the designation,

c

the disclosure is necessary to give effect to a requirement imposed under or by virtue of these Regulations or any other enactment, or

d

the disclosure is required, under rules of court, tribunal rules or a court or tribunal order, for the purposes of legal proceedings of any description.

5

This regulation does not prevent the disclosure of information that is already, or has previously been, available to the public from other sources.

6

A person who contravenes the prohibition in paragraph (2) commits an offence.

7

The High Court (in Scotland, the Court of Session) may, on the application of—

a

the person who is the subject of the information, or

b

the Secretary of State,

grant an injunction (in Scotland, an interdict) to prevent a breach of the prohibition in paragraph (2).

8

In paragraph (4)(c), “enactment” has the meaning given by section 54(6) of the Act.

PART 3Finance

CHAPTER 1Finance restrictions in relation to designated persons

Meaning of “designated person”I1010

In this Chapter a “designated person” means a person who is designated under regulation 5 for the purposes of regulations 11 to 15.

For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person.

A person who contravenes a prohibition in paragraph (1) or (3) commits an offence.

7

For the purposes of this regulation, and regulations 17 (loans and credit arrangements) and 59 (exceptions relating to loans and credit arrangements), a person (“C”) is “owned” by another person (“P”) if P—

a

holds directly or indirectly more than 50% of the shares in C, or

b

holds directly or indirectly more than 50% of the voting rights in C.

8

Schedule 1 applies for the purpose of interpreting paragraph (7).

9

For the purposes of this regulation, a reference to “dealing with” a transferable security or money-market instrument includes a reference to purchasing or selling the security or instrument, providing investment services relating to the security or instrument or assisting in the issuance of the security or instrument.

10

In this regulation—

“investment services” means—
1. a
  the reception and transmission of orders in relation to one or more financial instruments,
2. b
  the execution of orders on behalf of clients,
3. c
  dealing on own account,
4. d
  portfolio management,
5. e
  the provision of investment advice,
6. f
  the underwriting of financial instruments or placing of financial instruments on a firm commitment basis,
7. g
  the placing of financial instruments without a firm commitment basis, or
8. h
  any service in relation to the admission to trading on a regulated market or trading on a multilateral trading facility;
“money-market instrument” means an instrument of a kind normally dealt in on the money market, such as treasury bills, certificates of deposit and commercial papers, excluding instruments of payment;
“non-UK country” means a country that is not the United Kingdom;
“transferable security” means a security, negotiable on the capital market, of any of the following kinds, but excluding instruments of payment—
1. a
  shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares;
2. b
  bonds or other forms of securitised debt, including depositary receipts in respect of such securities;
3. c
  any other securities giving the right to purchase or sell any security of a kind mentioned in paragraph (a) or (b).

Loans and credit arrangementsI1717

1

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

2

A person must not directly or indirectly enter into any arrangement to grant a relevant loan if the person knows, or has reasonable cause to suspect, that the arrangement relates to a relevant loan.

3

Paragraphs (1) and (2) are subject to regulations 59 and 63 (exceptions).

4

A person who contravenes a prohibition in paragraph (1) or (2) commits an offence.

5

In this regulation—

“non-UK country” means a country that is not the United Kingdom;
“relevant loan” means a loan or credit—
1. a
  with a maturity exceeding 30 days,
2. b
  made or granted to a relevant person, and
3. c
  which is first made or granted at any time after F3IP completion day;
“relevant person” means—
1. a
  a person falling within Schedule 2;
2. b
  a person, other than an individual, which is—
  1. i
    incorporated or constituted under the law of a non-UK country, and
  2. ii
    owned (within the meaning of regulation 16(7)) by a person within sub-paragraph (a); or
3. c
  a person, other than an individual, acting on behalf or at the direction of a person within sub-paragraph (a) or sub-paragraph (b).

Investments in relation to CrimeaI1818

1

A person (“P”) must not carry on an activity mentioned in paragraph (2) if P knows, or has reasonable cause to suspect, that P is carrying on such an activity.

2

The activities in this paragraph are—

a

directly or indirectly acquiring or extending a participation, or acquiring any ownership interest, in land located in Crimea;

b

directly or indirectly acquiring or extending a participation, or acquiring any ownership interest in or control over, a relevant entity;

c

directly or indirectly granting any loan or credit, entering into any arrangement to grant any loan or credit, or otherwise providing funds, including for example equity capital—

i

to a relevant entity, or

ii

for the documented purpose of financing any such entity;

d

directly or indirectly establishing any joint venture—

i

in Crimea, or

ii

with a relevant entity;

e

providing investment services directly related to an activity referred to in sub-paragraphs (a) to (d) above.

3

Paragraph (1) is subject to Part 7 (Exceptions and licences).

4

A person who contravenes a prohibition in paragraph (1) commits an offence.

5

In this regulation—

“investment services” has the same meaning as it has in regulation 16;
“relevant entity” means a person, other than an individual, which has a place of business located in Crimea.

CHAPTER 3Further provision

Circumventing etc. prohibitionsI1919

1

A person must not intentionally participate in activities knowing that the object or effect of them is (whether directly or indirectly)—

a

to circumvent any of the prohibitions in regulations 11 to 18, or

b

to enable or facilitate the contravention of any such prohibition.

2

A person who contravenes the prohibition in paragraph (1) commits an offence.

PART 4Immigration

ImmigrationI2020

A person who is designated under regulation 5 for the purposes of this regulation is an excluded person for the purposes of section 8B of the Immigration Act 1971 M9.

PART 5Trade

CHAPTER 1Interpretation

Interpretation of this PartI2121

1

In this Part—

“brokering service” means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to)—
1. a
  the selection or introduction of persons as parties or potential parties to the arrangement,
2. b
  the negotiation of the arrangement,
3. c
  the facilitation of anything that enables the arrangement to be entered into, and
4. d
  the provision of any assistance that in any way promotes or facilitates the arrangement;
“dual-use goods” means—
1. a
  any thing for the time being specified in Annex I of the Dual-Use Regulation, other than any thing which is dual-use technology, and
2. b
  any tangible storage medium on which dual-use technology is recorded or from which it can be derived;
“the Dual-Use Regulation” means Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items;
“dual-use technology” means any thing for the time being specified in Annex I of the Dual-Use Regulation which is described as software or technology;
“energy-related goods” means any thing falling within Part 2 of Schedule 3;
“infrastructure-related goods” means any thing falling within Part 3 of Schedule 3;
“military goods” means—
1. a
  any thing for the time being specified in Schedule 2 to the Export Control Order 2008 M10, other than any thing which is military technology, and
2. b
  any tangible storage medium on which military technology is recorded or from which it can be derived;
“military technology” means any thing for the time being specified in Schedule 2 to the Export Control Order 2008 which is described as software or technology;
“technical assistance”, in relation to goods or technology, means—
1. a
  technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, or
2. b
  any other technical service relating to the goods or technology;
F4...
“transfer” has the meaning given in paragraph 37 of Schedule 1 to the Act.

