# EUR-Lex - 52011PC0590 - EN

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# 52011PC0590

**Joint Proposal for a COUNCIL REGULATION amending Regulation (EU) No 442/2011 concerning restrictive measures in view of the situation in Syria /* COM/2011/0590 final - 2011/0251 (NLE) */**

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EXPLANATORY MEMORANDUM

(1)
On 9 May 2011, the Council adopted Regulation
(EU) No 442/2011 concerning restrictive measures in view of the situation in
Syria.

(2)
On 2 September 2011, the Council amended
Regulation (EU) No 442/2011 to extend the measures against Syria, including an
expansion of the listing criteria, and a prohibition on the purchase, import or
transportation of crude oil from Syria.

(3)
The Council further reached political agreement
on the adoption of additional measures, namely a prohibition on invesment in
the crude oil sector, and additional listings.

(4)
The Council also decided to prohibit the
delivery of Syrian banknotes to the Central Bank of Syria, and adjust the
provisions protecting economic operators against claims related to the
implementation of sanctions. Additionally the Council decided to freeze certain
Syrian financial assets, while ensuring that this does not prevent legitimate
transactions with Syria.

(5)
These measures fall within the scope of the
Treaty on the Functioning of the European Union and, therefore, notably with a
view to ensuring their uniform application by economic operators in all Member
States, regulatory action at the level of the Union is necessary in order to
implement them.

2011/0251 (NLE)

Joint Proposal for a

COUNCIL REGULATION

amending Regulation (EU) No 442/2011
concerning restrictive measures in view of the situation in Syria

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning
of the European Union, and in particular Article 215 thereof,

Having regard to Council Decision 2011/273/CFSP
concerning restrictive measures against Syria[1],

Having regard to the joint proposal from
the High Representative of the Union for Foreign Affairs and Security Policy
and the European Commission,

Whereas:

(1)
On 9 May 2011, the Council adopted Regulation
(EU) No 442/2011[2]
concerning restrictive measures in view of the situation in Syria.

(2)
By Regulation (EU) No 878/2011 of 2 September
2011[3], the Council amended Regulation
(EU) No 442/2011 to extend the measures against Syria, including an expansion
of the listing criteria, and a prohibition on the purchase, import or
transportation from Syria of crude oil.

(3)
By Council Decision 2011/.../CFSP of [ ] September
2011, the Council agreed on the adoption of further measures, namely a
prohibition on investment in the crude oil sector, the addition of further
listings, the prohibition of the delivery of Syrian banknotes and coins to the
Central Bank of Syria, and the freezing of certain Syrian assets outside Syria,
as well as some adjustments to the provisions protecting economic operators
against claims related to the implementation of sanctions.

(4)
These measures fall within the scope of the
Treaty on the Functioning of the European Union and, therefore, notably with a
view to ensuring their uniform application by economic operators in all Member
States, regulatory action at the level of the Union is necessary in order to
implement them.

(5)
In order to ensure that the measures provided
for in this Regulation are effective, this Regulation must enter into force
immediately,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EU) No 442/2011 is amended as
follows:

(1)          In Article 1, the
following point is inserted

“(j) ‘Syrian person, entity or body’
means:

(i) the State of Syria or any public authority
thereof;

(ii) any natural or legal person in, or
resident in, Syria;

(iii) any legal person, entity or body having
its registered office in Syria;

(iv) any legal person, entity or body, inside
or outside Syria, owned or controlled directly or indirectly by one or more of
the above mentioned persons or bodies;”

(2)          The following Article 2a
is inserted:

“Article 2a

It shall be prohibited to sell, supply,
transfer or export, directly or indirectly, new Syrian denominated banknotes
and coinage, printed or minted in
the EU, to the Central Bank of
Syria.”

