Consolidated version - Frequently asked questions concerning sanctions adopted following Russia’s military aggression against Ukraine and Belarus' involvement in it.

Banking and

Finance

on the implementation of

Council Regulation No 833/2014 and

Council Regulation No 269/2014

COMMISSION

CONSOLIDATED

FAQs

Consolidated FAQs on the implementation of

Council Regulation No 833/2014 and Council Regulation No 269/2014

This document is a working document drafted by the Commission services to give guidance to

national authorities, EU operators and citizens for the implementation and the interpretation of

Council Regulation (EU) No 833/2014, Council Regulation (EU) No 269/2014, Council

Regulation (EU) No 692/2014 and Council Regulation (EU) 2022/263. By analogy, the FAQs

therein also apply to Council Regulation (EC) No 765/2006. Only the Court of Justice of the EU

is competent to interpret EU law. National authorities and economic operators may make use of

this guidance based on the text, context and purpose of the aforementioned regulations, to

achieve the uniform application of sanctions across the EU.

Issued on: 22 June 2022

Last update: 26 July 2024

EUROPEAN COMMISSION

DIRECTORATE-GENERAL FOR FINANCIAL STABILITY, FINANCIAL SERVICES AND

CAPITAL MARKETS UNION

Financial Stability, Sanctions and Enforcement

CONTENTS

A. HORIZONTAL ........................................................................................ 5

1. GENERAL QUESTIONS ............................................................... 6

2. CIRCUMVENTION AND DUE DILIGENCE ............................ 13

3. EXECUTION OF CONTRACTS AND CLAIMS ....................... 17

B. INDIVIDUAL FINANCIAL MEASURES ........................................... 21

1. ASSET FREEZE AND PROHIBITION TO MAKE FUNDS AND

ECONOMIC RESOURCES AVAILABLE .................................. 22

C. FINANCE AND BANKING ................................................................. 40

1. TRADING ..................................................................................... 41

2. FINANCING AND REFINANCING RESTRICTIONS .............. 47

3. INVESTMENT FUNDS ............................................................... 49

4. CENTRAL BANK OF RUSSIA ................................................... 54

5. DEPOSITS ..................................................................................... 58

6. CRYPTO-ASSETS ........................................................................ 74

7. CENTRAL SECURITIES DEPOSITORIES ................................ 75

8. SALE OF SECURITIES ............................................................... 85

9. SPECIALISED FINANCIAL MESSAGING SERVICES ........... 90

10. BANKNOTES ............................................................................... 92

11. CREDIT RATING ......................................................................... 94

12. INSURANCE AND REINSURANCE ......................................... 99

13. REPORTING ON OUTGOING TRANSFERS .......................... 104

D. TRADE AND CUSTOMS ................................................................... 108

1. CUSTOMS-RELATED MATTERS ........................................... 109

2. EXPORT-RELATED RESTRICTIONS FOR DUAL-USE

GOODS AND ADVANCED TECHNOLOGIES ....................... 129

3. MARITIME NAVIGATION OF GOODS AND TECHNOLOGY164

4. LUXURY GOODS ...................................................................... 166

5. IMPORT, PURCHASE AND TRANSFER OF LISTED GOODS171

6. TRANSIT OF LISTED GOODS VIA RUSSIA ......................... 185

7. TECHNICAL ASSISTANCE ..................................................... 188

8. FINANCIAL ASSISTANCE ...................................................... 189

9. OBLASTS ................................................................................... 190

10. TRANSPORT OF GOODS IN TRANSIT THROUGH THE

UNION BETWEEN THE KALININGRAD OBLAST AND

RUSSIA ....................................................................................... 194

11. DIVESTMENT FROM RUSSIA .................................................. 196

12. RESTRICTIONS ON DIAMONDS .............................................. 198

13. "NO RE-EXPORT TO RUSSIA" CLAUSE ............................... 205

E. ENERGY .............................................................................................. 209

1. OIL IMPORTS ............................................................................ 210

2. REPORTING OBLIGATIONS UNDER THE OIL IMPORT

RESTRICTIONS ......................................................................... 217

3. GAS IMPORTS ........................................................................... 221

4. ENERGY FINANCING .............................................................. 223

5. OIL PRICE CAP ......................................................................... 225

F. AGRICULTURAL PRODUCTS ......................................................... 257

1. TRADE IN AGRICULTURAL AND RELATED PRODUCTS

FROM RUSSIA (EN & FR VERSIONS) ................................... 258

2. TRADE IN AGRICULTURAL AND RELATED PRODUCTS

FROM UKRAINE (EN & FR VERSIONS) ............................... 266

G. SECTOR SPECIFIC QUESTIONS ..................................................... 272

1. MEDIA ........................................................................................ 273

2. AVIATION .................................................................................. 277

3. ACCESS TO EU PORTS ............................................................ 286

4. ROAD TRANSPORT ................................................................. 297

5. STATE-OWNED ENTERPRISES ............................................. 302

6. PUBLIC PROCUREMENT ........................................................ 309

7. HUMANITARIAN AID ............................................................. 324

8. PROVISION OF SERVICES ...................................................... 327

9. SOFTWARE ................................................................................ 353

10. TRUST SERVICES ..................................................................... 356

11. CHEMICALS .............................................................................. 361

12. INTELLECTUAL PROPERTY RIGHTS .................................. 377

13. MEDICINES AND MEDICAL DEVICES ................................ 389

14. NOTIFICATION AND AUTHORISATION OF TANKER

SALES ......................................................................................... 397

15. TARGETED VESSELS .............................................................. 402

A. HORIZONTAL

1. GENERAL QUESTIONS

RELATED PROVISION: COUNCIL REGULATION 833/2014; COUNCIL REGULATION

269/2014

1. Will the Commission prepare further guidance?

Last update: 15 June 2022

In reaction to the invasion of Ukraine by Russia, the EU has agreed on a wide range of restrictive

measures against Russian individuals and entities in order to cripple Russia’s ability to finance

the war and to impose painful costs on Russia’s political elite responsible or otherwise

instrumental for the realisation of this unprovoked military attack on its neighbouring nation.

Beyond individual asset freezes, travel bans and visa restrictions, these restrictive measures

comprise far-reaching trade restrictions in a number of economic sectors, as well as restrictions

for activities in the financial sector.

In order to facilitate economic operators’ compliance with the restrictive measures, the

Commission keeps updating its FAQs and other developed tools such as the EU sanctions map.