2

For the purposes of this Part, a person is to be regarded as “connected with” Russia if the person is—

a

an individual who is, or an association or combination of individuals who are, ordinarily resident in Russia,

b

an individual who is, or an association or combination of individuals who are, located in Russia,

c

a person, other than an individual, which is incorporated or constituted under the law of Russia, or

d

a person, other than an individual, which is domiciled in Russia.

3

For the purposes of this Part, a person is to be regarded as “connected with” Crimea if the person is—

a

an individual who is, or an association or combination of individuals who are, ordinarily resident in Crimea,

b

an individual who is, or an association or combination of individuals who are, located in Crimea, or

c

a person, other than an individual, which has its registered office, central administration or principal place of business located in Crimea.

4

Paragraphs 32 to 36 of Schedule 1 to the Act (trade sanctions) apply for the purpose of interpreting expressions in this Part.

5

In this Part, any reference to the United Kingdom includes a reference to the territorial sea.

CHAPTER 2Military goods, military technology and related activities

Export of military goodsI2222

1

The export of military goods to, or for use in, Russia is prohibited.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

Import of arms and related materielI2323

1

The import of arms and related materiel which are consigned from Russia is prohibited.

2

The import of arms and related materiel which originate in Russia is prohibited.

3

Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences).

4

In this regulation “arms and related materiel” means—

a

military goods, and

b

any thing which falls within chapter 93 of the Goods Classification Table, other than military goods.

5

For the purposes of the definition of “arms and related materiel”, whether a thing “falls within chapter 93 of the Goods Classification Table” is to be interpreted in accordance with paragraph 1 of Schedule 3.

Supply and delivery of military goodsI2424

1

A person must not—

a

directly or indirectly supply or deliver military goods from a third country to a place in Russia;

b

directly or indirectly supply or deliver military goods from a place in Russia to a third country.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Russia;

b

it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was from a place in Russia, whether directly or indirectly.

4

In this regulation “third country” means a country that is not the United Kingdom, the Isle of Man or Russia.

Making available or acquiring military goods and military technologyI2525

1

A person must not—

a

directly or indirectly make military goods or military technology available to a person connected with Russia;

b

directly or indirectly make military goods or military technology available for use in Russia;

c

directly or indirectly acquire military goods or military technology from a person connected with Russia;

F5d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

directly or indirectly acquire military goods or military technology located in Russia.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with an offence of contravening paragraph (1)(a) or (c) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Russia;

b

it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Russia;

F6c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

it is a defence for a person charged with the offence of contravening paragraph (1)(e) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were located in Russia.

Transfer of military technologyI2626

1

A person must not—

a

transfer military technology to a place in Russia;

b

transfer military technology to a person connected with Russia;

c

transfer military technology to persons outside the United Kingdom or to a place outside the United Kingdom, where the transfer is from a place in Russia.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in Russia;

b

it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Russia;

c

it is a defence for a person charged with the offence of contravening paragraph (1)(c) to show that the person did not know and had no reasonable cause to suspect that the transfer was from a place in Russia.

Technical assistance relating to military goods and military technologyI2727

1

A person must not directly or indirectly provide technical assistance relating to military goods or military technology—

a

to a person connected with Russia, or

b

for use in Russia.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with an offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Russia;

b

it is a defence for a person charged with an offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Russia.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

Paragraphs (1) to F9(3) are subject to Part 7 (Exceptions and licences).

7

A person who contravenes a prohibition in any of paragraphs (1) F10to (3) commits an offence, but—

a

it is a defence for a person charged with an offence of contravening paragraph (1) F11or (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Russia;

b

it is a defence for a person charged with the offence of contravening paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph F12.

F13c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

brokering services in relation to an arrangement whose object or effect is to provide, in a non-UK country, anything mentioned in sub-paragraphs (a) to (c),

where such provision enables or facilitates the conduct of military activities carried on or proposed to be carried on by the Russian military or any other military end-user who is a person connected with Russia.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the provision as mentioned in paragraph (1) would enable or facilitate the conduct of military activities carried on or proposed to be carried on by the Russian military or any other military end-user who is a person connected with Russia.

4

In this regulation—

“non-UK country” means a country that is not the United Kingdom;
“technical assistance” means the provision of technical support or any other technical service.

5

Nothing in this regulation is to be taken to limit the meaning of any of the prohibitions contained in this Part.

CHAPTER 3Dual-use goods, dual-use technology and related activities

Interpretation of this ChapterI3131

For the purposes of this Chapter—

a

goods are “for military use” if they are—

i

for use by the Russian military or any other military end-user, or

ii

for any military use;

b

technology is “for military use” if it—

i

relates to military activities carried on or proposed to be carried on by the Russian military or any other military end-user, or

ii

is for any military use.

Export of dual-use goodsI3232

1

The export to Russia of dual-use goods for military use is prohibited.

2

The export of dual-use goods for military use in Russia is prohibited.

3

The export of dual-use goods to or for use by a person mentioned in Schedule 4 is prohibited.

4

Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences).

Supply and delivery of dual-use goodsI3333

1

A person must not—

a

directly or indirectly supply or deliver dual-use goods for military use from a third country to a place in Russia;

b

directly or indirectly supply or deliver dual-use goods from a third country to or for use by a person mentioned in Schedule 4.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that—

i

the goods were destined (or ultimately destined) for Russia, or

ii

the goods were for military use;

b

it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom, or for whose use, the goods were supplied or delivered was a person mentioned in Schedule 4.

4

In this regulation “third country” means a country that is not the United Kingdom, the Isle of Man or Russia.

Making dual-use goods and dual-use technology availableI3434

1

A person must not—

a

directly or indirectly make available, to a person connected with Russia, dual-use goods for military use or dual-use technology for military use;

b

directly or indirectly make available dual-use goods for military use in Russia or dual-use technology for military use in Russia;

c

directly or indirectly make dual-use goods available to or for use by a person mentioned in Schedule 4.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with an offence of contravening paragraph (1)(a)(“P”) to show that P did not know and had no reasonable cause to suspect that—

i

the person was connected with Russia, or

ii

the goods or technology were for military use;

b

c

it is a defence for a person charged with an offence of contravening paragraph (1)(c) (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom or for whose benefit the goods were made available was a person mentioned in Schedule 4.

Transfer of dual-use technologyI3535

1

A person must not—

a

transfer dual-use technology for military use to a place in Russia;

b

transfer dual-use technology for military use to a person connected with Russia;

c

transfer dual-use technology to a person mentioned in Schedule 4.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that—

i

the transfer was to a place in Russia, or

ii

the technology was for military use;

b

it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that—

i

the person was connected with Russia, or

ii

the technology was for military use;

c

it is a defence for a person charged with an offence of contravening paragraph (1)(c) (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom the technology was transferred was a person mentioned in Schedule 4.

