COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC93) 283 final 
Brussels, 22 June 1993 
Proposal for a 
IL REGULATION (EEC) 
prohibiting the satisfying of claims with regard to contracts and 
transactions the performance of which was affected by the United 
Nations Security Council Resolution 757(1992) and related resolutions 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. The Security Council of the United Nations adopted Resolution 
757(1992), imposing an embargo on the Federal Republic of Yugoslavia 
(Serbia and Montenegro). 
Paragraph 9 of this Resolution states "that all States, and the 
authorities in the Federal Republic of Yugoslavia (Serbia and 
Montenegro), shall take the necessary measures to ensure that no 
claim shall lie at the instance of the authorities in the Federal 
Republic of Yugoslavia (Serbia and Montenegro), or of any person or 
body in the Federal Republic of Yugoslavia (Serbia and Montenegro), 
or of any person claiming through or for the benefit of any such 
person or body, in connection with any contract or other transaction 
where its performance was affected by reason of the measures imposed 
by this resolution and related resolutions". 
2. The formulation of paragraph 9 of UNSC Resolution 757(1992) follows, 
mutatis mutandis, the formulation of paragraph 29 of UNSC Resolution 
687(1991), dealing with such claims by Iraq. 
3. The Community has implemented paragraph 29 of UNSC Resolution 
687(1991), by adopting Council Regulation (EEC) No 3541/92 of 7 
December 1992. 
4. The present proposal for a Council Regulation aims at implementing 
paragraph 9 of UNSC Resolution 757(1992), and given the 
abovementioned similarity between paragraphs 29 and 9 of the 
respective UNSC Resolutions, the present proposal follows, mutatis 
mutandis, the formulation of Council Regulation (EEC) 3541/92. 
J. 
PROPOSAL for a 
COUNCIL REGULATION (EEC) N° 
prohibiting the satisfying of claims with regard to contracts and 
transactions the performance of which was affected by the United 
Nations Security Council Resolution 757(1992) and related resolutions 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Whereas, under Regulation (EEC) N° 1432/92 (D , No 2656/92<2) and No. 
990/93 (3), the Community has taken measures to prevent trade between the 
Community and the Federal Republic of Yugoslavia (Serbia and Montenegro); 
Whereas, as a consequence of the embargo against the Federal Republic of 
Yugoslavia (Serbia and Montenegro), economic operators in the Community 
and third countries are exposed to the risk of claims by the Federal 
Republic of Yugoslavia (Serbia and Montenegro); 
Whereas the United Nations Security Council has adopted Resolution 
757(1992) of 30 May 1992 which, in its paragraph 9, deals with claims by 
the Federal Republic of Yugoslavia (Serbia and Montenegro) in relation to 
contracts and transactions the performance of which was affected by 
* 
measures imposed by the Security Council pursuant to Resolution 757(1992) 
and related resolutions; 
(1) OJ No L 151 of 3.6.1992, p. 1, repealed by Regulation (EEC) No.990/93 
of 28.04.1993 
(2) OJ L 266 of 12.9.1992, p. 27, repealed by Regulation (EEC) No. r390/S'3 
du 28.04 .1993 
(3) OJ L No. 102 of 28.04.93, p. 14 
Whereas it is necessary to protect operators permanently against such 
claims and to prevent the Federal Republic of Yugoslavia (Serbia and 
Montenegro) from obtaining compensation for the negative effects of the 
embargo; 
Whereas the Community and its Member States meeting in Political 
Cooperation have agreed that the Federal Republic of Yugoslavia (Serbia 
and Montenegro) must comply in full with the provisions of paragraph 9 of 
United Nations Security Council Resolution 757(1992) and consider that, 
in deciding whether to reduce or lift measures taken against the Federal 
Republic of Yugoslavia (Serbia and Montenegro), pursuant to paragraph 31 
of Security Council Resolution 820(1993), particular account must be 
taken of any failure by the Federal Republic of Yugoslavia (Serbia and 
Montenegro) to comply with paragraph 9 of the Resolution 757(1992); 
Whereas the Community and its Member States meeting in Political 
Cooperation have agreed to resort to a Community instrument in order to 
ensure uniform implementation, throughout the Community, of paragraph 9 
of United Nations Security Council Resolution 757(1992); 
Whereas such uniform implementation is essential for achieving the aims 
of the Treaty establishing the European Economic Community and in 
particular for avoiding distortion of competition; 
Whereas the Treaty does not provide, for the adoption of this Regulation, 
powers other than those of Article 235, 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament^4^ 
HAS ADOPTED THIS REGULATION 
!4) Opinion delivered on 
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Article 1 
For the purposes of this Regulation : 
1. 'contract or transaction1 means any transaction of whatever form and 
whatever the applicable law, whether comprising one or more contracts 
or similar obligations made between the same or different parties; 
for this purpose 'contract' includes a bond, financial guarantee and 
indemnity or credit whether legally independent or not and any 
related provision arising under or in connection with the 
transaction; 
2. 'claim' means any claim, whether asserted by legal proceedings or 
not, made before or after the date of entry into force of this 
Regulation, under or in connection with a contract or transaction, 
and in particular includes : 
(a) a claim for performance of any obligation arising under or in 
connection with a contract or transaction; 
(b) a claim for extension or payment of a bond, financial guarantee or 
indemnity of whatever form; 
(c) a claim for compensation in respect of a contract or transaction; 
(d) a counterclaim 
(e) a claim for the recognition or enforcement, including by the 
procedure of exequatur, of a judgement, an arbitration award or an 
equivalent decision, wherever made or given; 
3. 'measures decided on pursuant to United Nations Security Council 
Resolution 757(1992) and related resolutions» means measures of the 
United Nations Security Council or measures introduced by the 
European Communities or any State, country or international 
organization in conformity with, as required by, or in connection 
with the implementation of relevant decisions of the United Nations 
Security Council, or any action including any military action, 
authorized by the United Nations Security Council, in respect of the 
embargo of the Federal Republic of Yugoslavia (Serbia and 
Montenegro); 
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4. 'person or body in the Federal Republic of Yugoslavia (Serbia and 
Montenegro) means : 
(a) the state of the Federal Republic of Yugoslavia (Serbia and 
Montenegro) or any public authority thereof ; 
(b) any person in, or resident in the Federal Republic of Yugoslavia 
(Serbia and Montenegro); 
(c) any body having its registered office or headquarters in the Federal 
Republic of Yugoslavia (Serbia and Montenegro) 
(d) any body controlled, directly or indirectly, by one or more of the 
abovementioned persons or bodies. 
