Council Regulation (EC) No 1607/98 of 24 July 1998 concerning the prohibition of new investment in the Republic of Serbia
Date: 1998-07-24
Institutions: Council of the European Union
Subjects: Serbia, international sanctions, investment abroad, regulation of investments

L 209/16

EN

Official Journal of the European Communities

25. 7. 98

COUNCIL REGULATION (EC) No 1607/98

of 24 July 1998

concerning the prohibition of new investment in the Republic of Serbia

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 98/374/CFSP of 8
June 1998 defined by the Council on the basis of Article
J.2 of the Treaty on European Union concerning the
prohibition of new investment in Serbia (1),

Having regard to the proposal from the Commission,

Whereas this prohibition measure falls under the scope of
the Treaty establishing the European Community;

Whereas, therefore, and notably with a view to avoiding
distortion of competition, Community legislation is
necessary for the implementation of this measure, 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, under the conditions laid down in that
Treaty;

Whereas the competent authorities of the Member States
should, where necessary, be empowered to ensure compli-
ance with this Regulation;

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

HAS ADOPTED THIS REGULATION:

Article 1

1.
It shall be prohibited, as from the date of entry into
force of this Regulation, to transfer funds or other finan-
cial assets to:

(cid:190) the State or Government of the Federal Republic of

Yugoslavia and of the Republic of Serbia,

(cid:190) any person in, or resident in, the Republic of Serbia,
(cid:190) any body carrying out business in, incorporated or
constituted under the law of the Republic of Serbia,
(cid:190) any body owned or controlled by any of the govern-
ments, persons or bodies referred to in this paragraph,
the above

(cid:190) any person acting on behalf of any of

governments, persons or bodies,

(1) OJ L 165, 10. 6. 1998, p. 1.

in so far as such funds or other financial assets are trans-
ferred for the purposes of establishing a lasting economic
link with the Republic of Serbia, including the acquisi-
tion of real estate there.

For the purposes of paragraph 1,

2.
‘funds and other
financial assets' shall be understood to mean cash, liquid
interest or other income on shares,
assets, dividends,
bonds, debt obligations and any other securities, or
amounts derived from an interest in, or the sale or other
disposal of, or any other dealing with tangible and intan-
gible assets, including property rights.

3.
The prohibition of paragraph 1 is without prejudice
to the execution of contracts concluded before the entry
into force of this Regulation and without prejudice to the
execution of trade contracts for the supply of goods or
services on usual commercial payment conditions.

Article 2

Notwithstanding Article 1, the competent authorities of
the Member States may authorise the release of the funds
or other financial assets on a case-by-case basis, where
those funds or other financial assets are to be used solely
for projects in support of democratisation, humanitarian
and educational activities and independent media.

Article 3

Each Member State shall determine the sanctions to be
imposed where the provisions of
this Regulation are
infringed. Such sanctions must be effective, proportionate
and dissuasive.

Article 4

Without prejudice to the Community rules of confiden-
tiality, the competent authorities of the Member States
shall have the power to require banks, other financial
institutions and other bodies and persons to provide all
relevant information necessary for ensuring compliance
with this Regulation.

Article 5

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 inter-
national fora.

25. 7. 98

EN

Official Journal of the European Communities

L 209/17

Article 6

(cid:190) to any body which is incorporated or consituted under

This Regulation shall apply:

(cid:190) within the territory of the Community including its

airspace,

(cid:190) on board any aircraft or any vessel under the jurisdic-

tion of a Member State,

(cid:190) to any person elsewhere who is a national of a

Member State,

the law of a Member State.

Article 7

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, 24 July 1998.

For the Council

The President

W. SCH(cid:154)SSEL