Technical assistance relating to dual-use goods and dual-use technologyI3636

1

A person must not directly or indirectly—

a

provide technical assistance relating to dual-use goods for military use or dual-use technology for military use to a person connected with Russia;

b

provide technical assistance relating to dual-use goods for military use in Russia or dual-use technology for military use in Russia;

c

provide technical assistance relating to dual-use goods or dual-use technology to a person mentioned in Schedule 4;

d

provide technical assistance relating to dual-use goods or dual-use technology for use by a person mentioned in Schedule 4.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that—

i

the person was connected with Russia, or

ii

the goods or technology were for military use;

b

c

it is a defence for a person charged with the offence of contravening paragraph (1)(c) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was a person mentioned in Schedule 4;

d

it is a defence for a person charged with the offence of contravening paragraph (1)(d) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use by a person mentioned in Schedule 4.

it is a defence for a person charged with an offence of contravening a prohibition in paragraph (4) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph.

Brokering services: non-UK activity relating to dual-use goods and dual-use technologyI3838

ii

where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 37(3);

k

l

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

4

In this regulation—

“non-UK country” means a country that is not the United Kingdom;
“third country” means—
1. a
  for the purposes of paragraph (1)(a) and (c), a country that is not the United Kingdom, the Isle of Man or Russia,
2. b
  for the purposes of any other provision of paragraph (1), a country that is not the United Kingdom or Russia.

CHAPTER 4Energy-related goods and related activities

Interpretation of this ChapterI3939

For the purposes of this Chapter “Russia” includes Russia's exclusive economic zone and continental shelf (which terms are to be interpreted in accordance with the United Nations Convention on the Law of the Sea) M11.

Export of energy-related goodsI4040

1

The export of energy-related goods for use in Russia is prohibited.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

Supply and delivery of energy-related goodsI4141

1

A person must not directly or indirectly supply or deliver energy-related goods for use in Russia from a third country to a place in Russia.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

a

the goods were destined (or ultimately destined) for Russia, or

b

the goods were for use in Russia.

4

In this regulation “third country” means a country that is not the United Kingdom, the Isle of Man or Russia.

Making energy-related goods availableI4242

1

A person must not directly or indirectly make energy-related goods available for use in Russia.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

Technical assistance relating to energy-related goodsI4343

1

A person must not directly or indirectly—

a

provide technical assistance relating to energy-related goods for use in Russia; or

b

provide, to a person connected with Russia, technical assistance relating to energy-related goods.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes a prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with the offence in paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the goods were for use in Russia;

b

it is a defence for a person charged with the offence in paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Russia.

b

it is a defence for a person charged with an offence of contravening a prohibition in paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned that paragraph.

Brokering services: non-UK activity relating to energy-related goods and energy-related technologyI4545

1

A person (“P”) must not directly or indirectly provide brokering services in relation to an arrangement (“arrangement A”) whose object or effect is—

a

the direct or indirect supply or delivery of energy-related goods for use in Russia from a third country to a place in Russia;

b

directly or indirectly making energy-related goods available for use in Russia;

c

the direct or indirect provision, in a non-UK country, of technical assistance relating to energy-related goods—

i

to a person connected with Russia, or

ii

for use in Russia;

d

the direct or indirect provision, in a non-UK country, of financial services—

i

to a person connected with Russia, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 44(1) , or

ii

where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 44(3);

e

f

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

4

In this regulation—

“non-UK country” means a country that is not the United Kingdom;
“third country” means a country that is not the United Kingdom, the Isle of Man or Russia.

Prohibition on providing other energy-related servicesI4646

1

A person must not provide, directly or indirectly, relevant energy services.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

4

In this regulation—

“relevant energy services” means specified services necessary for a relevant oil exploration or production project;
“relevant oil exploration or production project” means a project in Russia within any of the following descriptions—
1. a
  oil exploration and production in waters deeper than 150 metres;
2. b
  oil exploration and production in the offshore area north of the Arctic Circle; or
3. c
  a project that has the potential to produce oil from resources located in shale formations by way of hydraulic fracturing, excluding exploration and production through shale formations to locate or extract oil from non-shale reservoirs;
“specified services” means any of the following—
1. a
  drilling;
2. b
  well testing;
3. c
  logging and completion services;
4. d
  supply of specialised floating vessels.

CHAPTER 5Exports and imports, and related activities, in relation to Crimea

Imports from CrimeaI4747

1

The import of goods which originate in Crimea is prohibited.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

Export of infrastructure-related goods to CrimeaI4848

1

The export of infrastructure-related goods to, or for use in, Crimea, is prohibited.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

Supply and delivery of infrastructure-related goodsI4949

1

A person must not directly or indirectly supply or deliver infrastructure-related goods from a third country to a place in Crimea.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

4

In this regulation, “third country” means a country that is not the United Kingdom, the Isle of Man or Crimea.

Making infrastructure-related goods availableI5050

1

A person must not—

a

directly or indirectly make infrastructure-related goods available to a person connected with Crimea;

i

to a person connected with Crimea, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 52(1), or

ii

where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 52(3) in relation to infrastructure-related goods,

f

directly or indirectly making funds available, in a non-UK country, to a person connected with Crimea, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 52(1), or

g

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

4

In this regulation—

“non-UK country” means a country that is not the United Kingdom;
“third country” means a country that is not the United Kingdom, the Isle of Man or Crimea.

CHAPTER 6Other services relating to Crimea

Prohibition on providing certain services relating to CrimeaI5454

1

A person must not provide—

a

services relating to a relevant infrastructure sector in Crimea; or

b

services relating to tourism in Crimea.

2

Paragraph (1) is subject to Part 7 (Exceptions and licences).

3

A person who contravenes the prohibition in paragraph (1) commits an offence, but—

a

it is a defence for a person charged with the offence in paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that P was providing services relating to a relevant infrastructure sector in Crimea;

b

it is a defence for a person charged with the offence in paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that P was providing services relating to tourism in Crimea.

4

In this regulation—

“services relating to a relevant infrastructure sector in Crimea” means technical assistance, brokering, construction or engineering services directly relating to infrastructure in Crimea in any of the following sectors—
1. a
  transport;
2. b
  telecommunications;
3. c
  energy;
4. d
  the prospection, exploration and production of oil, gas and mineral resources;
“technical assistance” means the provision of technical support or any other technical service.

CHAPTER 7Further provision

Circumventing etc. prohibitionsI5555

1

A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

a

to circumvent any of the prohibitions in Chapters 2 to 6 of this Part, or

b

to enable or facilitate the contravention of any such prohibition.