2. Is the Commission Guidance note on the implementation of certain provisions of

Council Regulation (EU) No 833/2014 still applicable?

Last update: 8 April 2022

Yes it is.

3. Does the European Commission provides for a consolidated text with all sanctioned

individuals and entities, as well as with all the TARIC codes of the targeted goods?

Last update: 15 June 2022

As regards the list of all individuals and legal persons subject to an asset freeze, please note that

the Commission manages a Consolidated List of all designations, which is up to date and

available on the EU Sanctions map.

As regards the TARIC codes, the TARIC database is regularly updated in order to include all

targeted goods.

4. Can EU nationals be sanctioned?

Last update: 8 April 2022

Sanctions adopted pursuant to Article 215 TFEU are to pursue the objectives of the Common

Foreign and Security Policy. In line with these objectives, it is for the Council to decide on the

scope of sanctions, including on which persons - irrespective their nationality – are subject to

these measures.

5. What are the benefits of the sanctions for European citizens?

Last update: 8 April 2022

Since the beginning of Putin’s aggression against Ukraine, many European citizens have shared

their concerns about peace in Europe, shown solidarity with Ukrainian refugees and supported

the need for Ukraine to receive political, financial and humanitarian assistance. By aiming to

undermine the Kremlin’s ability to pursue the invasion, sanctions are contributing to restoring

peace in Ukraine and the region. Together with other EU policies, sanctions are a concrete

means to uphold the EU values of human dignity, freedom, democracy, the rule of law and

human rights.

6. Sanctions are affecting ordinary people in Europe and Russia more than they affect

politicians and decision-makers. What is the rationale behind imposing such

sanctions?

Last update: 8 April 2022

Sanctions are targeted at the Kremlin and its accomplices. They aim at weakening the Russian

government’s ability to finance its war of aggression against Ukraine and are calibrated in order

to minimise the negative consequences on the Russian population. In addition, sanctions are

designed to maximise the negative impact for the Russian economy while limiting as much as

possible the consequences for EU businesses and citizens.

Ensuring an effective and diligent implementation of sanctions is key to preventing

circumvention. This is primarily the responsibility of Member States. In this process, the

European Commission is fully committed to assisting them and ensuring a consistent

implementation across the EU.

7. Are EU citizens holding bank accounts in EU banks still allowed to make payments

towards Russian nationals holding bank accounts in Russian banks? What about

receiving money?

Last update: 8 April 2022

There is no general prohibition for EU citizens to make payments towards Russian nationals

holding a bank account in a Russian bank. It is however important to make sure that a payment

does not breach other prohibitions, for instance that it is not in favour of a natural person or

entity designated under Council Regulation No 269/2014, or does not serve to settle a transaction

prohibited under Council Regulation No 833/2014.

Receiving money for a deposit with an EU credit institution is only prohibited under the specific

case laid down in Article 5(b)(1) of Council Regulation No 833/2014, whereby: “It shall be

prohibited to accept any deposits from Russian nationals or natural persons residing in Russia,

or legal persons, entities or bodies established in Russia, if the total value of deposits of the

natural or legal person, entity or body per credit institution exceeds 100 000 EUR.” This

prohibition to accept deposits does not apply when the person making the deposit is a national of

a Member State, a country member of the European Economic Area or Switzerland, or a person

having a temporary or permanent resident permit in one of these countries (Article 5b(2)).

Deposits with EU credit institutions which are necessary for non-prohibited cross border trade in

goods and services between the Union and Russia are allowed, even if they come from Russian

nationals or natural persons residing in Russia, or legal persons, entities or bodies established in

Russia are also allowed (Article 5b(3)).

8. I am a small entrepreneur based in the EU and I have a contract concluded with a

legal entity registered in Russia. The contract dates from before the entry into force

of the current sanctions. Can I still perform payments to the Russian entity under

the current contract? Can I still receive payments ordered by the Russian legal

entity?

Last update: 8 April 2022

There is no general prohibition for EU entrepreneurs to make payments towards legal entities

registered in Russia. It is however important to make sure that the payment does not breach other

prohibitions, for instance that it is not in favour of a natural person or entity designated under

Council Regulation No 269/2014, or does not serve to settle a transaction prohibited under

Council Regulation No 833/2014. Your national competent authority will assist you in

determining whether any of the above is the case. To help you determine whether the

counterparty to your contract is designated under Council Regulation No 269/2014, you may also

check the EU Sanctions Map and use the “Search” function. Your national competent authority

can further support in determining whether the goods or services that you deliver under the

contract are subject to an export ban under Council Regulation No 833/2014.

There is also no general prohibition on receiving payment made by Russian legal entities.

Deposits on EU credit institutions ordered by a Russian legal entity are only prohibited under the

specific case laid down in Article 5(b)(1) of Council Regulation No 833/2014, whereby: “It shall

be prohibited to accept any deposits from Russian nationals or natural persons residing in

Russia, or legal persons, entities or bodies established in Russia, if the total value of deposits of

the natural or legal person, entity or body per credit institution exceeds 100 000 EUR.”

Importantly, this prohibition does not apply when the deposit is necessary for non-prohibited

cross-border trade between the Union and Russia (Article 5b(3)). In other terms, if the goods or

services that your provide your Russian client(s) with are non-prohibited trade under Council

Regulation No 833/2014, you are not subject to any restriction for receiving payments from your

client(s).

Should the object of your contract be the provision or acquisition of goods or services which are

subject to respectively an export or an import ban under Council Regulation No 833/2014, please

note that, depending on the goods or services in question, you might still be able to perform the

contract and receive or make payments until a certain date, subject to the relevant provision in

Council Regulation No 833/2014. Your national competent authority will then assist you in

determining, if at all, until which date you might be able to perform the contract, based on the

goods or services that you trade.

9. I am a Russian citizen with permanent residence in an EU Member State. I work as

a freelancer. I have recently received a letter from my bank stating that my

accounts were restricted due to my Russian nationality in the context of current

sanctions. Does my bank have the right to restrict my accounts?

Last update: 8 April 2022

If neither you nor your client are a designated person under Council Regulation No 269/2014 and

are not providing services whose trade is prohibited under Council Regulation No 833/2014, we

see no reason why your bank should be restricting your account. The sanctions do not provide a

legal basis to refuse payments to your account based on your Russian nationality. Further, as you

have a permanent residence permit in an EU Member State, you are also exempted from the

prohibition to receive deposits from Russian nationals or natural persons residing in Russia, or

legal persons, entities or bodies established in Russia in case your account balance would exceed

EUR 100 000, pursuant to Article 5 (b) (2) of Council Regulation No 833/2014.

