COMMISSION OF THE EUROPEAN COMVIUNITIES 
C0M(94) 91 final 
Brussels, 25.03.1994 
Proposal for a 
COUNCIL REGULATION (EC 
INïSÏ? preventing the supply of certain goods and services to Libya and 
restricting the use of funds or 
other financial resources owned or 
controlled by Libya 
m^sm 
(presented by the Commission) 
PXPt AMATORY MEMORANDUM 
The Council of the European Union adopted on 22 November 1993 a common 
position regarding the implementation of Resolution 883 (1993) of the 
Security Council of the United Nations, by deciding that the economic 
relations with Libya should be reduced in accordance with the relevant 
provisions of that resolution. 
Consequently, and in accordance with Article 228A of the EC Treaty, the 
Commission made the pertinent proposals for the measures to be taken by 
the European Community. 
The Commission proposals at that time did not deal with paragraph 3 of 
the said Resolution which deals primarily with the freezing of assets 
of certain Libyan persons and bodies. The reason for this was that the 
new Article 73G of the EC Treaty, which, in combination with Article 
228a, enables the Community to take urgent measures with regards to the 
movement of capital and payments to third countries entered into force 
only on 1 January 1994. 
The Commission undertook however, to propose to the Council after 1 
January a consolidated Regulation, covering all provisions of 
Resolution 883 (1993) to which Article 73G and 228A apply, thereby 
enabling the Council to adopt already before 1 December 1993 at least 
that part of the Community legislation which could be based on Article 
228a only. 
In the meantime legislation covering the freezing of Libyan assets was 
introduced by the Member States individually. 
The present proposal covers now all the provisions of Resolution 
883(1993) falling under Articles 73G and 228A of the EC Treaty. 
In order to maintain the transparency of the Community legislation with 
regard to the Libyan embargo, the proposal incorporates the existing 
provisions of Council Regulation (CE) N° 3274/93 of 29 November 1993, 
which will be repealed when the Council adopts the present proposal. 
Account has been taken of the comments received from Member States with 
regard to the Annex to the last mentioned Regulation. The Annex has 
been revised accordingly, in particular the provision under paragraph 
VI. 
The freezing of Libyan assets and related provisions of paragraph 3 of 
resolution 883 (1993) is dealt with in Articles 4,5 and 6 of the 
proposed Regulation. 
A comparison of these Articles with the relevant provisions of the 
legislation of the Member States shows that the Commission has followed 
closely the approach taken by the Member States in the implementation 
of paragraph 3 of Resolution 883(1993). Comments received from the 
banking sector have further enabled the Commission to take into account 
some practical implications of the provision of the said paragraph. 
However, some differences exist between the national legislation of the 
Member States and the present proposal, especially with regard to the 
provision of funds or financial resources other than the ones that are 
frozen, as well as the character and conditions for exceptions to be 
granted. The present proposal spells out these exceptions quite 
specifically. 
The present proposal is also based on the assumption that the Security 
Council, when adopting Resolution 883 (1993), did not want to impose a 
comprehensive trade embargo, and that therefore the provisions with 
regard to the financial embargo should be interpreted in such a way 
that they would not result in a trade embargo that would go beyond the 
explicit trade restrictions contained in the relevant Security Council 
resolutions. Such would for instance be the case if banks would not be 
allowed to provide guarantees in relation to permitted exports to 
Libya, or if payment of port fees in Libyan harbours would be 
prohibited. 
However, with the present proposal the Commission stayed within the 
limits of the exceptions that were agreed upon in the Sanctions 
Committee of the Security Council with regard to the embargos of Iraq 
and the Federal Republic of Yugoslavia (Serbia and Montenegro), and/or 
applied by Member States of the United Nations. 
In order to enable the economic operators concerned to obtain more 
easily the necessary information the proposed Regulation contains in 
its Annex 2 the list of the competent authorities of the Member States, 
dealing with the different aspects of the Libyan embargo. 
The overall approach chosen by the Commission is based on the wish to 
provide the maximum transparency for the economic operators concerned 
in respect of the Libyan embargo. Such a transparency will in 
particular reduce the possibilities of a distortion of competition by a 
significantly different application of the exceptions by the Member 
States. 
COUNCIL REGULATION (EC) No /94 
Of .... 1994 
preventing the supply of certain goods and services to Libya and 
restricting the use of funds or 
other financial resources owned or 
controlled by Libya 
The Council of the European union 
Having regard to the Treaty establishing the European Community, and 
in particular Articles 73G and 228A thereof, 
Having regard to Decision 93/614/CFSP adopted by the Council of the 
European Union on 22 November 1993,(1) 
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 persistent 
non-compliance by Libya with its Resolutions 731 (1992) and 748 (1992) 
and acting under Chapter VII of the Charter of the United Nations, has 
decided in its Resolution 883 (1993) of 11 November 1993 to extend the 
measures decided upon in its Resolution 748 (1992); 
Whereas the Council adopted accordingly Regulation (EC) N" 3274/93(2). 
