COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 419 final 
Brussels, 05.10.1994 
Proposal for a 
COUNCIL REGULATION (EC) 
suspending certain elements of the embargo of the Federal Republic of Yugoslavia 
(Serbia and Montenegro) 
Proposal for a 
COUNCIL REGULATION (EC) 
introducing a further discontinuation of the economic and financial relations between the 
European Community and the areas of Bosnia Herzegovina under the control 
of Bosnian Serb forces 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
The Security Council of the United Nations has decided to suspend the embargo of the 
Federal Republic of Yugoslavia (Serbia and Montenegro) with regard to some flights to 
and from Belgrade airport, the ferryservice Bar-Bari and cultural and sport exchanges. 
The suspension is a consequence of the the support by the authorities of the Federal 
Republic of Yugoslavia (Serbia and Montenegro) to the proposed territorial settlement 
for the Republic of Bosnia and Herzegovina and for the decision of the said authorities to 
close the border between the Federal Republic of Yugoslavia (Serbia and Montenegro) 
and the areas of the Republic of Bosnia and Herzegovina under control of the Bosnian 
Serb forces for almost all commercial trade, and for thir willingness to obtain 
international assistance with regard to this closure. 
As a result of the decision of the Security Council, the legislation in the European 
Community has to be adapted. 
The present proposal of the Commission to the Council aims to introduce the necessary 
changes in the legislation with regard to the subjects falling under the EC Treaty. 
*L 
WÊk REGULATION (EC) No ...794 
suspending certain elements of the embargo of the Federal Republic of Yugoslavia 
(Serbia and Montenegro) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Articles 228 A and 73 G thereof, 
Having regard to Council Decision 94/.../CFSP of 1994, concerning the Common 
position, defined on the basis of Article J2 of the Treaty on European Union, regarding 
the suspension of certain elements of the embargo of the Federal Republic of Yugoslavia 
(Serbia and Montenegro) as decided upon by the United Nations Security Council in its 
resolution 943 (1994), 
Having regard to the proposal of the Commission, 
Having regard to the opinion of the Monetary Committee, 
Whereas the United Nations Security Council, in view of the support by the authorities of 
the Federal Republic of Yugoslavia (Serbia and Montenegro) to the proposed territorial 
settlement for the Republic of Bosnia and Herzegovina and in view of the report of the 
Secretary General of the United Nations with regard to the closure of the border between 
the Federal Republic of Yugoslavia (Serbia and Montenegro) and the areas of the 
Republic of Bosnia and Herzegovina under the control of the Bosnian Serb forces, has 
decided in its Resolution 943 (1994) to suspend certain elements of the Federal Republic 
of Yugoslavia (Serbia and Montenegro) 
1 
2. 
Whereas the same Security Council has also decided in the said resolution under which 
conditions the suspension may be extended or terminated ; 
Whereas under these conditions the Community has to adapt the existing legislation 
accordingly, and in particular Council Regulation (EEC) No 990/93, 
Whereas the conditions agreed upon by the Security Council for the extension or 
termination of the suspension of restrictions call for a mechanism which will enable the 
European Community to extend or terminate the suspension within the time limits 
imposed by the Security Council; 
HAS ADOPTED THIS REGULATION: 
Article 1 
Article 1 paragraph 2(a) of Council Regulation (EEC) No. 990/93 is suspended, insofar 
as civilian passenger flights, carrying only passengers and personal effects and no cargo, 
to and from Belgrade airport are concerned. 
Article 2 
Article 1 paragraph 1 c) of Council Regulation (EEC) No 990/93 is suspended insofar as 
the ferry service, carrying only passengers and personal effects and no cargo, between 
Bar in the Federal Republic of Yugoslavia (Serbia and Montenegro) and Bari in Italy is 
concerned. 
3. 
Article 3 
All restrictions with regard to the provision of goods and services to the Federal Republic 
of Yugoslavia (Serbia and Montenegro) and in particular the provisions of Article 1 
paragraph 1 a, b, d and e of Regulation (EEC) 990/93 are suspended as far as the flights 
and ferry service permitted under Articles 1 and 2 above are concerned. 
Article 4 
The provisions of Article 8 of Council Regulation (EEC) No 990/93 are suspended with 
regard to vessels and aircraft, which has not been impounded at 23 September 1994, 
insofar they are used for the purpose of the ferry service or flights permitted under this 
Regulation.. 
Article 5 
1. This Regulation shall be in force till.... 1994 . 
2. The Commisison is hereby empowered to extend or to repeal this Regulation in 
accordance with the decisions by the Security Council of the United Nations under the 
provisions of its resolution 943 (1994). 
