Proposal for a Council Regulation (EC) concerning the reduction of certain economic relations with the Federal Republic of Yugoslavia
Date: 1998-04-22
Institutions: European Commission
Subjects: Yugoslavia, economic relations, international sanctions, military equipment, trade restriction

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.04.1998 
COM(1998) 250 final 

Proposal for a 

COUNCIL REGULATION (EC) 

concerning the reduction of certain economic relations  with the 

Federal Republic of Yugoslavia 

(presented by the Commission) 

•XPEANATORY  MEMORANDUM 

In  view  of  the  serious  developments  in  the  Federal  Republic  of  Yugoslavia  (FRY)  regarding 
Kosovo,  the  Council  of  the  European  Union  adopted  on  19  March  1998  Common  Position 
98/240/CFSI\  which,  inter  alia,  provides  for  action  by  the  Community  with  a  view  to 
reducing  certain  economic  relations  with  the  FRY  or the  Republic  of  Serbia.  This  Community 
action  requires  Community  legislation  on  the  basis  of  a  proposal  of  the  Commission.  The 
present  Commission  proposal  will  enable the Council  to adopt the appropriate  Regulation. 

The  Commission  has  taken  fully  into  account  the  serious  threat  to  the  regional  peace  posed 
by  the  behaviour  of  the  governments  of  the  FRY  and  Serbia,  and,  therefore,  proposes  a 
Community  legislation  which  gives,  within  the  boundaries  of  international  law,  an  extensive 
interpretation  to the restrictions  contained  in the Common  Position. 

This  broad  approach  is  reflected  in  the  provisions  regarding  the  persons  and  bodies  adressed 
by  the  Regulation  (Article  5)  and  the  types  of  prohibited  government  support  in  relation  to 
export  credit  for  trade  with  or  investment  in  the  Republic  of  Serbia.  Hie  same  approach  is 
taken  in  respect  of  the  sale  or  supply  to  the  FRY  of  equipment  for  internal  repression  and 
terrorism.  For  reasons  of  time  constraints  this  proposal  contains  only  a  limited  list  of  such 
equipment.  However  the  use  of  the  already  existing  mechanism  contained  in  Article  2  for 
revising  and/or  supplementing  the  list will  enable  the Community  to reach  quick  decisions  in 
that  respect.  A  more  lengthy  decision  making  procedure  would  leave  the  FRY  too  much  time 
to acquire the equipment  which  should  be added  to the  list.  By providing  in Article  1 a) and 1 
d) that  not only  direct  but  also  indirect  supply  or sale of the said equipment  to the FRY  as  well 
as  supporting  activities  shall  be  prohibited,  the  competent  national  authorities  of  the  Member 
States  will  be  in  a  better  legal  position  to  deal  with  possible  efforts  to  circumvent  the 
sanctions. 

The  provisions  on  supply  or  sale  to  the  FRY  do  not  apply  to existing  contracts  or  transactions 
of  which  the  execution  has  already  started  (Article  1 b).  Similarly,  the  prohibition  to  provide 
or  use  government  financing  for  privatisations  in  the  Republic  of  Serbia  does  not  apply  to 
such  financing  for  which  legally  binding commitment  have already  been  undertaken  (Article 1 
c). 

Provisions  regarding  the  need  for  mutual  information  by  Commission  and  Member  States  or 
imposing  sanctions  on  violations  of  the  Regulation  (Articles  3 and  4)  will  make  a  necessary 
contribution  to the effectiveness  of the  Regulation. 

Council  Regulation (EC) No ..../98 

of....  1998 

concerning the reduction of certain economic relations  with the 

Federal  Republic of Yugoslavia 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to the Treaty  establishing  the European  Community,  and  in particular  Articles 
73g and 228a, 

Having  regard  to  Common  Position  98/240/CFSP  defined  by  the  Council  on  the  basis  of 
Article  J.2  of  the  Treaty  on  European  Union  on  restrictive  measures  against 
the  Federal 
Republic of Yugoslavia  ', 

Having regard to the proposal from the Commission, 

Whereas  the  said  Common  Position  provides  for  restrictive  measures  against  the  Federal 
Republic  of  Yugoslavia,  including  an  action  by  the  Community  for  the  reduction  of  certain 
economic relations; 

Whereas  certain of these measures fall  under the competence of the European Community ; 