2

A person who contravenes a prohibition in paragraph (1) commits an offence.

DefencesI5656

c

accounts A and B are held or controlled (directly or indirectly) by P.

7

In this regulation—

“designated person” has the same meaning as it has in Chapter 1 Part 3 (Finance);
“frozen account” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person;
“relevant institution” means a person that has permission under Part 4A of the Financial Services and Markets Act 2000 M14 (permission to carry on regulated activity).

8

The definition of “relevant institution” in paragraph (7) is to be read with section 22 of the Financial Services and Markets Act 2000 M15, any relevant order under that section M16 and Schedule 2 to that Act M17.

Exceptions relating to loans and credit arrangementsI5959

1

The prohibitions in regulation 17 (loans and credit arrangements) are not contravened by the grant of—

a

a relevant loan that has a specific and documented objective of making funds available for non-restricted trade;

b

a relevant loan that has a specific and documented objective of making emergency funds available to meet applicable solvency or liquidity criteria for a relevant subsidiary;

c

a relevant loan consisting of a drawdown or disbursement made under an arrangement entered into before 15th September 2014, where the conditions in paragraph (2) are met.

2

The conditions referred to in paragraph (1)(c) are that—

a

all the terms and conditions of such drawdowns or disbursements—

i

were agreed before 15th September 2014;

ii

have not been modified on or after that date; and

b

a contractual maturity date has been fixed for the repayment in full of all funds made available and for the cancellation of all the rights and obligations under the arrangement.

3

In this regulation—

F14“non-restricted trade” means trade falling within any of the following descriptions, except to the extent that such trade is prohibited under these Regulations—
1. a
  the export of goods from the United Kingdom;
2. b
  the import of goods to the United Kingdom;
3. c
  services, other than financial services, which are provided—
  1. i
    from a place in the United Kingdom to a place in a non-UK country, or
  2. ii
    from a place in a non-UK country to a place in the United Kingdom;
F15“non-UK country” means a country that is not the United Kingdom;
“relevant loan” has the meaning given to it in regulation 17;
“relevant subsidiary” means a person, other than an individual, which is—
1. a
  incorporated or constituted under the law of any part of the United Kingdom, and
2. b
  owned (within the meaning of regulation 16(7)) by a person mentioned in paragraphs 1 to 5 of Schedule 2.

Exceptions relating to investments in relation to CrimeaI6060

1

The prohibitions in regulation 18 (investments in relation to Crimea) are not contravened by any act done by a person (“P”) in satisfaction of an obligation of P arising under a contract concluded before 20 December 2014, or an ancillary contract necessary for the satisfaction of such a contract, provided that P has notified the Treasury no later than the day five working days before the day on which the act is carried out.

2

The prohibitions in regulation 18 are not contravened by activities carried on by a person with entities outside Crimea where the related investment is not destined for an entity in Crimea.

Trade: exception for emergencies in certain casesI6161

1

The prohibitions in regulations 40 to F1646 (prohibitions relating to energy-related goods etc.) and regulations 48 to 54 (prohibitions relating to infrastructure in Crimea etc.) are not contravened by a person (“P”) where the P provides justification to the Secretary of State within the relevant period that the act is an act dealing with an emergency.

2

In this regulation—

“an act dealing with an emergency” means an act assisting with the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health or safety, infrastructure or the environment;
“relevant period”, in relation to an act, means the period of 5 working days beginning with the day on which the act is done.

Exception relating to trade restrictions in relation to CrimeaI6262

1

A prohibition in regulation 47 (imports from Crimea) or regulation 52(3)(a) (financial services and funds in relation to imports from Crimea) is not contravened by any action in relation to goods which—

a

originate in Crimea, and

b

are the subject of a certificate of origin.

2

In this regulation a “certificate of origin” means a document issued by the Government of Ukraine or a person acting on behalf of the Government of Ukraine confirming that the goods originate in Ukraine.

F2Exception for authorised conduct in a relevant country62A

1

Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 11 to 15 (asset-freeze etc.) and 18 (investments in relation to Crimea) or Chapters 2 to 6 of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

a

under the law of the relevant country, and

b

for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

2

In this regulation—

“relevant country” means—

a
any of the Channel Islands,
b
the Isle of Man, or
c
any British overseas territory.

Exception for acts done for purposes of national security or prevention of serious crimeI6363

1

Where an act would, in the absence of this paragraph, be prohibited by regulation 9(2)(confidentiality) or any prohibition in Part 3 (Finance) or 5 (Trade), or under or by virtue of Part 6 (Ships) that prohibition does not apply to the act if the act is one which a responsible officer has determined would be in the interests of—

a

b

be of indefinite duration or a defined duration.

5

A person who issues a licence may vary, revoke or suspend it at any time.

6

A person who issues, varies, revokes or suspends a licence which authorises acts by a particular person must give written notice to that person of the issue, variation, revocation or suspension of the licence.

7

A person who issues, varies, revokes or suspends a general licence or a licence which authorises acts by persons of a particular description must take such steps as that person considers appropriate to publicise the issue, variation, revocation or suspension of the licence.

Finance: licensing offencesI6767

1

A person (“P”) commits an offence if P knowingly or recklessly—

a

provides information that is false in a material respect, or

b

provides or produces a document that is not what it purports to be,

for the purpose of obtaining a Treasury licence (whether for P or anyone else).

2

A person who purports to act under the authority of a Treasury licence but who fails to comply with any condition of the licence commits an offence.

Trade: licensing offencesI6868

1

A person (“P”) commits an offence if P knowingly or recklessly—

a

provides information that is false in a material respect, or

b

provides or produces a document that is not what it purports to be,

for the purpose of obtaining a trade licence (whether for P or anyone else).

2

A person who purports to act under the authority of a trade licence but who fails to comply with any condition of the licence commits an offence.

3

A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

In paragraph (1)—

“estate agency work” is to be read in accordance with section 1 of the Estate Agents Act 1979 M21, but as if references in that section to disposing of or acquiring an interest in land included (despite anything in section 2 of that Act) references to disposing of or acquiring an estate or interest in land outside the United Kingdom where that estate or interest is capable of being owned or held as a separate interest;
“firm” means any entity that, whether or not a legal person, is not an individual, and includes a body corporate and a partnership or other unincorporated body.

4

Paragraph (1)(a) and (b) is to be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act.

5

For the purposes of regulation 70(1), information or another matter comes to a relevant firm “in the course of carrying on its business” if the information or other matter comes to the firm—

a

in the case of a relevant firm within paragraph(1)(a), in the course of carrying on an activity in respect of which the permission mentioned in that provision is required;

b

in the case of a relevant firm within paragraph (1)(c)(i), in the course of carrying out statutory audit work within the meaning of section 1210 of the Companies Act 2006 (meaning of statutory auditor) M22;

c

in the case of a relevant firm within paragraph (1)(c)(ii), in the course of carrying out an audit required by the Local Audit and Accountability Act 2014;

d

in the case of a relevant firm within paragraph (1)(f), in the course of carrying on an activity in respect of which the licence mentioned in that provision is required;

e

in the case of a relevant firm within any other provision of paragraph (1), in the course of carrying on an activity mentioned in that provision.