You may want to contact your national competent authority in relation to the situation.

10. I am an EU citizen having money in a euro-denominated bank account in a Russian

bank. I would like to transfer my money out from the Russian bank, but my

transfer order was rejected. Which are my options?

Last update: 8 April 2022

It is the role of your national competent authority to help you assess your options. The details

provided here do not allow for an assessment of whether there might be a legal basis justifying

that your transfer be rejected. With more details, your national competent authority will be able

to assess the existence of such a legal basis, or absence thereof.

11. I am a Russian citizen and I own an apartment in one EU Member State. I have

been using regularly my bank account in an EU-based bank to pay the monthly

utilities for the apartment, including annual taxes towards local authorities. The

bank restricted my account and I am no longer able to receive money or order

payments from this account. Is this a correct application of EU law?

Last update: 8 April 2022

If you not are a designated person under Council Regulation No 269/2014 and the money you

seek to receive or transfer does not serve to settle the provision of goods or services whose trade

is prohibited under Council Regulation No 833/2014, we see no reason why your bank should be

restricting your account. The sanctions do not provide a legal basis to refuse payments to your

account based on your Russian nationality. Further, if you have a permanent or temporary

residence permit in an EU Member State, you are also exempted from the prohibition to receive

deposits from Russian nationals or natural persons residing in Russia, or legal persons, entities or

bodies established in Russia in case your account balance would exceed EUR 100 000, pursuant

to Article 5 (b) (2) of Council Regulation No 833/2014. Should you not have a permanent or

temporary residence permit in an EU Member State, the bank should indeed not allow the credit

of any incoming transfer that you as a Russian citizen would make towards it, if and only if your

account balance would be in excess of EUR 100 000. In any event, the possibility of holding an

account balance of up to EUR 100 000 would still leave you headroom for paying monthly

utilities and taxes for your apartment.

You may want to contact your national competent authority in relation to the situation.

12. Can European companies receive payments for services or products commissioned

before the sanctions were put in place on Russian companies or individuals?

Last update: 8 April 2022

Council Regulation (EU) No 269/2014 of 17 March 2014 prohibits EU operators from making

any funds or economic resources available to persons designated under its Annex I, directly or

indirectly, whether by gift, sale, barter or any other means, including the return of the listed

person’s own resources (Article 2(2)). In principle, and by way of example, an EU business is

not allowed to sell or deliver products or services to those persons, even if in exchange for

adequate payment. There are a number of exceptions (derogations) from this prohibition,

including for prior contracts where a payment by a listed person is due under a contract or

agreement concluded or an obligation that arose before the date on which that person was

included in Annex I, and provided that the funds or economic resources will be used for a

payment by the listed person and that the payment is not made to or for the benefit of a listed

person (Article 6 of the Regulation). However, this is subject to a prior authorisation from the

relevant national competent authority.

13. Does Council Regulation (EU) No 833/2014 apply to contracts signed before 16

March 2022? Does it apply to the delivery of goods that were paid by Russian

entities before 16 March 2022?

Last update: 8 April 2022

It depends on the goods and the export-ban measure they are targeted by. Unless otherwise

specified in the relevant provisions of Council Regulation (EU) No 833/2014, export bans apply

as of the day of entry into force of the amendment. It is the role of your national competent

authority to assist you in determining whether the goods you sell are targeted by an export ban.

14. Does Council Regulation 883/2014 apply to Russian subsidiaries of EU parent

companies?

Last update: 8 April 2022

EU sanctions do not apply extra-territorially. In accordance with Article 13, the Regulation

applies:

i. within the territory of the Union

ii. on board any aircraft or any vessel under the jurisdiction of a Member State

iii. to any person inside or outside the territory of the Union who is a national of a Member

State

iv. to any legal person, entity or body, inside or outside the territory of the Union, which is

incorporated or constituted under the law of a Member State

v. to any legal person, entity or body in respect of any business done in whole or in part

within the Union.

Therefore, EU sanctions must be complied with by all EU persons – both natural and legal – and

therefore by all EU incorporated companies, including subsidiaries of Russian companies in the

EU. Russian branches of EU companies remain EU persons, and thus bound by the Regulation.

By contrast, Russian subsidiaries of EU parent companies are incorporated under Russian law,

not under the law of a Member State, hence they are not bound by the measures. However, it is

prohibited for EU parent companies to use their Russian subsidiaries to circumvent the

obligations that apply to the EU parent, for instance by delegating to them decisions which run

counter the sanctions, or by approving such decisions by the Russian subsidiary.

15. Due to sanctions imposed, Russian companies may not be capable of ordering

payments towards companies in the European Union. How should the EU

companies reflect this in their accounting systems? Are set offs against reciprocal

debts and claims allowed?

Last update: 8 April 2022

It is the responsibility of your national competent authority to provide you with guidance on how

to reflect this in your accounting system.

16. How should the term ‘transfer’ in the context of trade-related prohibitions be

interpreted?

Last update: 17 April 2022

The trade-related prohibitions in Council Regulation 833/2014 concerning restrictive measures in

view of Russia's actions destabilising the situation in Ukraine, are, as in most other sanctions

regulations, drafted in a very broad way in order to ensure that a maximum array of operations

around the actual export or import are prohibited. This means that, in addition to exports, EU

sanctions also prohibit the sale and supply of the relevant products to specific categories of

beneficiaries, or for use in specific territories; in addition to import, EU sanctions also prohibit

the purchase of the relevant products to specific categories of beneficiaries, or for use in specific

territories. In both cases, the transfer of the relevant products, as well as brokering services,

technical and financial assistance in relation to their purchase or sale are also prohibited.

Specifically, transfer is a broad concept covering a wide range of operations: not only the

movement of goods through customs controls, but also the transport of goods, including (but not

exhaustively) their loading and trans-shipment. The transfer prohibition applies not only in

relation to an actual import or export (e.g. with the goods entering or exiting the EU customs

territory), but also when those products do not enter the EU, but are transferred between Russia

and a third country (and vice-versa). In such a case, EU operators are prohibited from providing

transfer services as described above.

17. Does Council Regulation No. 883/2014 apply to EU branches of Russian parent

companies?

Last update: 30 June 2022

A branch of a Russian parent company does not have legal personality on its own and is

considered as an entity established in Russia. Therefore, the restrictive measures for Russian

entities apply equally to a branch in the EU. Moreover, to the extent that the activity of the

branch is carried out in the EU, it will be bound to respect EU sanctions itself.

