# Council Decision 2014/512/CFSPShow full title

Council Decision 2014/512/CFSP of 31 July 2014 concerning restrictive measures in view of Russia's actions destabilising the            situation in Ukraine         

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# Council Decision 2014/512/CFSP                     

# of 31 July 2014

# concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on European Union, and in particular Article 29 thereof,

Whereas:

(1)On 6 March 2014, the Heads of State or Government of the European Union strongly condemned the unprovoked violation of Ukrainian                              sovereignty and territorial integrity by the Russian Federation and called on the Russian Federation to immediately withdraw                              its armed forces to the areas of their permanent stationing, in accordance with the relevant agreements. They stated that                              any further steps by the Russian Federation to destabilise the situation in Ukraine would lead to additional and far reaching                              consequences for relations in a broad range of economic areas between the European Union and its Member States, on the one                              hand, and the Russian Federation, on the other hand.

(2)On 17 March 2014, the Council adopted Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining                              or threatening the territorial integrity, sovereignty and independence of Ukraine(1), whereby the Council imposed travel restrictions and asset freeze measures.

(3)On 21 March 2014, the European Council recalled the statement of the Heads of State or Government of 6 March 2014 and asked                              the Commission and the Member States to prepare possible targeted measures.

(4)On 27 May, 27 June and 16 July 2014 the Heads of State or Government of the European Union noted that preparatory work by                              the Commission, the EEAS and the Member States on possible targeted measures was underway so that further steps could be taken                              without delay.

(5)On 22 July, the Council urged the Russian Federation to actively use its influence over the illegally armed groups in order                              to achieve full, immediate, safe and secure access to the site of the downing of Malaysian Airlines Flight MH17 in Donetsk,                              full cooperation with the work on recovering remains and possessions and full cooperation with the independent investigation,                              including unhindered access to the site for as long as needed for the investigation and possible follow up investigations.

(6)The Council also urged Russia to stop the increasing flow of weapons, equipment and militants across the border in order to                              achieve rapid and tangible results in de-escalation. The Council further urged Russia to withdraw its additional troops from                              the border area.

(7)In addition, the Council recalled the previous commitments by the European Council and expressed readiness to introduce without                              delay a package of further significant restrictive measures if full and immediate cooperation from Russia on the abovementioned                              demands failed to materialise. The Council requested the Commission and the EEAS to finalise their preparatory work on possible                              targeted measures and to present by 24 July proposals for taking action, including on access to capital markets, defence,                              dual-use goods, and sensitive technologies, including in the energy sector.

(8)In view of the gravity of the situation, the Council considers it appropriate to take restrictive measures in response to                              Russia's actions destabilising the situation in Ukraine.

(9)In this context, it is appropriate to prohibit transactions in or the provision of financing or investment services or dealing                              in new bonds or equity or similar financial instruments with a maturity exceeding 90 days issued by state-owned Russian financial                              institutions, excluding Russia-based institutions with international status established by intergovernmental agreements with                              Russia as one of the shareholders. These prohibitions do not affect the granting of loans to or by those state-owned Russian                              financial institutions independently of their maturity.

(10)In addition, Member States should prohibit the sale, supply, transfer or export to Russia of arms and related materiel of                              all types. The procurement from Russia of arms and related materiel of all types should also be prohibited.

(11)Furthermore, the sale, supply, transfer or export of dual-use items for military use or to military end-users in Russia should                              be prohibited. This prohibition should not affect the exports of dual-use goods and technology, including for aeronautics                              and for the space industry, for non-military use and/or for non-military end-users.

(12)The sale, supply, transfer or export of certain sensitive goods and technologies should be prohibited when they are destined                              for deep water oil exploration and production, arctic oil exploration and production or shale oil projects.

(13)Further action by the Union is needed in order to implement certain measures.

HAS ADOPTED THIS DECISION:

# [F1Article 1U.K.

1.The direct or indirect purchase or sale of, the direct or indirect provision of investment services for or assistance in the                           issuance of, or any other dealing with bonds, equity, or similar financial instruments with a maturity exceeding 90 days,                           issued after 1 August 2014 to 12 September 2014, or with a maturity exceeding 30 days, issued after 12 September 2014 by:                  

(a)major credit institutions or finance development institutions established in Russia with over 50 % public ownership or control                           as of 1 August 2014, as listed in Annex I;                  

(b)any legal person, entity or body established outside the Union owned for more than 50 % by an entity listed in Annex I; or                  

(c)any legal person, entity or body acting on behalf, or at the direction, of an entity within the category referred to in point                           (b) of this paragraph or listed in Annex I,                  

shall be prohibited.                   