1

A request under regulation 72 may include a request to produce specified documents or documents of a specified description.

2

Where the Treasury request that documents be produced, the Treasury may—

a

d

otherwise intentionally obstructs the Treasury in the exercise of their powers under regulation 72 or 73.

2

Where a person is convicted of an offence under this regulation, the court may make an order requiring that person, within such period as may be specified in the order, to comply with the request.

Trade: application of information powers in CEMAI7575

1

Section 77A of CEMA M23 applies in relation to a person carrying on a relevant activity as it applies in relation to a person concerned in the importation or exportation of goods but as if—

a

in subsection (1), the reference to a person concerned in the importation or exportation of goods for which for that purpose an entry is required by regulation 5 of the Customs Controls on Importation of Goods Regulations 1991 M24 or an entry or specification is required by or under CEMA were to a person carrying on a relevant activity;

b

any other reference to importation or exportation were to a relevant activity;

c

any reference to goods were to the goods, technology, services or funds to which the relevant activity relates.

2

For the purposes of paragraph (1), a “relevant activity” means an activity—

a

which would, unless done under the authority of a trade licence, constitute a contravention of any prohibition in Chapters 2 to 6 of Part 5 (Trade), except any prohibition on imports or exports, or

b

which would constitute a contravention of the prohibition in regulation 55(1) (circumventing etc. prohibitions).

General trade licences: recordsI7676

1

This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 65 (trade licences) (“the licence”).

2

P must keep a register or record containing such details as may be necessary to allow the following information to be identified in relation to each act done under the authority of the licence—

a

a description of the act;

b

a description of any goods, technology, services or funds to which the act relates;

c

the date of the act or the dates between which the act took place;

d

the quantity of any goods or funds to which the act relates;

e

P's name and address;

f

the name and address of any consignee of goods to which the act relates or any recipient of technology, services or funds to which the act relates;

g

in so far as it is known to P, the name and address of the end-user of the goods, technology, services or funds to which the act relates;

h

if different from P, the name and address of the supplier of any goods to which the act relates;

i

any further information required by the licence.

3

The register or record relating to an act must be kept until the end of the calendar year in which the register or record is created and for a further period of 4 years from the end of that calendar year.

4

P must notify the Secretary of State in writing of P's name and the address at which the register or record may be inspected, and must make a further such notification if those details change.

5

A notification under paragraph (4) must be given no later than 30 days after—

a

P first does any act authorised by the licence, or

b

there is any change to the details previously notified.

6

A person who fails to comply with a requirement in paragraph (2), (3) or (4) commits an offence.

General trade licences: inspection of recordsI7777

1

A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 76(4) for the purposes of monitoring compliance with or detecting evasion of regulation 76(2) or (3).

2

An official may require any person on the premises to produce any register or record required to be kept under regulation 76, or any document included in such a register or record, that is in the person's possession or control.

3

An official may inspect and copy any such register, record or document.

4

An official must, if requested to do so, produce documentary evidence that he or she is authorised to exercise a power conferred by this regulation.

5

A person commits an offence if, without reasonable excuse, the person—

a

intentionally obstructs an official in the performance of any of the official's functions under this regulation, or

b

fails to produce a register, record or document when reasonably required to do so by an official under this regulation.

1

A disclosure of information under regulation 78 does not breach any restriction on such disclosure imposed by statute or otherwise.

2

But nothing in that regulation authorises a disclosure that—

a

contravenes the data protection legislation, or

b

is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016 M26.

3

Nothing in this Part is to be read as requiring a person who has acted or is acting as counsel or solicitor for any person to disclose any privileged information in their possession in that capacity.

4

Regulation 78 does not limit the circumstances in which information may be disclosed apart from that regulation.

5

Nothing in this Part limits any conditions which may be contained in a Treasury licence or a trade licence.

6

In this regulation—

“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act) M27;
“privileged information” means information with respect to which a claim to legal professional privilege (in Scotland, to confidentiality of communications) could be maintained in legal proceedings.

5

In relation to an offence committed before F1paragraph 24(2) of Schedule 22 to the Sentencing Act 2020 comes into force the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to 12 months is to be read as a reference to 6 months.

Liability of officers of bodies corporate etc.I8181

1

Where an offence under these Regulations , committed by a body corporate—

a

is committed with the consent or connivance of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, or

b

is attributable to any neglect on the part of any such person,

that person as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.

2

In paragraph (1) “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

3

Paragraph (1) also applies in relation to a body that is not a body corporate, with the substitution for the reference to a director of the body of a reference—

a

in the case of a partnership, to a partner;

b

in the case of an unincorporated body other than a partnership—

i

where the body's affairs are managed by its members, to a member of the body;

ii

in any other case, to a member of the governing body.

4

Section 171(4) of CEMA (which is a provision similar to this regulation) does not apply to any offence under these Regulations to which that provision would, in the absence of this paragraph, apply.

in such sheriff court district as the Lord Advocate may determine.

4

In paragraph (3) “sheriff court district” is to be read in accordance with the Criminal Procedure (Scotland) Act 1995 (see section 307(1) of that Act) M28.

Procedure for offences by unincorporated bodiesI8383

1

Paragraphs (2) and (3) apply if it is alleged that an offence under these Regulations has been committed by an unincorporated body (as opposed to by a member of the body).

2

Proceedings in England and Wales or Northern Ireland for such an offence must be brought against the body in its own name.

3

For the purposes of proceedings, for such an offence brought against an unincorporated body—

a

rules of court relating to the service of documents have effect as if the body were a body corporate;

b

the following provisions apply as they apply in relation to a body corporate

i

section 33 of the Criminal Justice Act 1925 M29 and Schedule 3 to the Magistrates' Courts Act 1980 M30;

ii

section 18 of the Criminal Justice Act (Northern Ireland) 1945 M31 and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 M32.

4

A fine imposed on an unincorporated body on its conviction of an offence under these Regulations is to be paid out of the funds of the body.

Time limit for proceedings for summary offencesI8484

1

Proceedings for an offence under these Regulations which is triable only summarily may be brought within the period of 12 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to the prosecutor's knowledge.

2

But such proceedings may not be brought by virtue of paragraph (1) more than 3 years after the commission of the offence.

3

ii

the reference to the place from which any goods have been brought included a reference to the place to which goods have been exported, supplied or delivered or the place to or from which technology has been transferred.

6

The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 M36 (legal proceedings).

