The Russia (Sanctions) (EU Exit) Regulations 2019

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

Interpretation of this Chapter

31.  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 goods

32.—(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 goods

33.—(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 available

34.—(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) 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 military use in Russia;

(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 technology

35.—(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 technology

36.—(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) 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 military use in Russia;

(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.

Financial services and funds relating to dual-use goods and dual-use technology

37.—(1) A person must not directly or indirectly provide, to a person connected with Russia, financial services in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of dual-use goods for military use,

(b) the direct or indirect supply or delivery of dual-use goods for military use,

(c) directly or indirectly making dual-use goods for military use or dual-use technology for military use available to a person,

(d) the transfer of dual-use technology for military use, or

(e) the direct or indirect provision of technical assistance relating to dual-use goods for military use or dual-use technology for military use.

(2) A person must not directly or indirectly make funds available to a person connected with Russia in pursuance of or in connection with an arrangement mentioned in paragraph (1).

(3) A person must not directly or indirectly provide, to a person mentioned in Schedule 4, financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of dual-use goods,

(b) the direct or indirect supply or delivery of dual-use goods,

(c) directly or indirectly making dual-use goods or technology available to a person,

(d) the transfer of dual-use technology, or

(e) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology.

(4) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export to Russia of dual-use goods for military use;

(b) the export of dual-use goods for military use in Russia;

(c) the export of dual-use goods to or for use by a person mentioned in Schedule 4;

(d) the direct or indirect supply or delivery of dual-use goods for military use to a place in Russia;

(e) the direct or indirect supply or delivery of dual-use goods to or for use by a person mentioned in Schedule 4;

(f) directly or indirectly making available, to a person connected with Russia, dual-use goods for military use or dual-use technology for military use;

(g) directly or indirectly making available dual-use goods for military use in Russia or dual-use technology for military use in Russia;

(h) directly or indirectly making dual-use goods or dual-use technology available to or for use by a person mentioned in Schedule 4.

(i) the transfer of dual-use technology for military use—

(i) to a person connected with Russia, or

(ii) to a place in Russia;

(j) the transfer of dual-use technology to a person mentioned in Schedule 4;

(k) the direct or indirect provision of technical assistance relating to dual-use goods for military use or dual-use technology for military use to a person connected with Russia;

(l) the direct or indirect provision of technical assistance relating to dual-use goods for military use in Russia or dual-use technology for military use in Russia;

(m) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology to a person mentioned in Schedule 4;

(n) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology for use by a person mentioned in Schedule 4.

(5) Paragraphs (1) to (4) are subject to Part 7 (Exceptions and licences).

(6) A person who contravenes a prohibition in any of paragraphs (1) to (4) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening a prohibition in paragraph (1) or (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 an offence of contravening a prohibition in paragraph (3) (“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;

(c) 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 technology

38.—(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 dual-use goods for military use from a third country to a place in Russia;

(b) the direct or indirect supply or delivery of dual-use goods to or for use by a person mentioned in Schedule 4;

(c) directly or indirectly making dual-use goods for military use available in a third country for direct or indirect supply or delivery—

(i) to a person connected with Russia, or

(ii) to a place in Russia;

(d) directly or indirectly making dual-use technology for military use available in a third country for transfer—

(i) to a person connected with Russia, or

(ii) to a place in Russia;

(e) directly or indirectly making dual-use goods or dual-use technology available to or for use by a person mentioned in Schedule 4.

(f) the transfer of dual-use technology for military use from a place in a third country—

(i) to a person connected with Russia, or

(ii) to a place in Russia;

(g) the transfer of dual-use technology from a place in a third country to a person mentioned in Schedule 4;

(h) the direct or indirect provision, in a non-UK country, of technical assistance relating to dual-use goods for military use or dual-use technology for military use—

(i) to a person connected with Russia, or

(ii) for use in Russia;

(i) the direct or indirect provision, in a non-UK country, of technical assistance relating to dual-use goods or dual-use technology to a person mentioned in Schedule 4.

(j) 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 37(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 37(3);

(k) directly or indirectly making funds available, in a non-UK country, 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 37(1); or

(l) the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 37(3).

(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 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 brokering services were provided in relation to an arrangement mentioned in that paragraph.

(4) In this regulation—

“non-UK country” means a country that is not the United Kingdom;

“third country” means—

(a)

for the purposes of paragraph (1)(a) and (c), a country that is not the United Kingdom, the Isle of Man or Russia,

(b)

for the purposes of any other provision of paragraph (1), a country that is not the United Kingdom or Russia.