18. What is the relationship between prohibitions in Council Regulation (EU) 269/2014

and Council Regulation (EU) 833/2014?

Last update: 2 July 2024

The prohibitions in both Regulations apply independently and must be complied with. Their

respective applicability must be checked in parallel.

19. When an entity becomes listed in Council Regulation (EU) 269/2014, and is subject

to a prohibition in Council Regulation (EU) 833/2014, can it still benefit from a

derogation, or an exemption, provided for in Council Regulation (EU) 833/2014?

Last update: 2 July 2024

The prohibitions in both Regulations apply independently and must be complied with. If a

derogation or exemption in Council Regulation (EU) 833/2014 is not mirrored in Council

Regulation (EU) 269/2014, the prohibition in Council Regulation (EU) 269/2014 applies fully

and it is not possible to rely on a derogation or exemption in Council Regulation (EU) 833/2014.

2. CIRCUMVENTION AND DUE DILIGENCE

RELATED ARTICLES: ARTICLE 12 OF COUNCIL REGULATION 833/2014; ARTICLE 9 OF

COUNCIL REGULATION 269/2014; ARTICLES 2c AND 5 OF COUNCIL REGULATION

692/2014; and ARTICLES 5 AND 8 OF COUNCIL REGULATION 2022/263

1. What standard of due diligence do EU operators have to observe to comply with the

obligation to freeze assets and the prohibition to make resources available to listed

persons and entities?

Last update: 5 April 2022

The applicable EU Regulations lay down on EU operators (and operators conducting business in

the EU) an obligation of result regarding the obligation to freeze assets and the prohibition to

make funds and economic resources directly or indirectly available. The underlying means (due

diligence) used by the operators to ensure compliance with the above-mentioned obligations and

prohibitions are not further specified in EU legislation. EU operators have to perform appropriate

due diligence calibrated according to the specificities of their business and the related risk

exposure. It is for each operator to develop, implement, and routinely update an EU sanctions

compliance programme that reflects their individual business models, geographic areas of

operations and specificities and related risk-assessment regarding customers and staff.

2. What do you recommended in terms of due diligence to EU operators?

Last update: 5 April 2022

In our Q&A on due diligence for business with Iran, we have recommended a risk-based

approach that consists of risk assessment, multi-level due diligence and ongoing monitoring.

Due diligence may in particular consist in screening of beneficiaries of funds or economic

resources against sanctions lists & adverse media investigations. Adverse media investigations

refer to searches on the internet and news (media investigations) to find evidence that a

contractual counterpart, even if not designated (so it passes the screening against the sanctions

list), is actually controlled by a designated persons (e.g. news on local press that a company is

controlled by a Syrian businessperson) (adverse).

3. The risk of circumvention of export bans via countries that have not joined the

efforts of the EU and its partners is elevated. What is the European Commission

doing to ensure that Russia does not evade sanctions in this way?

Last update: 5 April 2022

Article 12 of Council Regulation (EU) No 833/2014 provides that it is prohibited to participate,

knowingly and intentionally, in activities the object or effect of which is to circumvent

prohibitions in the Regulation. Enforcing such provisions is first and foremost a matter for the

national enforcement authorities and any tips or information regarding possible circumvention

should be actively reported to them.

In line with this national enforcement competence, the Commission will liaise with the National

Competent Authorities of the Member States if it receives information regarding possible

circumvention. Finally, the Commission has recently launched an EU whistle-blower tool

enabling the anonymous reporting of possible sanctions violations, including circumvention.

4. It can be very tricky for companies/investors to identify owners of companies in

order to check whether any of these are sanctioned. This is especially relevant for

Russian companies or funds as ownership is often hidden in holding companies,

owned by other holding companies etc. Will the Commission provide guidance on

what constitutes reasonable efforts on part of companies to identify sanctioned

parties in a company structure?

Last update: 5 April 2022

Assessing the beneficial ownership of a business counterpart is a due diligence duty. There is no

one-size-fits-all model of due diligence. It may depend – and be calibrated accordingly – on the

business specificities and the related risk exposure. It is for each operator to develop, implement,

and routinely update an EU sanctions compliance programme that reflects their individual

business models, geographic and sectoral areas of operations and related risk assessment. Such

sanctions compliance programmes can assist in detecting red flag transactions that can be

indicative of a circumvention pattern.

5. Is an EU bank required to screen its open account transactions for possible

infringement of EU trade restrictions? If so, how must this screening be organised

operationally?

Last update: 5 April 2022

Compliance with trade-related sanctions (e.g. dual-use exports, oil exploration equipment, high

tech goods and technology) is not limited to banks processing the related payments but is also the

responsibility of operators initiating such trade (e.g. exporters, brokers…). Banks can tailor their

compliance programmes to specific risks identified in relation to certain transactions or parties

involved, such calibration being then more risk-based than systematic.

6. If the assets of a person listed under Council Regulation (EU) No 269/2014 were

transferred to an EU operator before that person’s listing, can the operator be held

accountable for having accepted them?

Last update: 19 May 2022

If a certain structure was created in order to assist a person to evade the effects of its possible

future listing, then current, ongoing participation in that structure can amount to circumvention

of the restrictive measures, if done knowingly and intentionally. Circumvention is prohibited

under Article 9 of Council Regulation (EU) No 269/2014. Article 9 can be breached even if the

freezing of assets is not discontinued and no assets reach or benefit the now-listed person; mere

participation in a structure created for that purpose can be considered as a breach. In what

regards the cumulative requirements of knowledge and intent, see also the jurisprudence in Case

C-72/11, Afrasiabi and Others, in particular that these requirements are met where the operator

“deliberately seeks that object or effect or is at least aware that its participation may have that

object or that effect and accepts that possibility”.

7. Could you clarify how the violations of articles 12 of Council Regulation 833/2014

and 1m of Council Regulation 765/2006, both concerning circumvention, are being

determined in practice and which authority is responsible for undertaking such a

task?

Last update: 31 May 2022

Regarding the topic of circumvention, both Articles 12 of Council Regulation (EU) No.

833/2014 and Art. 1m of Council Regulation (EU) No. 765/2006 prohibit to, knowingly and

intentionally, participate in activities the object or effect of which is to circumvent prohibitions

in the Regulations. Thus, the threshold is acting with knowledge and intent to circumvent a

prohibition included in the Regulations. This provision applies on the territory of the EU and to

all EU persons.