Whereas,  therefore,  and  notably  with  a  view  to  avoiding 
distortion  of  competition, 
Community  legislation  is  necessary  for  the  implementation  of  these  measures,  as  far  as  the 
territory  of the Community  is concerned;  whereas such territory  is deemed  to encompass,  for 
the  purposes  of  this  Regulation,  the  territories  of  the  Member  States  to  which  the  Treaty 
establishing the European Community  is applicable ; 

Whereas  lor  reasons  of  expediency  the  Commission  should  be  empowered  to  supplement 
and/or  amend,  if  necessary,  the  list  of  equipment  for  internal  repression  or  terrorism  in 
accordance with the provisions of Regulation (EEC) No 2603/69, in particular its Articles 3, 4 
and 9; 

OJL95, 27.3.98, p. 1 

2 

Whereas  there  is  a  need  for  Commission  and  Member  States  to  inform  each  other  of  the 
measures  taken  under  this  Regulation  and  of  other  relevant  information  at  their  disposal  in 
connection  with this Regulation ; 

HAS ADOPTED THIS REGUEATION 

Article 1 

The following  shall be prohibited : 

a)  the supply or sale, directly or indirectly, to the Federal  Republic of Yugoslavia (Serbia and 

Montenegro) of the equipment contained  in the Annex  to this Regulation ; 

b) the  provision  and/or  use  of  government  and/or  other  official  financial  support,  insurance 
and/or guarantees in respect of new export credit  for trade or investment  in the Republic of 
Serbia or in relation  with renewal or extension  of existing export credit, if the execution  of 
the contract  or transaction  for  which  the export  credit  has been provided  has not yet  been 
started; 

c)  the provision  or use of government  and/or other official  financing  for  privatisations  in the 
Republic  of  Serbia  in  respect  of  which  no  legally  binding  commitments  have  been 
undertaken so far; 

d) any  activity  the  object  or  effect  of  which  is,  directly  or  indirectly,  to  promote  the 

transactions or activities referred  to in this Article. 

Article 2 

The Commission  is hereby empowered  to supplement  and/or amend the Annex  in accordance 
with the provisions of Regulation (EEC) No 2603/69, notably its Articles 3, 4 and 9. 

Such  supplements  and/or  amendments  shall  be  published  in  the  Official Journal  of  the 
European Communities. 

<f 

Article 3 

Each  Member  State  shall  determine  the  sanctions  to  be  imposed  where  the  provisions  of  this 
Regulation are infringed. 

Article 4 

The Commission  and the Member  States  shall  inform  each  other  of  the  measures taken under 
this  Regulation  and  supply  each  other  with  other  relevant  information  at  their  disposal  in 
connection  with  this  Regulation,  such  as  breaches  and  enforcement  problems,  judgments 
handed down by national courts or decisions of relevant international fora. 

This Regulation shall apply : 

Article 5 

-  within the territory of the Community  including its airspace, 
-  on board  any aircraft  or any vessel  under the jurisdiction of a Member  State, 
- 
- 

to any person elsewhere  who is a national of a Member State, 
to any body which is incorporated  or constituted under the law of a Member State. 

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.... 

For the Council 

The President 

Equipment  for internal  repression or terrorism, envisaged  by Article  1  a) 

ANNEX 

Crime control and detection equipment (e.g.) 

handcuffs 
leg irons 
shackles 
stun guns 
lasers 
shock  batons 
immobilization  guns 
police helmets and shields 
fingerprint  equipment 
Power controlled  searchlights 
Military construction equipment 
Components and parts for ammunition 
Bayonets 
Muzzle loading block firearms  (made after  1890) 
Military  helmets 
Bullet proof vests 
Equipment to make shotguns 
Ammunition hand loading equipment 
Communications  intercept devices 
Solid State optical  detractors 
Image intensifier  tube 
Focal plane arrays 
Direct view imaging equipment (visible or  infrared) 
Image intensifier  cameras 
Focal plane array cameras 
Sensor related  software 
Sensor related technology 
Launch, support equipment 
Demilitarized Military  aircraft 
Shotguns 
Shotgun shells 

é 

ISSN 0254-1475 

COM(98) 250 final 

DOCUMENTS 

EN 

10  11  09  02 

Catalogue number  : CB-CO-98-270-EN-C 

ISBN 92-78-35330-2 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

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