Article 6 
The provisions of this Regulation are applicable without prejudice to the provisions of 
Council Regulation (EC) 1733/94 of 11 July 1994, 
< 
Article 7 
This Regulation shall enter into force on the day of its publication in the OfficialJournal 
of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at , 1994 
For the Council 
EXPLANATORY MEMORANDUM 
In view of the refusal of the Bosnian Serb party to accept the territorial settlement for BH 
accepted by all other interested parties, the Security Council of the United Nations has 
decided in its resolution 942 (1994) to reinforce and extend the measures imposed by its 
previous resolutions with regard to the areas of BH under the control of the Bosnian Serb 
forces. 
The present proposal of the Commisison to the Council aims to introduce the necessary 
legislation to give effect to the decisions of the Security Council for the subjects falling 
under the EC Treaty. 
~> 
J^REGULATION (EC) No ..,/94 
introducing a further discontinuation of the economic and financial relations between the 
European Community and the areas of Bosnia Herzegovina under the control of Bosnian 
Serb forces 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Community, and in particular 
Articles 228A and 73G thereof, 
Having regard to Council Decision 94/.;./CFSP of.... 19°4, concerning the Common 
position, defined on the basts of Article J.2 of the Treaty on European Union, regarding 
the further discontinuation of the economic and financial relations between the European 
Community and the areas of Bosnia Herzegovina under the control of Bosnian Serb 
forces, 
Having regard to the proposal of the Commission, 
Having regard to the opinion of the Monetary Committee 
Whereas the United Nations Security Council, in view of the refusal of the Bosnian Serb 
party to accept the settlement accepted by all other interested parties, and acting under 
Chapter VII of the Charter of the United Nations, has decided in its resolution 942 (1994) 
to reinforce and extend the measures imposed by its previous resolutions with regard to 
the areas of the Republic of Bosnia Herzegovina under the control of Bosnian Serb 
forces, 
Whereas under these conditions me The European Comnnimty has to reirforce and 
extend the measures imposed by Cowicil Regulation (EEC) No. 990/93, 
ï 
HAS ADOPTED THIS REGULATION: 
DEFINITIONS 
Article 1 
For the purpose of this Regulation 
1 ) 'economic activities' means: 
a) all activities of an economic nature, including commercial, financial and 
industrial activities and transactions, in particular all activities of an economic nature 
involving the use of or dealing in, with or in connection with property, or interest in 
property; 
b) the exercise of rights relating to property or interests in property; and 
c) the establishment of any new body or change in management of an existing 
body. 
2) 'property or interest in property' means : 
funds, financial, tangible and intangible assets, property rights and publicly and 
privately traded securities and debt instruments, and any other financial and economic 
resources. 
3) 'to freeze funds or other financial assets or resources' means: 
to take action to prevent any change in volume, amount, location, ownership, 
possession, character, destination or other change that would enable the use of the funds 
or other financial assets or resources concerned. 
1 
4) 'funds or other financial assets or resources' means: 
funds or other financial assets or resources of whatever kind or origin, including, 
but not limited to, cash, liquid assets, dividends, interest or other income on shares, 
interest, bonds or debt obligations or amounts derived from an interest in, or the sale or 
other disposal of, or any other dealing with, tangible and intangible assets and property 
rights. 
5)'designated person or body means'means: 
a) any body, wherever incorporated or constituted, which is owned or controlled, 
directly or indirectly, by 
(i) any person in, or resident in, or any body, including any commercial, 
industrial or public utility undertaking, in the areas concerned; or 
(ii) any body incorporated in or constituted under the law of the areas 
concerned; 
as well as 
b) any person or body, including those identified by States for the purpose of 
Resolution 942 ( 1994) of the Security Council of the United Nations, found to be acting 
for or on behalf of and to the benefit of any body, including any commercial, industrial or 
public utitlity undertaking, in the areas concerned, or any body mentioned under a) 
above. 
6)'areas concerned'means: 
those areas of the Republic of Bosnia and Herzegovina under the control of 
Bosnian Serb forces. 
X<* 
PROHIBITION OF ECONOMIC ACTIVITIES 
Article 2 
No economic activities shall be carried on by any designated person or body unless they 
have been authorized by the competent authorities of the Member States . 
Article 3 
The competent authorities of the Member States may authorize an economic activity by a 
designated person or body, having satisfied themselves on a casc-by-casc basis that the 
activity does not result in the transfer of property or interest in property to any designated 
person or body. 