2.The direct or indirect purchase or sale of, the direct or indirect provision of investment services for, or assistance in                           the issuance of, or any other dealing with bonds, equity, or similar financial instruments with a maturity exceeding 30 days,                           issued after 12 September 2014 by:                  

(a)entities established in Russia predominantly engaged and with major activities in the conception, production, sales or export                           of military equipment or services, as listed in Annex II, except entities active in the space and nuclear energy sectors;                  

(b)entities established in Russia which are publicly controlled or with over 50 % public ownership which have estimated total                           assets of over 1 trillion Russian Roubles and whose estimated revenues originate for at least 50 % from the sale or transportation                           of crude oil or petroleum products as of 12 September 2014, as listed in Annex III;                  

(c)any legal person, entity or body established outside the Union owned for more than 50 % by an entity referred to in points                           (a) and (b); or                  

(d)any legal person, entity or body acting on behalf, or at the direction, of an entity within the category referred to in point                           (c) or listed in Annex II or III,                  

shall be prohibited.                   

[F23.It shall be prohibited to directly or indirectly make or be part of any arrangement to make new loans or credit with a maturity                              exceeding 30 days to any legal person, entity or body referred to in paragraph 1 or 2, after 12 September 2014 except for loans or credit that have a specific and documented objective to provide financing for non-prohibited direct or                              indirect imports or exports of goods and non-financial services between the Union and Russia or any other third State, or                              for loans that have a specific and documented objective to provide emergency funding to meet the solvency and liquidity criteria                              for legal persons established in the Union, whose proprietary rights are owned for more than 50 % by an entity referred to                              in Annex I.]                  

[F34.The prohibition in paragraph 3 shall not apply to drawdown or disbursements made under a contract concluded before 12 September 2014 if:                  

(a)all the terms and conditions of such drawdown or disbursements:                  

were agreed before 12 September 2014; and                            

have not been modified on or after that date; and                            

(b)before 12 September 2014, a contractual maturity date had been fixed for the repayment in full of all funds made available and for the cancellation                              of all the commitments, rights and obligations under the contract.                  

The terms and conditions of drawdowns and disbursements referred to in this paragraph include provisions concerning the length                           of the repayment period for each drawdown or disbursement, the interest rate applied or the interest rate calculation method,                           and the maximum amount.]]                   

Textual Amendments

F1Substituted by Council Decision 2014/659/CFSP of 8 September 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine.

F2Substituted by Council Decision 2014/872/CFSP of 4 December 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine, and Decision 2014/659/CFSP amending Decision 2014/512/CFSP.

F3Inserted by Council Decision 2014/872/CFSP of 4 December 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine, and Decision 2014/659/CFSP amending Decision 2014/512/CFSP.

# Article 2U.K.

1.The direct or indirect sale, supply, transfer or export of arms and related materiel of all types, including weapons and ammunition,                        military vehicles and equipment, paramilitary equipment, and spare parts therefor, to Russia by nationals of Member States                        or from the territories of Member States or using their flag vessels or aircraft, shall be prohibited whether originating                        or not in their territories.                  

2.It shall be prohibited:                  

(a)to provide technical assistance, brokering services or other services related to military activities and to the provision,                        manufacture, maintenance and use of arms and related materiel of all types, including weapons and ammunition, military vehicles                        and equipment, paramilitary equipment, and spare parts therefor, directly or indirectly to any natural or legal person, entity                        or body in, or for use in Russia;                  

(b)to provide financing or financial assistance related to military activities, including in particular grants, loans and export                        credit insurance or guarantee, as well as insurance and reinsurance for any sale, supply, transfer or export of arms and related                        materiel, or for the provision of related technical assistance, brokering services or other services directly or indirectly                        to any person, entity or body in, or for use in Russia.                  

3.The import, purchase or transport of arms and related materiel of all types, including weapons and ammunition, military vehicles                        and equipment, paramilitary equipment, and spare parts therefor, from Russia by nationals of Member States or using their                        flag vessels or aircraft, shall be prohibited.                  

[F24.The prohibition in paragraphs 1, 2 and 3 shall be without prejudice to the execution of contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such contracts, and to the provision of spare parts and services necessary                           for the maintenance and safety of existing capabilities within the Union.]                  