(1) OJ N* L295, 30.11.93, p.7 
(2) OJ N* L295, 30.11.93, p.1 
^ <~f_ 5 -
Whereas, according to Article 73G EC Treaty, this Regulation should be 
extended, as from 1 January 1994, with provisions regarding the 
movement of capital and payments as regards Libya, as contained in 
paragraph 3 of United Nations Security Council resolution 883 (1993); 
Whereas the Regulation should Include provisions to prevent Libya from 
passing on effects of the embargo to the Community and should enable 
humanitarian or emergency demands to be met, as inter alia foreseen fh 
Resolutions 748 (1992) and 883 (1993) of the United Nations Security 
Counc iI ; 
Whereas the Regulation should not lead to unnecessary restrictions on 
the trade with Libya, nor to unjustified advantages to economic 
operators within the Community; 
Whereas the Community, for reasons of transparency, has decided to 
incorporate the additional measures within the framework of an all-
embracing Community instrument; 
Whereas under these conditions Council Regulation (EC) No 3274/93 can 
be repealed; 
HAS ADOPTED THIS REGULATION: 
Article 1 
1) Permission shall be denied to any aircraft to take off from, land 
in or overfly the territory of the Community if it is destined to 
land in or has taken off from the territory of Libya. 
2) Permission shall be granted when the particular flight has been 
approved on grounds of significant humanitarian need by the 
Committee set up pursuant to paragraph 9 of Resolution 748 (1992) 
of the United Nations Security Council. 
Article 2 
1) The activities and operation of all Libyan Arab Airlines offices 
shall be prohibited, and their offices be closed completely. 
2) Any commercial transaction with Libyan Arab Airlines shall be 
prohibited, including the honouring or endorsement of any tickets 
or other documents issued by that airline. 
Article 3 
1. The supply or provision to Libya, directly or indirectly, of the 
goods and/or services listed in the Annex to this Regulation shall 
be prohibited. 
2. The supply or provision to Libya of these goods and/or services may 
however be allowed by the competent authorities of the Member 
States provided that the end use of these goods and/or services 
differs from the end uses described in the Annex to this 
Regulation. 
Article 4 
For the purposes of Articles 5 and 6: 
1. 'Libya' means the Government of Libya and/or any public authority 
of Libya and/or any Libyan undertaking. 
2. 'Libyan undertaking' means any commercial, industrial or public 
utility undertaking which is owned or controlled directly or 
indirectly by 
(i) The Government of Libya or public authorities of Libya, or 
(ii) any entity, wherever located or organized, owned or controlled by 
the persons or bodies mentioned under (i) above, or 
(Mi) any person identified by the competent authorities of the Member 
States as acting, for the purposes of this Regulation, on behalf of the 
persons or bodies mentioned under (i) and/or (ii) above. 
3. 'bank account' means an account held within the Community with a 
credit institution or other person or body, so authorized by the 
competent authorities of the Member States. 
4. 'funds or financial resources' means funds or financial resources 
of whatever kind or origin including, but not limited to, cash, 
liquid assets, payment claims, guarantees and documentary credits, 
funds derived or generated from property, investments, shares, 
bonds and other securities, as well as gold and other precious 
metals. 
Article 5 
1. The disposal by Libya of any funds or financial resources shall be 
prohibited. 
2. No funds or financial resources shall be made available, directly 
or indirectly, to or for the benefit of Libya. 
3. Any activity shall be prohibited whose object or effect it is to 
further the activities that are prohibited under paragraphs 1. and 
2. of this Article, except activities of a purely administrative 
character. 
8 
Article 6 
1. The prohibitions of Article 5 do not apply to funds or other 
financial resources which derive from the sale or supply of any 
petroleum or petroleum products, including natural gas and natural 
gas products, or agricultural products or commodities, originating 
in Libya and exported therefrom after 1 December 1993, provided 
that any such funds are paid into bank accounts used exclusively 
for these funds. 
2. The prohibition of Article 5(1) and 5(3) do not apply in cases of: 
(i) payment for the execution of contracts, in so far and to the extent 
that the execution took place before 1 December 1993; 
(ii) payment of salaries or similar payments including pensions, taxes 
or similar duties or charges for the administration of bank accounts or 
other financial resources; 
(iii) payment of premiums for health insurance and for those insurances 
which are obligatory within the Member State concerned; 
(iv) payment for flights permitted under paragraph 2 of Article 1 of 
this Regulation, and for the supply or provision of emergency equipment 
and equipment and services directly related to civilian air traffic 
control ; 
(v) payment for transactions of an exceptional nature and which 
otherwise do not contravene this Regulation; 
to the extent that the amount of payment exceeds the amount of funds 
and/or financial resources available from the supply or sale of goods 
and products mentioned in paragraph (1) of this Article, and provided 
the payments are made within the Community and an authorization has 
been obtained from the competent authorities of the Member States. 
