COMMISSION OF THE EUROPEAN COMMUNITIES 
m- • *••••:.-
R*55S 
Bill 
n==^=~ COM(93) 592 final 
Brussels, 23 November 1993 
Proposal for a 
COUNCIL REGULATION (EC) 
preventing the supply of certain goods and services to Libya 
Proposal for a 
COUNCIL REGULATION (EC) 
prohibiting the satisfying of claims with regard to contracts and 
transactions the performance of which was affected by the United 
Nations Security Council Resolution 883(1993) and related resolutions 
(presented by the Commission) 
p&?ej5r 
Proposal for a 
COUNCIL REGULATION (EC) 
preventing the supply of certain goods and services to Libya 
A 
EXPLANATORY MEMORANDUM 
1. The Security Council has decided to extend the scope of the embargo 
of Libya in view of the persistent non-compliance by Libya with its 
Resolutions 731 (1992) and 748 (1992). 
The Community has therefore to extend the scope of its Council 
Regulation (EEC) No. 945/92 accordingly. 
2. To enhance the transparency of the Community legislation with 
regard to the embargo of Libya, the existing embargo rules and the 
abovementioned extension of the embargo are contained in a 
consolidated form in the new Regulation hereby proposed to the 
Counc iI. 
As a consequence, the proposal also contains the repeal of the 
Regulation (EEC) No. 945/92. 
y\ 8L 
PROPOSAL for a 
COUNCIL REGULATION (EC) No /93 
Of 1993 
preventing the supply of certain goods and services to Libya 
The Council of the European Union 
Having regard to the Treaty establishing the European Community, and 
in particular Article 228A thereof, 
Kaving regard to the common position adopted by the Council of the 
Suropean Union on 22 November 1993/ 
Having regard to the proposal of the Commission/ 
Whereas the Community has adopted Council Regulation (EEC) No 945/92 of 
14 April 1992(D in accordance with Resolution 748 (1992) of the 
United Nations Security Council; 
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 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 (EEC) No 945/92 can 
be repealed; 
Whereas the Community legislation, in accordance with Resolutions 748 
(1992) and 883 (1993) of the United Nations Security Council, should 
not affect certain air transport services Justified by significant 
humanitarian needs neither prevent the supply of some emergency 
equipment and equipment and services directly related to civilian air 
traffic control ; 
HAS ADOPTED THIS REGULATION: 
(1) O.J. W L 101 of 15.4.1992, p. 53. 
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 
The provision to Libya, directly or indirectly, of the goods and/or 
services listed in the Annex to this Regulation shall be prohibited 
Article 4 
Funds or other financial resources, derived from the sale or supply of 
any petroleum or petroleum product, including natural gas and natural 
gas products, agricultural product or commodity, originating in Libya 
and exported therefrom after 1 December 1993, and accruing to any 
commercial, industrial or public utility undertaking which is owned or 
controlled, directly or indirectly, by the Government or public 
authorities of Libya, or any entity, wherever located or organised, 
owned or controlled by the Government or public authorities of Libya or 
any person identified by the appropriate authorities of the Member 
States as acting for the purposes of this Regulation, on behalf 
of the Government or public authorities of Libya or the abovementioned 
entities shall be paid into bank accounts which have been opened 
exclusively for these funds or financial resources after 1 December 
1993. 
Article 5 
The sale or supply to Libya of products falling under the same tariff 
nomenclature codes as the products listed in the Annex but whose sale 
or supply is not prohibited under Article 3 shall be subject to prior 
authorization to be issued by the competent authorities of the Member 
States. 
Article 6 
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. 
Article 7 
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 8 
Each Member State shall determine the sanctions to be imposed where the 
provisions of this Regulations are infringed. 
Article 9 
Council Regulation (EEC) No 945/92 is hereby repealed 
Article 10 
This Regulation shall enter into force on the day of its publication in 
the Official Journal of the European Communities, 
it shall be applicable as of 1 December 1993, 00.01 hours Eastern 
Standard Time in New York. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels 1993 
ANNEX 
Products and services whose supply to Libya is prohibited under Article 
3 of this Reguiat ion : 
A) 
any aircraft or aircraft components 
any engineering and maintenance servicing 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 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 civiI Ian 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 ; 
B) 
(I) Pumps of medium to 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. 
