The Russia (Sanctions) (EU Exit) Regulations 2019

SCHEDULES

Regulations 7(3) and 16(8)

SCHEDULE 1 Rules for interpretation of regulations 7(2) and 16(7)

Application of Schedule

1.—(1) The rules set out in the following paragraphs of this Schedule apply for the purpose of interpreting regulations 7(2) and 16(7).

(2) They also apply for the purpose of interpreting this Schedule.

Joint interests

2.  If two or more persons each hold a share or right jointly, each of them is treated as holding that share or right.

Joint arrangements

3.—(1) If shares or rights held by a person and shares or rights held by another person are the subject of a joint arrangement between those persons, each of them is treated as holding the combined shares or rights of both of them.

(2) A “joint arrangement” is an arrangement between the holders of shares or rights that they will exercise all or substantially all the rights conferred by their respective shares or rights jointly in a way that is pre-determined by the arrangement.

(3) “Arrangement” has the meaning given by paragraph 12.

Calculating shareholdings

4.—(1) In relation to a person who has a share capital, a reference to holding “more than 50% of the shares” in that person is to holding shares comprised in the issued share capital of that person of a nominal value exceeding (in aggregate) 50% of that share capital.

(2) 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 rights

5.—(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.

6.  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 board

7.  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.

8.  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.

Shares or rights held “indirectly”

9.—(1) A person holds a share “indirectly” if the person has a majority stake in another person and that other person—

(a) holds the share in question, or

(b) is part of a chain of persons—

(i) each of whom (other than the last) has a majority stake in the person immediately below it in the chain, and

(ii) the last of whom holds the share.

(2) A person holds a right “indirectly” if the person has a majority stake in another person and that other person—

(a) holds that right, or

(b) is part of a chain of persons—

(i) each of whom (other than the last) has a majority stake in the person immediately below it in the chain, and

(ii) the last of whom holds that right.

(3) For these purposes, a person (“A”) has a “majority stake” in another person (“B”) if—

(a) A holds a majority of the voting rights in B,

(b) A is a member of B and has the right to appoint or remove a majority of the board of directors of B,

(c) A is a member of B and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in B, or

(d) A has the right to exercise, or actually exercises, dominant influence or control over B.

(4) In the application of this paragraph to the right to appoint or remove a majority of the board of directors, a person (“A”) is to be treated as having the right to appoint a director if—

(a) any person’s appointment as director follows necessarily from that person’s appointment as director of A, or

(b) the directorship is held by A itself.

Shares held by nominees

10.  A share held by a person as nominee for another is to be treated as held by the other (and not by the nominee).

Rights treated as held by person who controls their exercise

11.—(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.

12.  “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.

13.—(1) Rights that are exercisable only in certain circumstances are to be taken into account only—

(a) when the circumstances have arisen, and for so long as they continue to obtain, or

(b) when the circumstances are within the control of the person having the rights.

(2) But rights that are exercisable by an administrator or by creditors while a person is subject to relevant insolvency proceedings are not to be taken into account while the person is subject to those proceedings.

(3) “Relevant insolvency proceedings” means—

(a) administration within the meaning of the Insolvency Act 1986(1)

(b) administration within the meaning of the Insolvency (Northern Ireland) Order 1989(2), or

(c) proceedings under the insolvency law of another country during which a person’s assets and affairs are subject to the control or supervision of a third party or creditor.

(4) Rights that are normally exercisable but are temporarily incapable of exercise are to continue to be taken into account.

Rights attached to shares held by way of security

14.  Rights attached to shares held by way of security provided by a person are to be treated for the purposes of this Schedule as held by that person—

(a) where apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights are exercisable only in accordance with that person’s instructions, and

(b) where the shares are held in connection with the granting of loans as part of normal business activities and apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights are exercisable only in that person’s interests.