It falls within the competencies of the national competent authority of the EU Member State in

question to decide on possible cases of circumventions within their jurisdiction. In addition,

enforcing sanctions provisions is first and foremost a matter for the national enforcement

authorities and any tips or information regarding possible circumvention should be actively

reported to them.

For specific questions, we advise to contact the relevant national competent authority. You find

a list of national competent authorities for each EU Member State here:

https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/docum

ents/national-competent-authorities-sanctions-implementation_en.pdf.

8. Can a national competent authority reject a request for an authorization envisaged under one of

the derogations in Council Regulations (EU) No 269/2014 or No 833/2014 on the basis of

reasonable grounds to suspect that the authorization will be used to circumvent sanctions?

Last update: 30 June 2023

Yes, national competent authorities must take into account credible indications of circumvention

when assessing and deciding on a request for authorization envisaged under the derogations in

Council Regulations (EU) No 269/2014 or No 833/2014.

Therefore, a national competent authority may decide to reject a request for authorization for a

variety of reasons, including on the basis of reasonable grounds to suspect that the authorization

will be used to circumvent sanctions.

This could be the case, for example, when the national competent authority holds information

(acquired through confidential or public sources) suggesting that a party in a transaction subject

to authorization is engaged in the circumvention of sanctions or that certain elements of the

transactions are suspicious (e.g. the price is abnormally low or one or more of the parties cannot

be identified).

3. EXECUTION OF CONTRACTS AND CLAIMS

RELATED PROVISION: TRADE RELATED ARTICLES; ARTICLE 11 OF COUNCIL

REGULATION 833/2014

1. What is a contract in the context of sanctions regimes against Russia and Belarus?

Last update: 8 April 2022

The term ‘contract’ refers to a binding commitment between parties. Such an agreement should

contain all the necessary elements for its validity and the execution of a transaction (such as

indication of the parties, price, quantities, delivery dates, modalities of execution, etc.) Most

framework contracts which do not specify the quantities or the price would therefore not be

considered as a contract for the purpose of the exceptions foreseen for the execution of prior

contracts.

2. Can framework contracts be considered as contracts which may benefit from the

prior contracts exception?

Last update: 13 June 2022

Where framework contracts do not specify the exact quantities, precise price or delivery date,

they cannot benefit from the exceptions. Usually, framework agreements do not contain all the

necessary elements for the execution of a transaction (such as price, quantities, deliver dates,

modalities of execution etc.). This means that their implementation requires subsequent signature

of new and specific contracts.

3. What is an “ancillary contract“?

Last update: 13 June 2022

An “ancillary contract” is a contract necessary for the execution of another (principal) contract,

that is, a contract without which the main contract cannot be executed, such as insurance,

financing etc.

However, the execution of ancillary contract must not lead to circumvention of the regulation.

For example, a contract on transportation would not be covered by the ancillary contract

exception since it would fall under the prohibition of “transfer” or “transport”.

4. Does a separate annex signed after 2 March 2022, which defines the quantity and

price of goods for a pre-existing framework contract, fall under the “ancillary

contract” definition?

Last update: 13 June 2022

No. The specification of quantity and price of goods is an essential element of a purchase

contract and has to be determined before 2 March 2022. A separate annex is not an ancillary

contract, but part of the main contract. If the separate annex that specifies essential contract

elements was signed on or after 2 March 2022, it is considered a new contract.

5. Is an extension of a contract considered an “ancillary contract”?

Last update: 13 June 2022

No. The prolongation (whether tacit or explicit) of a contract is considered a new contract.

Consequently, for example, an import based on a contract extended on or after 2 March 2022 (or

executed after 4 June 2022) is prohibited.

6. Are automatic renewals of contracts signed before 2 March 2022 permitted?

Last update: 13 June 2022

No. The tacit prolongation of a contract is treated as a new contract and is therefore prohibited.

7. In Article 11 of Regulation (EU) 833/2014, do the “claims” in connection with any

contract or transaction, the performance of which has been affected by the

compliance of this Regulation, include the liquidation of financial instruments, such

as mutual fund shares by any Russian citizen or natural person residing in Russia,

or legal entity/ body established in Russia? If so, under which conditions?

Last update: 24 May 2022

Article 11 relates to claims in connection with any contract or transaction the performance of

which has been affected, directly or indirectly by Regulation (EU) 833/2014, made by a

counterpart referred to in Article 11(1) under (a), (b) or (c), who would have suffered an alleged

damage due to the compliance with the Regulation by an EU operator - for example if a contract

with this counterpart cannot be fulfilled or was terminated due to the restrictive measures. This

Article seeks to protect EU operators from having to satisfy damage claims of any types in

connection with such contract or transaction, including claims for indemnity or any other claim

of this type, such as a claim for compensation or a claim under a guarantee, notably a claim for

extension or payment of a bond, guarantee or indemnity, particularly a financial guarantee or

financial indemnity, of whatever form.

Without prejudice to other restrictive measures that may affect certain financial instruments, the

EU operator would not be required to satisfy a request for liquidation of a financial instrument, if

such liquidation relates to payment of a bond, guarantee or indemnity referred to in Article 11.

Please note also that if the Russian person is targeted by measures freezing that person’s funds

and economic resources (e.g. via Regulation (EU) 269/2014), the applicable Regulation will, in

principle, prevent the liquidation of financial instruments of that Russian person.

8. Are the claims coming from non-Russians residents in Russia also covered by the

protection offered in Article 11(1)b?

Last update: 13 June 2022

Article 11 protects EU operators against claims by “any other Russian person, entity or body”.

Considering the objective of that provision which is to offer protection to those implementing

EU sanctions, its wording and context, “Russian person” must be understood as including

Russian nationals and Russian residents which are nationals of other States.

9. Article 5l of Council Regulation 833/2014 prohibits to keep executing certain

contracts with Russian entities. How does it affect the due payments to these entities

and will I have to pay interests for the damages caused?

Last update: 26 August 2022

According to Article 5l of the Regulation, it is prohibited to provide direct or indirect support,

including financing and financial assistance or any other benefit under a Union, Euratom or

Member State national programme and contracts to any legal person, entity or body established

in Russia with over 50 % public ownership or public control. It must therefore be understood that

payments prohibited by Article 5l must be withheld while the sanctions are in force. Interests

claimed by Russian contractual counterparts for alleged damages originating by this prohibition

qualify as a form of compensation. Hence, they cannot be satisfied if brought forward by the

persons indicated in Article 11(1)(a)-(c). See also Question 6.