[F45.The prohibitions in paragraphs 1 and 3 shall not apply to:                  

(a)the sale, supply, transfer or export and to the import, purchase or transport of hydrazine (CAS 302-01-2) in concentrations                           of 70 per cent or more;                  

(b)the import, purchase or transport of unsymmetrical dimethyl hydrazine (CAS 57-14-7);                  

(c)the sale, supply, transfer or export and to the import, purchase or transport of monomethyl hydrazine (CAS 60-34-4);                  

for use of launchers operated by European launch service providers, or for the use of launches of European space programmes,                        or for the fuelling of satellites by European satellites manufacturers.                   

The amount of any export of hydrazine shall be calculated in accordance with the launch or launches or the satellites for                        which it is made and shall not exceed a total quantity of 800 kg for each individual launch or satellite. The amount of any                        export of monomethyl hydrazine shall be calculated in accordance with the launch or launches or the satellites for which it                        is made.                   

6.The prohibitions in paragraph 2 shall not apply to the provision of technical assistance, brokering services or other services,                           and to the provision of financing or financial assistance, related to the operations referred to in points (a), (b) and (c)                           of paragraph 5.                  

7.The operations referred to in points (a), (b) and (c) of paragraph 5 and in paragraph 6 shall be subject to prior authorisation                           by the competent authorities of the Member States. Member States shall duly inform the Council in all cases where they grant                           an authorisation. The information shall include the details of the amounts transferred and of the end-use.]                  

Textual Amendments

F2Substituted by Council Decision 2014/872/CFSP of 4 December 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine, and Decision 2014/659/CFSP amending Decision 2014/512/CFSP.

F4Inserted by Council Decision (CFSP) 2015/1764 of 1 October 2015 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine.

# Article 3U.K.

1.The direct or indirect sale, supply, transfer or export of all dual-use goods and technology listed in Annex I to Council                        Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and                        transit of dual-use items(2) for military use in Russia or for any military end-user in Russia by nationals of Member States or from the territories of                        Member States or using their flag vessels or aircraft, shall be prohibited whether originating or not in their territories.                  

2.It shall be prohibited:                  

(a)to provide technical assistance, brokering services or other services related to goods and technology set out in paragraph                        1 and to the provision, manufacture, maintenance and use of these goods and technology, directly or indirectly to any person,                        entity or body in, or for use in Russia;                  

(b)to provide financing or financial assistance related to goods and technology referred to in paragraph 1, including in particular                        grants, loans and export credit insurance, for any sale, supply, transfer or export of these goods and technology, or for                        the provision of related technical assistance, brokering services or other services, directly or indirectly to any person,                        entity or body in, or for use in Russia.                  

[F23.The prohibitions in paragraphs 1 and 2 shall be without prejudice to the execution of contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such contracts.]                  

Textual Amendments

F2Substituted by Council Decision 2014/872/CFSP of 4 December 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine, and Decision 2014/659/CFSP amending Decision 2014/512/CFSP.

# [F5Article 3aU.K.

1.The direct or indirect sale, supply, transfer or export of dual use goods and technology as included in Annex I to Regulation                           (EC) No 428/2009 to any person, entity or body in Russia as listed in Annex IV to this Decision by nationals of Member States                           or from the territories of Member States or using their flag vessels or aircraft, shall be prohibited whether originating                           or not in their territories.                  

2.It shall be prohibited:                  

(a)to provide technical assistance, brokering services or other services related to goods and technology set out in paragraph                           1 and to the provision, manufacture, maintenance and use of these goods and technology, directly or indirectly to any person,                           entity or body in Russia, as listed in Annex IV;                  

(b)to provide financing or financial assistance related to goods and technology referred to in paragraph 1, including in particular                           grants, loans and export credit insurance, for any sale, supply, transfer or export of these goods and technology, or for                           the provision of related technical assistance, brokering services or other services, directly or indirectly to any person, entity                           or body in Russia, as listed in Annex IV.                  

[F23.The prohibitions in paragraph 1 and 2 shall be without prejudice to the execution of contracts concluded before 12 September 2014 or ancillary contracts necessary for the execution of such contracts, and to the provision of assistance necessary for the                              maintenance and safety of existing capabilities within the EU.]                  

4.The prohibitions in paragraphs 1 and 2 shall not apply to exports, sale, supplies or transfers of dual-use goods and technology                           for the aeronautics and for the space industry, or the related provision of technical or financial assistance, for non-military                           use and for a non-military end user, as well as for maintenance and safety of existing civil nuclear capabilities within the                           EU, for non-military use and for a non-military end user.]                  