Trade offences in CEMA: modification of penaltyI8686

1

Paragraph (2) applies where a person is guilty of an offence under section 50(2) of CEMA in connection with a prohibition mentioned in regulations 23 or 47(1) (imports).

2

Where this paragraph applies, the reference to 7 years in section 50(4)(b) of CEMA M37 is to be read as a reference to 10 years.

3

Paragraph (4) applies where a person is guilty of an offence under section 68(2) of CEMA in connection with a prohibition mentioned in regulations 22(1), 32, 40(1) or 48 (exports).

4

Where this paragraph applies, the reference to 7 years in section 68(3)(b) of CEMA M38 is to be read as a reference to 10 years.

5

Paragraph (6) applies where a person is guilty of an offence under section 170(2) of CEMA in connection with a prohibition mentioned in regulation 22(1), 23, 32, 40(1), 47(1) or 48 (exports and imports).

6

Where this paragraph applies, the reference to 7 years in section 170(3)(b) of CEMA M39 is to be read as a reference to 10 years.

Application of Chapter 1 of Part 2 of Serious Organised Crime and Police Act 2005I8787

Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers) M40 applies to any offence under Part 3 (Finance) or regulation 67 (finance: licensing offences).

Monetary penaltiesI8888

Each provision in Part 5 (Trade) which contains a prohibition imposed for a purpose mentioned in section 3(1) or (2) of the Act is to be regarded as not being financial sanctions legislation for the purposes of Part 8 of the Policing and Crime Act 2017 M41.

PART 10Maritime enforcement

Exercise of maritime enforcement powersI8989

1

A maritime enforcement officer may, for a purpose mentioned in paragraph (2) or (3), exercise any of the maritime enforcement powers in relation to—

a

a British ship in foreign waters or international waters,

b

a ship without nationality in international waters, or

c

a foreign ship in international waters,

and a ship within sub-paragraph (a), (b) or (c) is referred to in this Part as “a relevant ship”.

2

The maritime enforcement powers may be exercised for the purpose of enforcing any of the following—

a

a prohibition in any of regulations 22 to 26 (trade sanctions relating to military goods and military technology);

b

a prohibition in any of regulations 32 to 35 (trade sanctions relating to dual-use goods and dual-use technology);

c

a prohibition in any of regulations 40 to 42 (trade sanctions relating to energy-related goods);

d

a prohibition in any of regulation 47 to 50 (exports and imports etc.. in relation to Crimea);

e

a prohibition imposed by a condition of a trade licence in relation to a prohibition mentioned in sub-paragraph (a) to (d).

3

The maritime enforcement powers may also be exercised in relation to a relevant ship for the purpose of—

a

investigating the suspected carriage of relevant goods on the ship, or

b

preventing the continued carriage on the ship of goods suspected to be relevant goods.

4

In this Part, “the maritime enforcement powers” are the powers conferred by regulations 91 and 92.

5

This regulation is subject to regulation 93 (restrictions on exercise of maritime enforcement powers).

Maritime enforcement officersI9090

1

The following persons are “maritime enforcement officers” for the purposes of this Part—

a

a commissioned officer of any of Her Majesty's ships;

b

a member of the Ministry of Defence Police (within the meaning of section 1 of the Ministry of Defence Police Act 1987 M42);

c

a constable—

i

who is a member of a police force in England and Wales,

ii

within the meaning of section 99 of the Police and Fire Reform (Scotland) Act 2012 M43, or

iii

who is a member of the Police Service of Northern Ireland or the Police Service of Northern Ireland Reserve;

d

a special constable—

i

appointed under section 27 of the Police Act 1996 M44,

ii

appointed under section 9 of the Police and Fire Reform (Scotland) Act 2012, or

iii

in Northern Ireland, appointed by virtue of provision incorporating section 79 of the Harbours, Docks, and Piers Clauses Act 1847 M45;

e

a constable who is a member of the British Transport Police Force;

f

a port constable, within the meaning of section 7 of the Marine Navigation Act 2013 M46, or a person appointed to act as a constable under provision made by virtue of section 16 of the Harbours Act 1964 M47;

g

a designated customs official within the meaning of Part 1 of the Borders, Citizenship and Immigration Act 2009 (see section 14(6) of that Act) M48;

h

a designated NCA officer who is authorised by the Director General of the National Crime Agency (whether generally or specifically) to exercise the powers of a maritime enforcement officer under this Part.

2

In this regulation, “a designated NCA officer” means a National Crime Agency officer who is either or both of the following—

a

an officer designated under section 10 of the Crime and Courts Act 2013 M49 as having the powers and privileges of a constable;

b

an officer designated under that section as having the powers of a general customs official.

The officer may exercise the power conferred by paragraph (3)(a)(ii) in relation to a person only where the officer has reasonable grounds to believe that the person might use a thing to cause physical injury or damage to property or to endanger the safety of any ship.

7

The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Seizure powerI9292

1

This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 91 or otherwise).

2

The officer may seize any of the following which are found on the ship, in any thing found on the ship, or on any person found on the ship—

a

goods which the officer has reasonable grounds to suspect are prohibited goods or relevant goods, or

b

things within regulation 91(3)(a)(ii).

3

The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Restrictions on exercise of maritime enforcement powersI9393

1

The authority of the Secretary of State is required before any maritime enforcement power is exercised in reliance on regulation 89 in relation to—

a

a British ship in foreign waters, or

b

a foreign ship in international waters.

2

In relation to a British ship in foreign waters other than the sea and other waters within the seaward limits of the territorial sea adjacent to any relevant British possession, the Secretary of State may give authority under paragraph (1) only if the State in whose waters the power would be exercised consents to the exercise of the power.

3

The Secretary of State may give authority under paragraph (1) only if—

a

the home state has requested the assistance of the United Kingdom for a purpose mentioned in regulation 89(2) or (3),

b

the home state has authorised the United Kingdom to act for such a purpose, or

c

the United Nations Convention on the Law of the Sea 1982 or a UN Security Council Resolution otherwise permits the exercise of the power in relation to the ship.

Interpretation of Part 9I9494

6

In this regulation—

“proper officer”—
1. a
  in relation to a body other than a partnership, means the secretary or other executive officer charged with the conduct of the body's general affairs, and
2. b
  in relation to a partnership, means a partner or a person who has the control or management of the partnership business;
“registered company” means a company registered under the enactments relating to companies for the time being in force in the United Kingdom.

Article 20 of the Export Control Order 2008I9696

Article 20 of the Export Control Order 2008 (embargoed destinations) is not to be taken to prohibit anything prohibited by Part 5 (Trade).

Trade: overlapping offencesI9797

A person is not to be taken to commit an offence under the Export Control Order 2008 if the person would, in the absence of this regulation, commit an offence under both—

a

article 34, 35, 37 or 38 of that Order, and

b

any provision of Part 5 (Trade) or regulation 68 (trade: licensing offences), 76(6) (general trade licences: records) or 77(5) (general trade licences: inspection of records).