Regulations 16, 17 and 59

SCHEDULE 2 Persons named in relation to financial restrictions

1.  Sberbank

2.  VTB bank

3.  Gazprombank

4.  Vnesheconombank (VEB)

5.  Rosselkhozbank

6.  OPK Oboronprom

7.  United Aircraft Corporation

8.  Uralvagonzavod

9.  Rosneft

10.  Transneft

11.  Gazprom Neft

Regulation 21

SCHEDULE 3 Energy-related goods and infrastructure-related goods

PART 1 General

Interpretation

1.—(1) For the purposes of this Schedule—

(a) a thing “falls within” a commodity code if it is, or would be, classified under that commodity code, as set out in the Goods Classification Table;

(b) a thing “falls within” a chapter if it is, or would be, classified under that chapter, as set out in the Goods Classification Table;

(c) where a commodity code or chapter is preceded by “ex”, the goods specified in this Schedule constitute only a part of the scope of the commodity code or chapter and must fall within both the description given to that code or chapter in this Schedule and the scope of the code or chapter in the Goods Classification Table.

(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 time(3).

PART 2 Energy-related goods

2.  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

3.  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 3 Infrastructure-related goods

4.  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.

5.  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

Regulations 32 to 38

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

1.  JSC Sirius

2.  OJSC Stankoinstrument

3.  OAO JSC Chemcomposite

4.  JSC Kalashnikov

5.  JSC Tula Arms Plant

6.  NPK Technologii Maschinostrojenija

7.  OAO Wysokototschnye Kompleksi

8.  OAO Almaz Antey

9.  OAO NPO Bazalt

Regulation 64(2)

SCHEDULE 5 Treasury licences: purposes

PART 1 Asset-freeze etc.

Interpretation

1.  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 needs

2.—(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) payments of insurance premiums;

(iii) payments 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) payment of insurance premiums;

(b) payment of reasonable fees for the provision of property management services;

(c) payment of remuneration, allowances or pensions of employees;

(d) payment of tax;

(e) rent or mortgage payments;

(f) utility payments.

(4) In sub-paragraph (1)—

“dependent” means financially dependent;

“family member” includes—

(a)

the wife or husband of the designated person;

(b)

the civil partner of the designated person;

(c)

any parent or other ascendant of the designated person;

(d)

any child or other descendant of the designated person;

(e)

any person who is a brother or sister of the designated person, or a child or other descendant of such a person.

Legal services

3.  To enable the payment of—

(a) reasonable professional fees for the provision of legal services, or

(b) reasonable expenses associated with the provision of legal services.

Maintenance of frozen funds and economic resources

4.  To enable the payment of—

(a) reasonable fees, or

(b) reasonable service charges,

arising from the routine holding or maintenance of frozen funds or economic resources.

Extraordinary expenses

5.  To enable an extraordinary expense of a designated person to be met.

Pre-existing judicial decisions etc.

6.  To enable, by the use of a designated person’s frozen funds or economic resources, the implementation or satisfaction (in whole or in part) of a judicial, administrative or arbitral decision or lien, provided that—

(a) the funds or economic resources so used are the subject of the decision or lien,

(b) the decision or lien—

(i) was made or established before the date on which the person became a designated person, and

(ii) is enforceable in the United Kingdom, and

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

Extraordinary situation

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

Prior obligations

8.  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 posts

9.—(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(4), and any reference to the functions of a consular post is to be read in accordance with that Convention.

PART 2 Investment in Crimea

Consular posts

10.—(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, and any reference to the functions of a consular post is to be read in accordance with that Convention.

Medical and educational purposes

11.  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.

12.  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 environment

13.  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.

(1)

1986 c.45.

(2)

S.I. 1989/2405 (N.I. 19).

(3)

The Tariff of the United Kingdom, Version 1.0, is available electronically from: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/785939/Tariff_Reference_Document_13_March_2019.pdf. A hard copy is available for inspection free of charge at the offices of HMRC at 100 Parliament Street, London, SW1A 2BQ.

(4)

United Nations Treaty Series, vol. 596, p. 261.