Textual Amendments

F2Substituted by Council Decision 2014/872/CFSP of 4 December 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine, and Decision 2014/659/CFSP amending Decision 2014/512/CFSP.

F5Inserted by Council Decision 2014/659/CFSP of 8 September 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine.

# [F2Article 4U.K.

1.The direct or indirect sale, supply, transfer or export of certain equipment suited to the following categories of exploration                           and production projects in Russia, including its Exclusive Economic Zone and Continental Shelf, by nationals of Member States,                           or from the territories of Member States, or using vessels or aircraft under the jurisdiction of Member States, shall be subject                           to prior authorisation by the competent authority of the exporting Member State:                  

(a)oil exploration and production in waters deeper than 150 metres;                  

(b)oil exploration and production in the offshore area north of the Arctic Circle;                  

(c)projects that have the potential to produce oil from resources located in shale formations by way of hydraulic fracturing;                           it does not apply to exploration and production through shale formations to locate or extract oil from non-shale reservoirs.                  

The Union shall take the necessary measures in order to determine the relevant items to be covered by this paragraph.                   

2.The provision of:                  

(a)technical assistance or other services related to the equipment referred to in paragraph 1;                  

(b)financing or financial assistance for any sale, supply, transfer or export of the equipment referred to in paragraph 1 or                           for the provision of related technical assistance or training;                  

shall also be subject to prior authorisation by the competent authority of the exporting Member State.                   

3.The competent authorities of the Member States shall not grant any authorisation for any sale, supply, transfer or export                           of the equipment or the provision of the services, as referred to in paragraphs 1 and 2, if they determine that the sale,                           supply, transfer or export concerned or the provision of the service concerned is destined for one of the categories of exploration                           and production referred to in paragraph 1.                  

4.Paragraph 3 shall be without prejudice to the execution of contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such contracts.                  

5.An authorisation may be granted where the sale, supply, transfer or export of the items or the provision of the services,                           as referred to in paragraphs 1 and 2, is necessary for the urgent prevention or mitigation of an event likely to have a serious                           and significant impact on human health and safety or the environment. In duly justified cases of emergency, the sale, supply,                           transfer or export or the provision of services, as referred to in paragraphs 1 and 2, may proceed without prior authorisation,                           provided that the exporter notifies the competent authority within five working days after the sale, supply, transfer or export                           or the provision of services has taken place, providing detail about the relevant justification for the sale, supply, transfer                           or export or the provision of services without prior authorisation.]                  

Textual Amendments

F2Substituted by Council Decision 2014/872/CFSP of 4 December 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine, and Decision 2014/659/CFSP amending Decision 2014/512/CFSP.

# [F5Article 4aU.K.

[F21.The direct or indirect provision of associated services necessary for the following categories of exploration and production                              projects in Russia, including its Exclusive Economic Zone and Continental Shelf, by nationals of Member States, or from the                              territories of Member States, or using vessels or aircraft under the jurisdiction of Member States shall be prohibited:                  

(a)oil exploration and production in waters deeper than 150 metres;                  

(b)oil exploration and production in the offshore area north of the Arctic Circle;                  

(c)projects that have the potential to produce oil from resources located in shale formations by way of hydraulic fracturing;                              it does not apply to exploration and production through shale formations to locate or extract oil from non-shale reservoirs.]                  

2.The prohibition set out in paragraph 1 shall be without prejudice to the execution of contracts or framework agreements concluded                           before 12 September 2014 or ancillary contracts necessary for the execution of such contracts.                  

3.The prohibition set out in paragraph 1 shall not apply where the services in question are necessary for the urgent prevention                           or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment.]                  

Textual Amendments

F2Substituted by Council Decision 2014/872/CFSP of 4 December 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine, and Decision 2014/659/CFSP amending Decision 2014/512/CFSP.

F5Inserted by Council Decision 2014/659/CFSP of 8 September 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine.

# Article 5U.K.

In order to maximise the impact of the measures referred to in this Decision, the Union shall encourage third States to adopt                     restrictive measures similar to those provided for herein.                  

# Article 6U.K.

Actions by natural or legal persons, entities or bodies shall not give rise to liability of any kind on their part, if they                     did not know, and had no reasonable cause to suspect, that their actions would infringe the measures set out in this Decision.                  