(3)          The following Article 3c is
inserted:

“Article 3c

1.
The following shall be prohibited:

(a)
the granting of any financial loan or credit to
any natural or legal Syrian person, entity or body referred to in paragraph
(2);

(b)
the acquisition or extension of a participation
in any Syrian person, entity or body referred to in paragraph (2);

(c)
the creation of any joint venture with any natural
or legal Syrian person, entity or body referred to in paragraph (2);

(d)
the participation, knowingly and intentionally,
in activities the object or effect of which is to circumvent the prohibitions
referred to in points (a), (b) and (c).

2.
The prohibitions in paragraph (1) shall apply to
any natural or legal Syrian person, entity or body engaged in the exploration,
production or refining of crude oil.

3.
For the purposes of paragraph 2 only, the
following definitions shall apply:

(a)
‘exploration of crude oil’ includes the
exploration for, prospection of and management of crude oil reserves, as well
as the provision of geological services in relation to such reserves;

(b)
‘refining of crude oil’ means the processing,
conditioning or preparation of oil for the ultimately final sale of fuels.”

4.
The prohibitions in
paragraph 1:

(a)
shall be without prejudice to the execution of
an obligation arising from contracts or agreements concluded before [.../.../... ];

(b)
shall not prevent the extension of a
participation, if such extension is an obligation under an agreement concluded
before [.../ ... / ...].”

(4)          The following Article 4a
is inserted:

"Article 4a

All funds and economic resources belonging
to, owned or controlled by persons, entities and bodies listed in Annex IIa and
located outside Syria on [.../ ... / 2011] shall be frozen.”

(5)          Article 10a is replaced by
the following:

"Article
10a

No claims, including for compensation or indemnification
or any other claim of this kind, such as a claim of set‑off, , fines or
claims under a guarantee, claims for extension or payment of a bond, financial
guarantee, including claims arising from letters of credit and similar
instruments in connection with any contract or transaction the performance of
which was affected, directly or indirectly, in whole or in part, by the
measures imposed by this Regulation, should be granted to the Government of
Syria, its public bodies, corporations and agencies, or to any person or entity
claiming through it or for its benefit."

Article 2

Annex II to Regulation (EU) No 442/2011 is
amended in accordance with Annex I to this Regulation

Article 3

Annex II is inserted as Annex IIa to Regulation (EU)
No 442/2011.

Article 3

Annex IV to Regulation (EU) No 442/2011 is
replaced by Annex III to this Regulation.

Article 4

This Regulation shall enter into force on
the day of its publication in the Official Journal of the European Union.

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels, [...]

For
the Council

The
President
                                                                       [...]

ANNEX I

In Annex II to Regulation (EU) No 442/2011,
the following entries are added:

"[additional names to be proposed by
Council]"

ANNEX
II

“ANNEX IIa

List of natural and legal persons,
entities or bodies referred to in Article 4a

[names to be proposed by Council]"

ANNEX
III

“ANNEX
IV

List
of Petroleum Products

HS Code         Description

2709 00           Petroleum oils and oils
obtained from bituminous minerals, crude:

2710    Petroleum
oils and oils obtained from bituminous minerals, other than crude; preparations
not elsewhere specified or included, containing by weight 70 % or more of
petroleum oils or of oils obtained from bituminous minerals, these oils being
the basic constituents of the preparations; waste oils:

2712    Petroleum
jelly; paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite,
lignite wax, peat wax, other mineral waxes, and similar products obtained by
synthesis or by other processes, whether or not coloured:

2713    Petroleum
coke, petroleum bitumen and other residues of petroleum oils or of oils
obtained from bituminous minerals:

2714    Bitumen
and asphalt, natural; bituminous or oil-shale and tar sands; asphaltites and
asphaltic rocks:

2715 00
00      Bituminous mixtures based on natural asphalt, on natural bitumen, on
petroleum bitumen, on mineral tar or on mineral tar pitch (for example,
bituminous mastics, cut-backs)”

[1]               OJ L 121, 10.5.2011, p. 11.

[2]               OJ L 121, 10.5.2011, p. 1

[3]               OJ L 228, 3.9.2011, p. 1