PART 7Exceptions and licences

F2Exceptions relating to investments in relation to Russia60ZZA

1

The prohibitions in regulation 18B (investments in relation to Russia) are not contravened by any act done by a person (“P”) in satisfaction of an obligation of P arising under a F4contract—

a

concluded before 16th December 2022, in the case of a relevant activity, or

b

concluded before 19th July 2022, in any other case,

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 18B are not contravened by a person dealing, directly or indirectly, with—

a

a transferable security where such dealing is prohibited by regulation 16;

b

a relevant security issued by a person connected with Russia; or

c

a relevant security issued by a relevant entity.

3

In this regulation—

  • “dealing with” a relevant security issued by a person connected with Russia or by a relevant entity includes a reference to purchasing or selling the security, providing investment services relating to the security or assisting in the issuance of the security;

  • F1“person connected with Russia” is to be construed in accordance with regulation 19A(2);

  • “relevant activity” means directly or indirectly acquiring any ownership interest in or control over a person, other than an individual, which is not a person connected with Russia, for the purpose of making funds or economic resources available—

    1. a

      directly or indirectly to a person connected with Russia, or

    2. b

      for the benefit of a person connected with Russia;

  • “relevant entity” shall have the same meaning as it has in regulation 18B (investments in relation to Russia);

  • “relevant security issued by a person connected with Russia” means a security issued by—

    1. a

      a person connected with Russia;

    2. b

      a person, other than an individual, which is owned by a person falling 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);

    which—

    1. a

      is negotiable on the capital market;

    2. b

      is of any of the following kinds, but excluding instruments of payment—

      1. i

        shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares;

      2. ii

        bonds or other forms of securitised debt, including depositary receipts in respect of such securities;

      3. iii

        any other securities giving the right to purchase or sell any security of a kind mentioned in paragraph (i) or (ii); and

    3. c

      was admitted to trading on a regulated market or multilateral trading facility prior to F619th July 2022;

  • F3“relevant security issued by a relevant entity” means a security issued by a relevant entity for the purpose of an activity not prohibited by regulation 18B which—

    1. a

      is negotiable on the capital market, and

    2. b

      is of any of the following kinds but excluding instruments of payment—

      1. i

        shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares;

      2. ii

        bonds or other forms of securitised debt, including depositary receipts in respect of such securities;

      3. iii

        any other securities giving the right to purchase or sell any security of a kind mentioned in sub-paragraph (i) or (ii);

  • F5...

  • “transferable security” has the same meaning as it has in regulation 16 (dealing with transferable securities or money-market instruments).