Revocations of relevant retained EU lawI9898

The following are revoked—

a

Council Regulation (EU) No 269/2014 of 17 March 2014 (concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine) M50;

b

Council Regulation (EU) No 692/2014 of 23 June 2014 (concerning restrictive measures in response to the illegal annexation of Crimea and Sevastopol) M51;

c

Council Regulation (EU) No 833/2014 of 31 July 2014 (concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine) M52.

Other revocations and amendmentsI9999

1

The Ukraine Financial Sanctions Regulations are revoked.

2

The Export Control (Russia, Crimea and Sevastopol Sanctions) Order 2014 M53 is revoked.

Transitional provision: Treasury licencesI100100

1

Paragraphs (2) to (4) apply to a licence which—

a

was granted, or deemed to be granted, by the Treasury under the Ukraine Financial Sanctions Regulations,

b

was in effect immediately before F19IP completion day, and

c

authorises an act which would (on and after F19IP completion day, and in the absence of paragraphs (2) to (4)) be prohibited by Part 3 (Finance),

and such a licence is referred to in this regulation as “an existing financial sanctions licence”.

2

An existing financial sanctions licence has effect on and after F19IP completion day as if it had been issued by the Treasury under regulation 64(1) (Treasury licences).

3

Any reference in an existing financial sanctions licence to the Ukraine Financial Sanctions Regulations is to be treated on and after F19IP completion day as a reference to these Regulations.

4

Any reference in an existing financial sanctions licence to a prohibition in—

a

the Ukraine Financial Sanctions Regulations, or

b

the EU Russia Regulations,

is to be treated on and after F19IP completion day as a reference to the corresponding prohibition in Part 3 (Finance).

5

Paragraph (6) applies where—

Paragraphs (4) to (6) apply to a licence or authorisation granted by the Secretary of State which—

a

was in effect immediately before F20IP completion day, F21...

F22aa

is not an existing trade licence, and

b

authorises an act—

i

which would otherwise be prohibited by the EU Russia Regulations, and

ii

which would (on or after F20IP completion day), and in the absence of Paragraphs (4) to (6), be prohibited by Part 5 (Trade),

and such a licence or authorisation is referred to in this regulation as “an existing trade sanctions licence”.

4

An existing trade sanctions licence has effect on and after F20IP completion day as if it were a licence which had been issued by the Secretary of State under regulation 65 (trade licences).

5

Any reference in an existing trade sanctions licence to a provision of the Export Control (Russia, Crimea and Sevastopol Sanctions) Order 2014 or the Export Control Order 2008 is to be treated on and after F20IP completion day as a reference to the corresponding provision of these Regulations (if any).

6

Any reference in an existing trade sanctions licence to a prohibition in the EU Russia Regulations is to be treated on and after F20IP completion day as a reference to the corresponding prohibition in Part 5 (Trade).

Transitional provision: pending applications for trade licencesI102102

1

Paragraph (2) applies where—

a

an application was made before F23IP completion day for a licence or authorisation under or pursuant to the Export Control Order 2008 or the Dual-Use Regulation,

b

the application is for authorisation of an act prohibited by Part 5 (Trade), and

c

a decision to grant or refuse the application has not been made before F23IP completion day.

2

The application is to be treated on and after F23IP completion day as including an application for a licence under regulation 65 (trade licences).

3

Paragraph (4) applies where—

a

c

paragraph 8 of Schedule 5 (prior obligations).

3

In this regulation, “designated person” has the same meaning as it has in Chapter 1 of Part 3 (finance restrictions in relation to designated persons).

Alan Duncan Minister of State Foreign and Commonwealth Office

In relation to a person who does not have a share capital—

a

a reference to holding shares in that person is to holding a right or rights to share in the capital or, as the case may be, profits of that person;

b

a reference to holding “more than 50% of the shares” in that person is to holding a right or rights to share in more than 50% of the capital or, as the case may be, profits of that person.

Voting rightsI1085

1

A reference to the voting rights in a person is to the rights conferred on shareholders in respect of their shares (or, in the case of a person not having a share capital, on members) to vote at general meetings of the person on all or substantially all matters.

2

In relation to a person that does not have general meetings at which matters are decided by the exercise of voting rights—

a

a reference to holding voting rights in the person is to be read as a reference to holding rights in relation to the person that are equivalent to those of a person entitled to exercise voting rights in a company;

b

a reference to holding “more than 50% of the voting rights” in the person is to be read as a reference to holding the right under the constitution of the person to block changes to the overall policy of the person or to the terms of its constitution.

I1096

In applying regulations 7(2) and 16(7) and this Schedule, the voting rights in a person are to be reduced by any rights held by the person itself.

Rights to appoint or remove members of the boardI1107

A reference to the right to appoint or remove a majority of the board of directors of a person is to the right to appoint or remove directors holding a majority of the voting rights at meetings of the board on all or substantially all matters.

I1118

A reference to a board of directors, in the case of a person who does not have such a board, is to be read as a reference to the equivalent management body of that person.

1

Where a person controls a right, the right is to be treated as held by that person (and not by the person who in fact holds the right, unless that person also controls it).

2

A person “controls” a right if, by virtue of any arrangement between that person and others, the right is exercisable only—

a

by that person,

b

in accordance with that person's directions or instructions, or

c

with that person's consent or concurrence.

I11512

“Arrangement” includes—

a

any scheme, agreement or understanding, whether or not it is legally enforceable, and

b

any convention, custom or practice of any kind.

Rights exercisable only in certain circumstances etc.I11613

2

For the purposes of determining whether or not a thing is, or would be, “classified” in accordance with sub-paragraph (1), the rules of interpretation contained in the following have effect—

a

Part Two (Goods Classification Table Rules of Interpretation) of the Tariff of the United Kingdom;

b

notes to a section or chapter of the Goods Classification Table.

3

For the purposes of this paragraph—

“commodity code” includes a code denoting a heading or sub-heading;
“the Goods Classification Table” means the table so named in Annex Ⅰ in Part Three of the Tariff of the United Kingdom;
“the Tariff of the United Kingdom” means the document containing the legal classification and import rate for products being imported into the United Kingdom, entitled “The Tariff of the United Kingdom”, as revised or re-issued from time to timeM56F25, including by any document published under regulations made under section 8(1) of the Taxation (Cross-border Trade) Act 2018 replacing the same in whole or in part.

PART 2Energy-related goods

I1302

Any thing falling within the following commodity codes—

7304 11 00
7304 19 10
7304 19 30
7304 19 90
7304 22 00
7304 23 00
7304 29 10
7304 29 30
7304 29 90
7305 11 00
7305 12 00
7305 19 00
7305 20 00
7306 11
7306 19
7306 21 00
7306 29 00
8207 13 00
8207 19 10
8413 82 00
8413 92 00
8430 49 00
8705 20 00
8905 20 00
8905 90 10

I1313

Any thing falling—

a

within a commodity code mentioned in column 1 of the following table; and

b

within the description in column 2 beside that code.