10. When an article of Council Regulation 833/2014 provides for an exception allowing

for the execution of a prior contract until a specific date, does it allow for the

payment on the basis of such contract by the EU operation to its Russian

counterpart after this date?

Last update: 26 August 2022

It is the Commission’s view that an exception allowing for the execution of prior contracts until a

specified date would not allow for a payment to be made to the Russian counterpart beyond that

date. Since the payment is part of the execution of the contract, EU operators are prohibited from

making such a payment thereafter, even if the goods originating in Russia have already been

received. Questions on the concrete application of EU sanctions in specific cases should be

addressed to the relevant national competent authority.

B. INDIVIDUAL FINANCIAL MEASURES

1. ASSET FREEZE AND PROHIBITION TO MAKE FUNDS AND

ECONOMIC RESOURCES AVAILABLE

RELATED PROVISION: COUNCIL REGULATION 269/2014

1 Do the sanctions in Article 2 of Council Regulation (EU) No 269/2014 apply to the

companies owned, controlled, managed by or otherwise associated with listed

persons?

Last update: 8 April 2022

Only the persons and entities listed in Annex I to the Regulation are directly targeted by

sanctions.

However, if the listed person is deemed to own or control a non-listed entity, it can be presumed

that the control also extends to the assets of that entity, and that any funds or economic resources

made available to that entity would reach or benefit the listed person.

This presumption can be rebutted on a case-by-case basis by the entity concerned, if it can be

demonstrated that some or all of its assets are outside the control of the listed person, and/or that

funds or economic resources made available to it would in fact not reach or benefit the listed

person.

For further details on ‘control’, please see the Commission opinion of 19 June 2020 and the

Commission opinion of 8 June 2021.

2 Article 2 of Council Regulation (EU) No 269/2014 refers to legal persons, entities or

bodies, or natural or legal persons, entities or bodies associated with them, as listed

in Annex I. Where can I find the ‘natural or legal persons, entities or bodies

associated with them’?

Last update: 8 April 2022

Strictly speaking, only the persons and entities who/which appear under the column ‘Name’ in

Annex I to Council Regulation (EU) 269/2014 are directly subject to an asset freeze and a

prohibition to make funds and economic resources available to them or for their benefit.

However, these restrictions can affect transactions with natural or legal persons, entities or

bodies associated with them, some of which happen to be mentioned in the ‘Identifying

information’ and/or ‘Reasons’ columns of Annex I to Council Regulation (EU) 269/2014.

Operators need to exert the highest caution when dealing with associated persons or entities. If

non listed entities are deemed to be owned or controlled by listed persons or entities, their assets

must be frozen as well, and no funds or economic resources can be made available to them.

This presumption can be rebutted on a case-by-case basis by the entity concerned, if it can be

demonstrated that some or all of its assets are outside the control of the listed person, and/or that

funds or economic resources made available to it would in fact not reach or benefit the listed

person.

3. Is there a list of the ownership percentages of firms owned by people on the

sanctions’ list?

Last update: 8 April 2022

No, this is a task for EU credit institution’s compliance and due diligence departments. Some

guidance on ownership/control can be found in EU Best Practices. On that basis, it is possible to

know which other firms than the banks, state-owned entities or other entities in the Annexes are

affected by the restrictive measures. These should not be financed either directly or indirectly.

4. Can funds or economic resources be considered as being made available to a listed

person via an entity he/she neither owns nor controls?

Last update: 8 April 2022

If the entity is neither owned nor controlled by the listed person, then the presumptions referred

to in Question 1 do not apply to it. In that case, the entity as such is in principle not affected by

the asset freeze or the prohibition to make funds or economic resources available to it.

However, it cannot be ruled out that funds or economic resources might be made indirectly

available to listed persons via an entity which they neither own nor control (e.g. but is acting as

an intermediary). This is to be assessed on a case-by-case basis, if there are indications of a

possible sanctions breach.

5. If, before the listing took effect, the assets of a listed person were transferred to a

non-listed third person (e.g. a family member), do the assets still need to be frozen?

Last update: 8 April 2022

Article 2(1) of Council Regulation (EU) No 269/2014 does not apply retroactively. However, it

does require the freezing of all assets currently belonging to, or held, owned or controlled by

listed persons. If, at the time of the assessment, there are reasonable grounds to believe that

certain assets “belong to” or are “controlled by” the listed person, even if they are nominally

owned by someone else, then these assets must be frozen under Article 2(1). It does not matter

when the assets were transferred.

In what regards the assessment, the criteria exemplified in the past by the Commission in the

context of ‘control’ were non-exhaustive. In situations involving third persons (and possible

family ties), other elements could also be taken into account, such as:

• the closeness of business and family ties between the listed person and the third person;

• the professional independence of the third person now owning the assets;

• previous gifts given to the third person and how they compare to the transaction in

question;

• the frequency/regularity of previous gifts to the third person;

• the content of formal agreements between the listed person and the third person;

• the nature of the assets (e.g. whether these are shares in a company owned or controlled

by the listed person).

6. Does the EU owner of shares or bonds in a company subject to an asset freeze as a

result of its ownership or control by a listed person have a duty to freeze these

shares or bonds?

Last update: 8 April 2022

Since the owner of the shares is the EU operator, not the listed person, no freezing is necessary

as such under Article 2(1) of Council Regulation (EU) No 269/2014.

7. Can the EU owner of the shares or bonds of a listed company sell them?

Last update: 8 April 2022

If the sale does not result in making funds or economic resources available to the listed company

or for its benefit, it is allowed. However, it would be prohibited if the buyer were the company

itself or any other person targeted by EU restrictive measures such as those in Article 2 of

Council Regulation (EU) No 269/2014. Furthermore, the transaction must not breach Article 5 or

Article 5e of Council Regulation (EU) No 833/2014.

8. Aggregate ownership: If two or more listed persons are each minority shareholders

of a non-listed entity, but their aggregate ownership amounts to more than 50% of

that entity, should that entity be considered as owned by listed persons?

Last update: 8 April 2022

One should take into account the aggregated ownership of the entity. For example, if one listed

person owns 30% of the entity and another listed person owns 25% of the entity, the entity

should be considered as owned by listed persons.

9. A listed person is deemed to control a business group that also includes a listed

entity. Should the assets of all the companies belonging to the group be considered

as controlled by the listed person and accordingly be subject to restrictions under

Article 2 of Council Regulation (EU) No 269/2014?