# Article 7U.K.

1.No claims in connection with any contract or transaction the performance of which has been affected, directly or indirectly,                        in whole or in part, by the measures imposed under this Decision, 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, shall be satisfied, if they are                        made by:                  

[F1(a)entities referred to in point (b) or (c) of Article 1(1) and in point (c) or (d) of Article 1(2), or listed in Annex I, II,                           III or IV;]                  

(b)any other Russian person, entity or body; or                  

(c)any person, entity or body acting through or on behalf of one of the persons, entities or bodies referred to in points (a)                        or (b) of this paragraph.                  

2.In any proceedings for the enforcement of a claim, the onus of proving that satisfying the claim is not prohibited by paragraph                        1 shall be on the person seeking the enforcement of that claim.                  

3.This Article is without prejudice to the right of the persons, entities and bodies referred to in paragraph 1 to judicial                        review of the legality of the non-performance of contractual obligations in accordance with this Decision.                  

Textual Amendments

F1Substituted by Council Decision 2014/659/CFSP of 8 September 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine.

# [F1Article 8U.K.

It shall be prohibited to participate, knowingly or intentionally, in activities the object or effect of which is to circumvent                        the prohibitions set out in Articles 1 to 4a, including by acting as a substitute for the entities referred to in Article                        1.]                   

Textual Amendments

F1Substituted by Council Decision 2014/659/CFSP of 8 September 2014 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine.

# Article 9U.K.

[F61.[F7This Decision shall apply until 31 July 2016.]                  

[F4Article 2(6) shall apply from 9 October 2015.]]                   

2.This Decision shall be kept under constant review. It shall be renewed, or amended as appropriate, if the Council deems that                        its objectives have not been met.                  

3.The restrictive measures laid down in this Decision shall be reviewed no later than 31 October 2014, in particular taking                        into account their effect and the measures adopted by third States.                  

Textual Amendments

F4Inserted by Council Decision (CFSP) 2015/1764 of 1 October 2015 amending Decision 2014/512/CFSP concerning restrictive measures in view                                 of Russia's actions destabilising the situation in Ukraine.

F6Substituted by Council Decision (CFSP) 2015/971 of 22 June 2015 amending Decision 2014/512/CFSP concerning restrictive measures in view of                                 Russia's actions destabilising the situation in Ukraine.

F7Substituted by Council Decision (CFSP) 2015/2431 of 21 December 2015 amending Council Decision 2014/512/CFSP concerning restrictive measures                                 in view of Russia's actions destabilising the situation in Ukraine.

# Article 10U.K.

This Decision shall enter into force on the date following that of its publication in the *Official Journal of the European Union*.                  

## [F1ANNEX I]U.K.LIST OF INSTITUTIONS REFERRED TO IN ARTICLE 1(a)

SBERBANK

VTB BANK

GAZPROMBANK

VNESHECONOMBANK (VEB)

ROSSELKHOZBANK

## [F5ANNEX IIU.K.LIST OF LEGAL PERSONS, ENTITIES OR BODIES REFERRED TO IN ARTICLE 1(2)(a)

          -  OPK OBORONPROM                          
          -  UNITED AIRCRAFT CORPORATION                          
          -  URALVAGONZAVOD                          

## ANNEX IIIU.K.LIST OF LEGAL PERSONS, ENTITIES OR BODIES REFERRED TO IN ARTICLE 1(2)(b)

          -  ROSNEFT                          
          -  TRANSNEFT                          
          -  GAZPROM NEFT                          

## ANNEX IVU.K.LIST OF LEGAL PERSONS, ENTITIES OR BODIES REFERRED TO IN ARTICLE 3a

          -  JSC Sirius (optoelectronics for civil and military purposes)                          
          -  OJSC Stankoinstrument (mechanical engineering for civil and military purposes)                          
          -  OAO JSC Chemcomposite (materials for civil and military purposes)                          
          -  JSC Kalashnikov (small arms)                          
          -  JSC Tula Arms Plant (weapons systems)                          
          -  NPK Technologii Maschinostrojenija (ammunition)                          
          -  OAO Wysokototschnye Kompleksi (anti-aircraft and anti-tank systems)                          
          -  OAO Almaz Antey (state-owned enterprise; arms, ammunition, research)                          
          -  OAO NPO Bazalt (state-owned enterprise, production of machinery for the production of arms and ammunition)]                          

1

OJ L 78, 17.3.2014, p. 16.                           

2

OJ L 134, 29.5.2009, p. 1.