3. Without prejudice to Article 5(1) and 6(1), the prohibition 
provided for in Article 5(2) and 5(3) do not apply in cases of: -
(a) payments of due interest or of similar remuneration on funds or 
financial resources and, 
(b) payments or other financial activities related to the execution of 
contracts or transactions with Libya which are not prohibited by this 
Régulât ion, 
provided that they take place within the Community and to the persons 
or bodies directly entitled thereto, and an authorisation has been 
obtained from the competent authorities of the Member States. 
4. The prohibition of Article 5(2) and 5(3) do not apply to payments 
to Libya within the Libyan territory for services rendered or goods 
supplied by Libya within this territory and within the framework of 
the execution of contracts and/or transactions which are not 
prohibited by this Regulation, and to the extent that these 
payments do not exceed the normal value of these goods and/or 
services. 
Art icle 7. 
1. Member States shall take the necessary measures to ensure the 
implementation of this Regulation, including the determination of 
sanctions, to be imposed where the provisions of this Regulation 
are infringed. 
10 
2. Member States shall inform each other and the Commission of the 
measures taken under paragraph 1 of this Article and of all other 
relevant information in connection herewith. 
3. Where exports are allowed under Article 3(2) and authorizations are 
given under Article 6(2) or 6(3), the information thereon, 
including the main facts and considerations, is provided within 30 
days. 
4. The names and addresses of the competent authorities of the Member 
States , referred to in Articles 3,4 and 6 are contained in Annex 2 
to this Regulation; 
The Commission is hereby empowered to amend Annex 2 to this Regulation 
on the basis of notifications of the Member States. 
Such amendments shall be published in the Official Journal of the 
European Communities. 
Article 8 
This Regulation shall apply notwithstanding any rights or obligations 
conferred or imposed by any international agreement or any contract 
entered into or any licence or permit granted before 1 December 1993. 
Art icle 9 
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. 
11 
Article 10 
Regulation (EC) No 3274/93 Is hereby repealed 
Art icle 11 
This Regulation shall enter into force on the day of its publication in 
the Official Journal of the European Communities. 
It shall apply as of 1 January 1994. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels 1993 
For the Counc 
The President 
12 
ANNEX I 
Products and services whose supply to Libya is prohibited under Article 
3 of this Régulât ion : 
A) 
any aircraft or aircraft components 
the provision of engineering and maintenance servicing of Libyan 
aircraft or aircraft components ; 
the entering into or renewal of arrangements for the provision of 
engineering and maintenance servicing of any aircraft or aircraft 
components within Libya or for the making available, for operation 
within Libya, of any aircraft or aircraft components; 
advice, assistance or training to Libyan pilots, flight engineers 
or aircraft and ground maintenance personnel associated with the 
operation of aircraft and airfields within Libya ; 
any certification of airworthiness for Libyan aircraft ; 
payment of new claims against existing direct insurance contracts 
for Libyan aircraft ; 
any new or renewal of direct insurance for Libyan aircraft ; 
with the exception of emergency equipment and equipment and 
services directly related to civilian air traffic control : 
any materials or components destined for the construction, 
improvement or maintenance of Libyan civilian or military 
airfields and associated facilities and equipment, or 
any engineering or other services destined for the maintenance 
of those airfields and associated facilities and equipment ; 
13 
B) 
(I) Pumps of medium or large size whose capacity is equal to or larger 
than 350 cubic metres per hour and drivers (gas turbines and 
electric motors) designed for use In the transportation of crude 
oiI and natural gas. 
(11)Equipment designed for use in crude oil export terminals : 
Loading buoys or single point moorings (SPM) 
Flexible hoses for connection between underwater manifolds 
(PLEM) and single point mooring and floating loading hoses of 
large sizes (from 12' to 16') 
Anchor chains. 
(I I I)Equipment not specially designed for use in crude oil export 
terminals but which because of their large capacity can be used for 
this purpose: 
Loading pumps of large capacity (4000 m3/H and above) and small 
head (10 bars or less) 
Boosting pumps within the same range of flow rates 
in-line pipe line inspection tools and cleaning devices (ie 
pigging tools) (16' and above) 
- Metering equipment of large capacity (1000 m3/H and above). 
(IV) Refinery equipment 
Boilers meeting American Society of Mechanical Engineers 1 
standards 
Furnaces meeting American Society of Mechanical Engineers 8 
standards 
Fractionation columns meeting American Society of Mechanical 8 
standards 
14 
Pumps meeting American Petroleum Institute 610 standards 
Catalytic reactors meeting American Society of Mechanical 
Engineers 8 standards 
Prepared catalysts, including the following : 
Catalysts containing platinum 
Catalysts containing Molybdenum 
V. Spare parts destined for the items in (I) to (IV) above. 
VI. Any types of equipment, supplies and grants of licencing 
arrangements for the manufacture or maintenance of the items in (1) 
to (V) above. 
15 
ANNEX il 
List of competent authorities mentioned in Articles 3(2), 4(2)(iii), 
4(3), 6(2)(3)(4): 
(NAMES AND ADRESSES TO BE PROVIDED IN DUE TIME BY THE MEMBER STATES) / 
16 
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COM (94) 91 final 
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