Last update: 8 April 2022

If control of the listed person over the group as a whole is determined, then the conclusion can

extend to all subsidiaries within the group. If control of the listed person was determined over a

single entity in the group (e.g. the listed entity), then this would impact its own subsidiaries, but

not other subsidiaries in the wider group.

10. If an EU citizen provides manual or intellectual labour to an EU entity that is

owned or controlled by a listed person, would that be considered as making

economic resources available indirectly to the listed person?

Last update: 8 April 2022

As indicated in the Commission opinion of 19 June 2020, the Commission is of the view that

working for an owned or controlled entity can be considered as making economic resources

indirectly available to the listed person exerting ownership/control over that entity insofar as this

labour enables the listed person to obtain funds, goods, or services. The latter assessment is for

the national competent authority to make.

11. Does the derogation in Article 6 of Council Regulation (EU) No 269/2014 allow for

the payment of salaries of EU citizens by entities located in Member States

considered to be owned or controlled by a listed person?

Last update: 8 April 2022

Assets of an owned or controlled entity that are frozen because they were deemed to be

controlled by the listed person can be released on the basis of an authorisation granted in line

with Article 6 of Council Regulation (EU) No 269/2014, if the conditions specified therein are

fulfilled, notably that payment is due under a contract or agreement that was concluded or an

obligation that arose before the date on which the person was listed in Annex I to that

Regulation; the frozen funds are used for a payment by a listed person (or in this case the

owned/controlled entity), and the payment is not made towards any listed person.

12. For an existing bond, are non-listed entities entitled to receive payments so the

listed entity can meet its contractual obligations to pay interest and principal?

Last update: 8 April 2022

In such a case, the payment could be made to a non-listed entity if an authorisation is granted by

the national competent authority, pursuant to Article 6 of Council Regulation (EU) No 269/2014,

whereby: “By way of derogation from Article 2 and provided that a payment by a natural or

legal person, entity or body listed in Annex I is due under a contract or agreement that was

concluded by, or under an obligation that arose for the natural or legal person, entity or body

concerned, before the date on which that natural or legal person, entity or body was included

in Annex I, the competent authorities of the Member States may authorise, under such

conditions as they deem appropriate, the release of certain frozen funds or economic resources,

provided that the competent authority concerned has determined that: (a) the funds or economic

resources shall be used for a payment by a natural or legal person, entity or body listed in Annex

I; and (b) the payment is not in breach of Article 2(2).” The Regulation does not prohibit a

general authorisation for payments to all holders of the security/bond, provided that the national

competent authority can ascertain that all the payments comply with the conditions in Article 6

of Council Regulation (EU) No 269/2014.

13. Do public entities responsible for the administration of state registries (ministries

and state-owned companies) have the right to decide themselves on whether some

property is indirectly owned by sanctioned persons and freeze it immediately,

without referring the case to the authority responsible for the implementation of

financial sanctions under national law?

Last update: 8 April 2022

The obligation to freeze the assets is activated as soon as the public entity holding the assets has

reasonable grounds to believe that these are owned or controlled by a listed person. Prompt

application of the sanctions is key to preventing asset flight. It is however recommended to

ensure coordination with the authority responsible for the implementation of financial sanctions,

which may have further information and investigative tools enabling a definitive assessment of

ultimate beneficial ownership.

14. If a national competent authority freezes the funds of a company owned by a listed

person and the company has no possibility to buy resources necessary for its

operation, is there a possibility for temporary administration of the company by the

state or involvement of state representatives in its management, without the

objective of making profit, but to avoid worsening its business condition during the

asset freeze?

Last update: 8 April 2022

Sanctions in general and asset freezes in particular do not entail expropriation and are of a

temporary nature. Furthermore, EU operators and institutions holding frozen assets should avoid

outcomes causing a disproportionate prejudice to the listed person, which would go beyond the

objectives of restrictive measures. It is for the national competent authority to determine how to

fulfil and monitor this objective, on a case-case by basis.

15. What measure (if any) should competent authorities adopt in respect of listed

shareholders with qualifying holdings in an EU bank? Is the freezing of voting

rights appropriate/required? In that case, should a proportionality approach be

applied, e.g. by starting with increased monitoring of governance?

Last update: 9 November 2022

Shares qualify as ‘funds’ and therefore must be frozen if belonging to, owned, held or controlled

by a listed person. Accordingly, this means that it is prohibited for the listed person to exercise

any voting rights which could lead to any change in relation to these shares (e.g. in their volume,

amount, location, ownership, possession, character, destination etc.). Either way, since they can

be used to obtain funds, goods or services, voting rights as such can be considered an intangible

economic resource. This means they should be frozen, i.e. prevented from being used to obtain

funds, goods or services in any way. Therefore under no circumstance nor for any purpose may

listed shareholders exercise directly or indirectly their voting rights in a company or fund. Voting

rights must be fully frozen

16. In the application of Article 2, should EU operators assess whether the specific

funds or economic resources in question might be used to support the Russian

military aggression against Ukraine?

Last update: 10 November 2022

No. The link between each listed person and the Russian military aggression was already

determined by the Council at the time of the listing, as indicated in the respective statement of

reasons in Annex I. The measures in Article 2 concern the entirety of the person’s assets within

EU jurisdiction, and all funds or economic resources to be made available to that person.

Therefore, when conducting due diligence, what EU operators must assess is whether the assets

in question belong to, or are owned, held or controlled by the listed person, and whether any

funds or economic resources would be made available, directly or indirectly, to that person.

17. If an EU citizen is a board member in a listed Russian/Belarusian company and at

the same time a board member in an EU company, should that person resign from

one such post? Can a person be considered of good repute/integrity if he/she is a

board member in a listed company?

Last update: 29 April 2022

EU sanctions are targeted, meaning that they apply only to those persons and entities that are

subject to a specific restriction (e.g. asset freeze, financing ban etc.). Therefore, sanctions on

listed entities do not automatically extend to their board members. However, board members

may be themselves listed.

The notions of good repute/integrity are indeterminate legal concepts which are not defined in

EU sanctions law.

