The Russia (Sanctions) (EU Exit) Regulations 2019
2019 No. 855
Exiting The European Union
Sanctions
The Russia (Sanctions) (EU Exit) Regulations 2019
Made 10th April 2019
Laid before Parliament 11th April 2019
Coming into force in accordance with regulation 1(2) and (3)
The Secretary of State1, 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 20182, 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:
PART 1
General
Citation and commencement
1.—(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)
(a) this regulation;
(b)
(b) regulation 2 (interpretation);
(c)
(c) regulation 4 (purposes);
(d)
(d) Part 2;
(e)
(e) Schedule 1 (rules for interpretation of regulations 7(2) and 16(7)).
Interpretation
2. 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 19793;
“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—
(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)4,
(b) Council Regulation (EU) No 692/2014 of 23 June 2014 (concerning restrictive measures in response to the illegal annexation of Crimea and Sevastopol)5, and
(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)6;
“trade licence” means a licence under regulation 65;
“Treasury licence” means a licence under regulation 64(1);
the “Ukraine Financial Sanctions Regulations” means—
(a) The Ukraine (European Union Financial Sanctions) (No.2) Regulations 20147, and
(b) The Ukraine (European Union Financial Sanctions) (No.3) Regulations 20148;
“United Kingdom person” has the same meaning as in section 21 of the Act;
“working day” means any day other than—
(a) Saturday or Sunday,
(b) Christmas Day or Good Friday, or
(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 Kingdom
3.—(1) A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom.
(2) Any person may contravene a relevant prohibition by conduct in the territorial sea.
(3) In this regulation a “relevant prohibition” means any prohibition imposed—
(a)
(a) by regulation 9(2) (confidential information),
(b)
(b) by Part 3 (Finance),
(c)
(c) by Part 5 (Trade),
(d)
(d) under Part 6 (Ships), or
(e)
(e) by a condition of a Treasury licence or a trade licence.
(4) A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom.
(5) Any person may comply, or fail to comply, with a relevant requirement by conduct in the territorial sea.
(6) In this regulation a “relevant requirement” means any requirement imposed—
(a)
(a) by or under Part 8 (Information and records), or by reason of a request made under a power conferred by that Part, or
(b)
(b) by a condition of a Treasury licence or a trade licence.
(7) Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom.
Purposes
4. The regulations contained in this instrument that are made under section 1 of the Act are for the purposes of encouraging Russia to cease actions destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine.
PART 2
Designation of persons
Power to designate persons
5.—(1) The Secretary of State may designate persons by name for the purposes of any of the following—
(a)
(a) regulations 11 to 15 (asset-freeze etc.);
(b)
(b) regulation 20 (immigration).
(2) The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1).
Designation criteria
6.—(1) The Secretary of State may not designate a person under regulation 5 unless the Secretary of State—
(a)
(a) has reasonable grounds to suspect that that person is an involved person, and
(b)
(b) considers that the designation of that person is appropriate, having regard to—
(i) the purposes stated in regulation 4, and
(ii) the likely significant effects of the designation on that person (as they appear to the Secretary of State to be on the basis of the information that the Secretary of State has).
(2) In this regulation an “involved person” means a person who—
(a)
(a) is or has been involved in destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine,
(b)
(b) is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved,
(c)
(c) is acting on behalf of or at the direction of a person who is or has been so involved, or
(d)
(d) is a member of, or associated with, a person who is or has been so involved.
(3) For the purposes of this regulation a person is “involved in destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine” if—
(a)
(a) the person is responsible for, engaging in, providing support for, or promoting any policy or action which destabilises Ukraine or undermines or threatens the territorial integrity, sovereignty or independence of Ukraine;
(b)
(b) the person provides financial services, or makes available funds, economic resources, goods or technology that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine;
(c)
(c) the person provides financial services, or makes available funds, economic resources, goods or technology, to—
(i) a person who is responsible for a policy or action which falls within paragraph (a), or
(ii) a person who provides financial services, or makes available funds, economic resources, goods or technology, as mentioned in sub-paragraph (b);
(d)
(d) the person obstructs the work of international organisations in Ukraine;
(e)
(e) the person conducts business with a separatist group in the Donbas region;
(f)
(f) the person is a relevant person trading or operating in Crimea; or
(g)
(g) the person assists with the contravention of a relevant provision.
(4) In paragraph (3)(f), a person (“P”) “is a “relevant person” if—
(a)
(a) P is not an individual;
(b)
(b) the ownership or control of P has been transferred contrary to the law of Ukraine.
(5) In paragraph (2)(d), being “associated with” a person includes obtaining a financial benefit or other material benefit from that person.
(6) In this regulation “relevant provision” means—
(a)
(a) any provision of Part 3 or Part 5;
(b)
(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”
7.—(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)
(a) holds directly or indirectly more than 50% of the shares in C,
(b)
(b) holds directly or indirectly more than 50% of the voting rights in C, or
(c)
(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.
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