(I I)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. 
(IiI)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 small head (10 
bars) 
Boosting pumps within the same range of flow rates 
Inline 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 
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. 
Proposal for a 
COUNCIL REGULATION (EC) 
prohibiting the satisfying of claims with regard to contracts and 
transactions the performance of which was affected by the United 
Nations Security Council Resolution 883(1993) and related resolutions 
2 
EXPLANATORY MEMORANDUM 
1. The Security Council of the United Nations adopted Resolution 
883(1993), extending the embargo of Libya. 
Paragraph 8 of Resolution 883 1993 prohibits the satisfying of claims 
with regard to contracts and transactions, the performance of which 
was affected by the Resolution 883 (1993) and related resolutions. 
2. The formulation of paragraph 8 of UNSC Resolution 883(1993) 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 8 of UNSC Resolution 883 (1993), and given the 
abovementioned similarity between paragraphs 29 and 8 of the 
respective UNSC Resolutions, the present proposal follows, mutatis 
mutandis, the formulation of Council Regulation (EEC) 3541/92. 
3 
PROPOSAL for a 
COUNCIL REGULATION (EC) N' /93 of 
prohibiting the satisfying of claims with regard to contracts and 
transactions the performance of which was affected by the United 
Nations Security Council Resolution 883(1993) and related resolutions 
THE COUNCIL 
Having regard to the Treaty establishing the European Community, and in 
particular Article 228A thereof, 
E^-ving regard to the common position adopted by the Council of the 
European Union on 22 November 1993; 
Having regard to the proposal of the Commission 
Whereas, under Regulation (EEC) N* 945/92(1), and No (EC).. ./93^^ the 
Community has taken measures to prevent certain trade between the 
Community and Libya. 
Whereas, as a consequence of the embargo against Libya, the economic 
operators in the Community and third countries are exposed to the risk of 
claims by Libya; 
Whereas the United Nations Security Council has adopted Resolution 
883(1993) of 11 November 1993 which, in its paragraph 8, deals with 
claims by Libya in relation to contracts and transactions the performance 
of which was affected by measures imposed by the Security Council 
pursuant to Resolution 883(1993) and related resolutions; 
(1) OJ No L 101 of 15.4.1992, p.53 
(2) OJ L ... of 1993, p. .. 
-7o 
Whereas it is necessary to protect operators permanently against such 
claims and to prevent Libya from obtaining compensation for the negative 
effects of the embargo; 
Whereas the Community and its Member States have agreed that Libya must 
comply in full with the provisions of paragraph 8 of United Nations 
Security Council Resolution 883(1993) and consider that, in deciding 
whether to reduce or lift measures taicen against Libya, particular 
account must be taken of any failure by Libya to comply with paragraph 8 
of the Resolution 883(1993); 
HAS ADOPTED THIS REGULATION 
1 S) 
Article 1 
For the purposes of this Regulation : 
1. 'contract or transaction' 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 
transact ion; 
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 883(1993) 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 
prevention of certain trade with Libya; 
"£ 
4. 'person or body in Libya means 
(a) the Libyan state or any public authority thereof ; 
(b) any Libyan national of person resident in Libya. 
(c) any body having its registered office or headquarters in Libya. 
(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 883(1993) 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 Libya or acting through a person or body in 
Libya; 
(b) any person or body acting, directly or indirectly, on behalf of or 
for the benefit of one or more persons or bodies in Libya; 
(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 
Libya; 
nj 
(d) any other person or body referred to in paragraph of United Nations 
Security Council Resolution 883 (1993); 
(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 883(1993) 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 883 (1993) and related resolutions, Article 2 
sha11 not appI y : 
(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 883 (1993) 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; 
4M 
(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 883 (1993) 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 883 (1993) 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. 
'AS 
Article 6 
This Regulation shall enter into force on the day of its publication in 
the Official Journal of the European Communities. 
It shall be applicable as of 1 December 1993, 00.01 hours Eastern 
Standard Time in New York. 
This Regulation shall be binding in its entirety and directly applicable 
in all Member States. 
Done at Brussels 
For the CounciI 
The President 
4C 
ISSN 0254-1475 
COM(93) 592 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-93-625-EN-C 
ISBN 92-77-61656-3 
Office for Official Publications of the European Communities 
1^2985 Luxembourg 
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