Elsewhere in EU law, the notion of good repute has been interpreted by the Court of Justice of

the EU (case T-27/19, Pilatus v European Central Bank, point 73), in the context of Article

23(1) of Directive 2013/36 on access to the activity of credit institutions and the prudential

supervision of credit institutions and investment firms. According to the Court, in the absence of

an exhaustive definition of that concept or a list of conduct which may fall within the scope of

that concept, the competent authorities are required to examine on a case-by-case basis whether

the criterion of good repute is met by a shareholder seeking to acquire a qualifying holding in a

credit institution. This requires taking into account the relevant facts (among which the fact that

the person in question sits on the board of a sanctioned entity is relevant), the reasons underlying

the criterion and the objectives which that criterion is intended to secure. The principle of legal

certainty does not, therefore, preclude those authorities from enjoying discretion in the

application of the criteria in question.

18. Should the employment contract of listed persons employed in whatever function

by an EU financial firm be terminated?

Last update: 26 August 2022

Article 2(2) of Council Regulation (EU) No 269/2014 prohibits EU operators from making funds

or economic resources available, directly or indirectly, to persons listed in Annex I to said

Regulation. In principle, a salary payment would fall in the category of ‘making funds or

economic resources available’. Nonetheless, Article 7(2)(b) of Council Regulation (EU) No

269/2014 sets out an exception from Article 2(2) and allows payments to frozen accounts of a

listed person if they are necessary for fulfilling obligations stemming from a prior contract. The

listed person may therefore remain in his/her employment. However, his/her salary would need

to be paid on a frozen account.

19. Should an EU bank freeze funds that are transferred via a listed bank, when both

the sender of the funds and the receiver of the funds are non-listed persons?

Last update: 29 April 2022

In principle, all assets of a listed entity must be frozen. That includes funds coming from it and

funds going to it. See in this regard the Commission opinion of 4 July 2019 which states, in a

similar scenario, that funds of a non-listed person that are deposited in or even just transferred to

a listed bank can be considered to be “held”, in the meaning of Article 2 of Council Regulation

(EU) No 269/2014, albeit temporarily, by the listed bank in question. Article 2 on the asset

freeze does not require a minimum duration for the possession of the funds by the listed entity.

This means transfers from a listed bank should not be rejected nor should the funds be returned

to the sender; instead, the funds should remain blocked in the EU bank. It will be possible to

request to the relevant national competent authority the release of those funds, for instance under

the derogation envisaged in Article 6 of Council Regulation (EU) No 269/2014 concerning a

payment by a listed person under a contract concluded before the date on which that person was

listed.

20. Is it allowed to pay dividends to persons listed in Council Regulation (EU) No

269/2014 or to persons targeted by the financing restrictions in Council Regulation

(EU) No 833/2014?

Last update: 29 April 2022

Dividends may be paid to the frozen accounts of persons listed in Annex I to Council Regulation

(EU) No 269/2014, as per the derogation laid down in Article 7(2)(b). In that case, the dividends

must also be immediately frozen.

Separately, note that dividends may still be paid to legal persons and entities subject to a

financing ban pursuant to Article 5 of Council Regulation (EU) No 833/2014 (e.g. credit

institutions, Russian state-owned enterprises).

21. For an existing derivative contract (e.g. an interest rate swap) subject to daily

margining requirements, is one party allowed to receive collateral that is

contractually due even if the counterparty is a designated entity under Council

Regulation (EU) No 269/2014?

Last update: 29 April 2022

In the situation where a designated entity is fulfilling a non-listed entity's margin call by making

payments to that entity linked to an already concluded derivative contract, forbidding such

payments would result in the absence of transfer of funds owed by the designated entity to the

non-designated entity. This would amount to a transfer of economic resources to the designated

entity. Considering the wide interpretation of the notion of ‘making economic resources

available’ to listed entities by the Court of Justice, this situation is not compatible with the

restrictive measures taken vis-à-vis those designated entities. Non-designated entities can

therefore receive collateral.

22. In case of a trigger event, e.g. as a consequence of either party not meeting a

margining requirement, many derivative contracts give the other party to the

contract the right to foreclose the contract at replacement value. Is such foreclosure

permitted?

Last update: 29 April 2022

Council Regulation (EU) No 269/2014 foresees the possibility to derogate from Article 2. The

foreclosure can be carried out if the conditions specified in Articles 6, 6b or 7 are fulfilled. If that

is not the case, no foreclosure should be carried out.

23. Do ships (vessels) fall under the asset freeze?

Last update: 29 April 2022

Ships fall under the asset freeze, which encompasses all assets owned or controlled by a listed

person. This also means that no services, including maritime services, can be provided to ships

owned by listed persons.

24. Do the restrictive measures in Council Regulation (EU) No 269/2014 apply to

intellectual property rights (patent applications, patents and related procedures) in

the European Union?

Last update: 29 April 2022

EU sanctions can indeed apply to intellectual property rights (IPRs). The EU has designated

(listed) a number of individuals and legal persons as subject to sanctions. All funds and

economic resources, directly or indirectly belonging to, held or controlled by the listed persons

must be frozen.

In practice, any EU person, public institution and person doing business in the EU must prevent

any transfer of, alteration of, access to, use of or other dealings with those frozen funds or

resources. In particular, the freezing of a listed person’s economic resources means that any asset

of the listed person, whether tangible or intangible, cannot be used by anyone to obtain other

funds or assets. Since IPRs can qualify as ‘economic resources’, they are also subject to this

restriction. This means that public institutions (e.g. a trademark register) must not enable the use

of IPRs of a listed person, or of a person owned or controlled by a listed person (e.g. no property

transfer should be registered).

EU sanctions also prohibit making further funds or economic resources available to listed

persons or to entities owned/controlled by them. This means that no further transactions with

those persons are possible (e.g. license fees for an IPR paid by an EU person to a person under

sanctions).

For more information on the treatment of intellectual property rights, please consult the

dedicated Q&As.

25. Does Council Regulation (EU) No 269/2014 allow secondary trading of securities

issued by an entity listed in Annex I?

Last update: 29 April 2022

Supposing the entity is not subject to securities transactions restrictions under Article 5 of

Council Regulation (EU) No 833/2014, secondary market trading of its securities would not be

forbidden. Securities traded on a secondary market cannot be considered as “belonging to,

owned, held or controlled by” the entity, nor can their purchase be considered as making funds or

economic resources available to that entity. It should nonetheless be reminded that pursuant to

Article 9 of Council Regulation (EU) No 269/2014, it is prohibited to participate, knowingly and

intentionally, in activities the object or effect of which is to circumvent the measures referred to

in Article 2 of said Regulation. If you believe you are witnessing sanctions violations or

circumvention, these can be reported to your national competent authority or anonymously via

the EU whistle-blower tool.

26. If the assets of a person listed under Council Regulation (EU) No 269/2014 were