Code	Description
ex 8413 50	Reciprocating positive displacement pumps for liquids, power-driven with a maximum flow-rate greater than 18 m 3 /hour and a maximum outlet pressure greater than 40 bar, specially designed to pump drilling muds and/or cement into oil wells
ex 8413 60	Rotary positive displacement pumps for liquids, power-driven with a maximum flow-rate greater than 18 m 3 /hour and a maximum outlet pressure greater than 40 bar, specially designed to pump drilling muds and/or cement into oil wells
ex 8431 39 00	Parts suitable for use solely or principally with the oil field machinery of heading 8428
ex 8431 43 00	Parts suitable for use solely or principally with the oil field machinery of subheadings 8430 41 or 8430 49
ex 8431 49	Parts suitable for use solely or principally with the oil field machinery of heading 8426, 8429 and 8430

PART 3Infrastructure-related goods

I1324

Any thing falling within the following chapters—

a

chapters 25 to 29;

b

chapters 72 to 76;

c

chapters 78 to 81;

d

chapter 86;

e

chapters 88 and 89; and

f

chapter 98.

I1335

Any thing falling within the following commodity codes—

3824
3826 00
8207 13 00
8207 19 10
8401 to 8418
8420 to 8432
8435 to 8437
8439 to 8443
8444 00
8445
8447
8448
8449 00 00
8450
8452 to 8468
8470 to 8484
8486
8487
8501 to 8505
8507
8511
8514
8515
8525 to 8548
8701
8702
8704
8705
8706 00
8709
8710 00 00
8716
7106 to 7112
9013 to 9015
9025 to 9033

SCHEDULE 4Persons named in relation to dual-use items restrictions

Regulations 32 to 38

I1341

JSC Sirius

I1352

OJSC Stankoinstrument

I1363

OAO JSC Chemcomposite

I1374

JSC Kalashnikov

I1385

JSC Tula Arms Plant

I1396

NPK Technologii Maschinostrojenija

I1407

OAO Wysokototschnye Kompleksi

I1418

OAO Almaz Antey

I1429

OAO NPO Bazalt

SCHEDULE 5Treasury licences: purposes

Regulation 64(2)

PART 1Asset-freeze etc.

InterpretationI1431

In this Part of this Schedule—

“designated person” has the same meaning as it has in Chapter 1 of Part 3 (finance restrictions in relation to designated persons);
“frozen funds or economic resources” means funds or economic resources frozen by virtue of regulation 11, and any reference to a person's frozen funds or economic resources is to funds or economic resources frozen as a consequence of the designation of that person for the purpose of that regulation.

Basic needsI1442

1

To enable the basic needs of a designated person, or (in the case of an individual) any dependent family member of such a person, to be met.

2

In the case of an individual, in sub-paragraph (1) “basic needs” includes—

a

medical needs;

b

needs for—

i

food;

ii

F26payment of insurance premiums;

iii

F27payment of tax;

iv

rent or mortgage payments;

v

utility payments.

3

In the case of a person other than an individual, in sub-paragraph (1) “basic needs” includes needs for—

a

c

the use of the frozen funds or economic resources does not directly or indirectly benefit any other designated person.

Extraordinary situationI1497

To enable anything to be done to deal with an extraordinary situation.

Prior obligationsI1508

To enable, by the use of a designated person's frozen funds or economic resources, the satisfaction of an obligation of that person (whether arising under a contract, other agreement or otherwise), provided that—

a

the obligation arose before the date on which the person became a designated person, and

b

no payments are made to another designated person, whether directly or indirectly.

Consular postsI1519

1

To enable anything to be done in order that the functions of a consular post in Crimea, or of an international organisation enjoying immunities in accordance with international law, may be carried out.

2

In this paragraph, “consular post” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963 M57, and any reference to the functions of a consular post is to be read in accordance with that Convention.

PART 2Investment in Crimea

Consular postsI15210

1

2

In this paragraph “consular post” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963, and any reference to the functions of a consular post is to be read in accordance with that Convention.

Medical and educational purposesI15311

To enable the carrying out of projects exclusively in support of—

a

hospitals, or other public health institutions providing medical services, or

b

civilian education establishments, located in Crimea.

I15412

To enable anything to be done in relation to the provision or maintenance of appliances or equipment for medical use in Crimea.

Health and the environmentI15513

To enable anything to be done for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health or safety, infrastructure or the environment.

(This note is not part of the Regulations)

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c.13) to establish a sanctions regime under that Act in relation to Russia. These Regulations are made for the purpose of encouraging Russia to cease actions destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine. Following the UK's withdrawal from the European Union, these Regulations will replace the EU sanctions regimes in relation to Russia. The EU sanctions regimes are currently implemented via EU Council Decisions and Regulations.

The Regulations confer a power on the Secretary of State to designate persons who are, or have been, involved in destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine. Designated persons may be excluded from the United Kingdom and may be made subject to financial sanctions, including having their funds or economic resources frozen.

These Regulations also impose restrictions on trade in military goods and technology, on certain dual-use and energy-related items, and impose restrictions on supplying infrastructure-related goods and technology to Crimea and on importing goods from Crimea. These Regulations also restrict the provision of services related to the trade in those items. The Regulations also restrict persons from dealing with certain financial instruments, restrict the provision of finance and funds, and restrict investment in relation to Crimea.

The Regulations provide for certain exceptions to this sanctions regime, including in relation to financial sanctions (for example to allow for frozen accounts to be credited with interest or other earnings), trade sanctions and also acts done for the purpose of national security or the prevention of serious crime. The Regulations also confer powers on the Secretary of State and the Treasury to issue licences in respect of activities that would otherwise be prohibited under the financial and trade sanctions imposed. Schedule 5 of these Regulations sets out the purposes pursuant to which the Treasury will issue such licences.

The Regulations make it a criminal offence to contravene, or circumvent, any of the prohibitions in these Regulations and prescribe the mode of trial and penalties that apply to such offences. The Regulations also confer powers on specified maritime enforcement officers to stop and search ships in international and foreign waters for the purpose of enforcing specified trade sanctions and to seize goods found on board ships which are being, or have been, dealt with in contravention, or deemed contravention, of those prohibitions. The Regulations prescribe powers for the provision and sharing of information to enable the effective implementation and enforcement of the sanctions regime.

The Regulations revoke the relevant EU Regulations relating to the existing EU Russia sanctions regimes, in so far as those Regulations would have had effect in the UK after exit day. The Regulations also revoke existing UK trade and financial sanctions regulations relating to the existing EU Russia sanctions regimes.