Without prejudice to Article 2, performance of a contract or transaction 
shall also be regarded as having been affected by the measures decided on 
pursuant to United Nations Security Council Resolution 757(1992) and 
related resolutions where the existence or content of the claim results 
directly or indirectly from those measures. 
Article 2 
1. It shall be prohibited to satisfy or to take any step to satisfy a 
claim made by : 
(a) a person or body in the Federal Republic of Yugoslavia (Serbia and 
Montenegro) or acting through a person or body in the Federal 
Republic of Yugoslavia (Serbia and Montenegro); 
(b) any person or body acting, directly or indirectly, on behalf of or 
for the benefit of one or more persons or bodies in the Federal 
Republic of Yugoslavia (Serbia and Montenegro); 
(c) any person or body taking advantage of a transfer or rights of, or 
otherwise claiming through or under, one or more persons or bodies in 
the Federal Republic of Yugoslavia (Serbia and Montenegro); 
(d) any other person or body referred to in paragraph 9 of United Nations 
Security Council Resolution 757/(1992); 
(e) any person or body making a claim arising from or in connection with 
the payment of a bond or financial guarantee or indemnity to one or 
more of the abovementioned persons or bodies, 
under or in connection with a contract or transaction the performance of 
which was affected, directly or indirectly, wholly or in part, by the 
measures decided on pursuant to United Nations Security Council 
Resolution 757(1992) and related resolutions. 
2. This prohibition shall apply within the Community and to any national 
of a Member State and any body which is incorporated or constituted 
under the law of a Member State. 
Article 3 
Without prejudice to the measures decided on pursuant to United Nations 
Security Council Resolution 757(1992) and related resolutions, Article 2 
shall not apply : 
(a) to claims relating to contracts or transactions, with the exception 
of any bond, financial guarantee or indemnity, in respect of which 
the persons or bodies referred to in the said Article prove to a 
court in a Member State that the claim was accepted by the parties 
prior to the adoption of the measures decided on pursuant to United 
Nations Security Council Resolution 757(1992) and related 
resolutions, and that those measures have had no effect on the 
existence or content of the claim; 
(b) to claims for payment under an insurance contract in respect of an 
event occurring prior to the adoption of the measures referred to in 
Article 2 or under an insurance contract where such insurance is 
compulsory under the law of a Member State; 
7- 7 -
(c) to claims for payment of sums paid into an account payment from which 
was blocked pursuant to the measures referred to in Article 2 
provided that such payment does not concern sums paid under bonds in 
respect of contracts referred to in the said Article; 
(d) to claims relating to contracts of employment subject to the law of 
any Member State; 
(e) to claims for payment for goods which the persons or bodies referred 
to in Article 2 prove to a court in a Member State were exported 
prior to the adoption of the measures decided on pursuant to United 
Nations Security Council Resolution 757(1992) and related resolutions 
and that those measures have had no effect on the existence or 
content of the claim; 
(f) to claims for sums which the persons or bodies referred to in Article 
2 prove to a court in a Member State are due under any loan made 
prior to the adoption of the measures decided on on pursuant to 
United Nations Security Council Resolution 757(1992) and related 
resolutions and that those measures have had no effect on the 
existence or content of the claim, 
provided that the claim includes no amount, by way of interest, charge or 
otherwise, to compensate for the fact that performance was, as a result 
of those measures, not made in accordance with the terms of the relevant 
contract or transaction. 
Article 4 
In any proceedings for the enforcement of a claim, the onus of proving 
that satisfying the claim is not prohibited by Article 2 shall be on the 
person seeking the enforcement of that claim. 
Article 5 
Each Member State shall determine the sanctions to be imposed where the 
provisions of this Regulation are infringed. 
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Article 6 
This Regulation shall enter into force on the day of its publication in 
the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable 
in all Member States. 
Done at Brussels 
For the Council 
The President 
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ISSN 0254-1475 
COM(93) 283 final 
DOCUMENTS 
EN 11 
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ISBN 92-77-56905-0 
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