Article 4 
Existing authorizations under Article 3 shall be revoked by the competent authorities of 
the Member States, and no further authorizations issued in respect of any person or body 
violating the measures imposed by this Regulation or violating any measures imposed by 
Regulations (EEC) 990/93 or (EC) 1733/94 , where these latter violations have occurred 
after the entry into force of this Regulation. 
Article 5 
Nothing in this Regulation shall prevent the competent authorities of the Member States 
to issue an authorization if the economic activity concerned serves solely the purpose of 
providing supplies intended strictly for medical purposes and foodstuffs notified to the 
Comittee established by resolution 724 (1991) of the said Security Council, or 
commodities and products for essential humanitarian needs approved by this Committee. 
FREEZING OF FUNDS OR OTHER FINANCIAL ASSETS OR RESOURCES 
Article 6 
All funds or other financial assets or resources belonging to or accruing to any designated 
person or body or to any body in the areas concerned, including any commercial, 
industrial or public undertaking, shall be frozen. 
Article? 
Provided that the competent authorities of the Member States are satisfied that payments 
to persons outside their territories will be used for the purposes or in connection with the 
activities and transactions for which an authorization is sought, Article 6 does not apply 
with regard to payments 
a) made in connection with authorized economic activities and after the 
competent authorities of the Member States having been satisfied ©n* case-by-case basis 
that the payments do not result in the transfer of funds or other financial assets or 
resources to any designated person or body. 
b) made in connection with transactions authorized by the Government of the 
Republic of Bosnia and Herzegovina with regard to persons or bodies within its territory. 
PROHIBITION OF PROVISION OF SERVICES 
AiticleS 
It shall be prohibited to provide financial and/or non-financial services to any person or 
body for me purposes of any business carried on in the areas concerned. 
Article 9 
*7l 
Provided that the competent authorities of the Member States are satisfied that the 
conditions below are met, Article 8 does not apply to 
a) telecommunications, postal services and legal services consistent with this 
Regulation as well as with Regulations (EEC) 990/93 and (EC) 1377/94; 
b) services whose supply may be necessary for humanitarian or other exceptional 
purposes, as approved on a case-by-case basis by the abovementioned Committee; and 
c) services authorized by the Government of the Republic of Bosnia and 
Herzegovina. 
Article 10 
Commercial riverine traffic shall not enter any port in the areas concerned unless 
authorized on a case-by-case basis by the abovementioned Committee, by the 
Government of the Republic of Bosnia and Herzegovina for its territory or in case of 
force majeure. 
Article 11 
All shipments of commodities and products destined for the areas concerned shall be 
properly manifested and either be physically inspected by the Sanctions Assistance 
Missions or the competent authontes at loading to verify and seal their contents, or be 
laden in a manner which permits adequate physical verification of the contents. 
Article 12 
The competent authorites of the Member States shall, in notifying or submitting 
applications to the said Committee in respect of supplies intended strictly for medical 
purposes and foodstuffs and essential humanitarian supplies in respect of the areas 
concerned, report to the Committee for information purposes on the source of funds from 
which payment for the supplies is to be made. 
GENERAL PROVISIONS 
Article 13 
1. Member States shall take the necessary measures to ensure the implementation of this 
Regulation, including the imposition of sanctions where the provisions of this Regulation 
are infringed. 
2. Member States shall inform the Commission and the Member States concerned of the 
measures taken under paragraph 1 and of all other relevant information at their disposal 
in connection with this Regulation, in particular on the identity of designated persons 
and of authorizations given under Article 3. 
3. The names and adresses of the competent authorities of the Member States referred to 
in this Regulation are contained in the Annex. 
4. The Commission is hereby empowered to amend the Annex on the basis of 
notilicationss of the Member States. Sucli amendments shall be published in the Oilicial 
Journal of the European Communities. 
Article 14 
The provisions of this Regulation shall not apply to activities related to UNPROFOR, the 
International Conference on the Former Yugoslavia or the European Community 
Monitoring Missions. 
1<1 
Article 15 
The provisions of this Regulation are applicable without prejudice to the provisions of 
Council Regulation (EEC) 990/93, in particular its Articles 3,4 and 5, 
Article 16 
This Regulation shall apply within the territory of the Community including its air space 
and in any aircraft or on any vessel under the jurisdiction of a Member State and to any 
person elsewhere who is a national of a Member State and any body elsewhere which is 
incorporated or constituted under the law of a Member State. 
Article 17 
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......... 1994 
For the Council 
/T 
ISSN 0254-1475 
COM(94) 419 final , 
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