Council Regulation (EC) No 723/2000 of 6 April 2000 amending Regulation (EC) No 1294/1999 concerning a freeze of funds and a ban on investment in relation to the Federal Republic of Yugoslavia (FRY)
Date: 2000-04-06
Institutions: Council of the European Union
Subjects: Yugoslavia, capital market, economic sanctions, international sanctions, investment, regulation of investments

7.4.2000

EN

Official Journal of the European Communities

L 86/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 723/2000

of 6 April 2000

amending Regulation (EC) No 1294/1999 concerning a freeze of funds and a ban on investment in
relation to the Federal Republic of Yugoslavia (FRY)

THE COUNCIL OF THE EUROPEAN UNION,

(5)

the same time the sanctions regime should be
At
adapted with a view to reducing the negative impact on
the interests of the Community without diminishing the
impact on the targeted natural and legal persons,

Having regard to the Treaty establishing the European
Community, and in particular Articles 60 and 301 thereof,

Having regard to Common Position 98/326/CFSP of 7 May
1998 concerning the freezing of funds held abroad by the
Governments of the Federal Republic of Yugoslavia (FRY) and
the Republic of Serbia (1), Common Position 98/374/CFSP of 8
June 1998 concerning the prohibition of new investment in
Serbia (2), and Common Position 1999/318/CFSP of 10 May
1999 concerning additional restrictive measures against the
Federal Republic of Yugoslavia (FRY) (3),

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

The Council adopted Regulation (EC) No 1294/1999 of
15 June 1999 concerning a freeze of funds and a ban on
investment in relation to the Federal Republic of Yugo-
slavia (FRY) (4).

The Council has agreed to maintain its overall policy
framework of applying maximum pressure on President
Milosevic through the strengthening of the sanctions
targeted at
the regime, without penalising the Serb
people.

Investments and financial relations in relation to the
FRY, especially the Province of Kosovo and the Republic
of Montenegro, may be increased by creating greater
legal certainty regarding the real targets of the sanctions.

these circumstances,

the
Under
the effectiveness of
existing financial sanctions should be enhanced,
inter
alia, by closing any loopholes that may exist and
improving the enforcement.

(1) OJ L 143, 14.5.1998, p. 1.
(2) OJ L 165, 10.6.1998, p. 1.
(3) OJ L 123, 13.5.1999, p. 1.
(4) OJ L 153, 19.6.1999, p. 63.

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1294/1999 shall be amended as follows:

1. The following recital shall be added to the preamble:

‘(12) The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (*).

(*) OJ L 184, 17.7.1999, p. 23.’

2. Points 1 and 2 of Article 1 shall be replaced by the

following:

‘1. Government of the FRY shall mean:

— the Government of the Federal Republic of Yugo-
its agencies, bodies or organs,

slavia at any level,

— any company, undertaking,

including
institution, and entity owned or

institution,

any financial
controlled by that Government,

— any socially-owned entity organised in the Federal

Republic of Yugoslavia,

— any successor

to such companies, undertakings,

institutions and entities as of 26 April 1999,

— any subsidiary or branch, wherever
such companies, undertakings,
entities, and

located, of
and

institutions

— any person acting or purporting to act for or on

behalf of any of the foregoing.

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2. Government of the Republic of Serbia shall mean:

— the Government of the Republic of Serbia at any

level,

its agencies, bodies or organs,

— any company, undertaking,

including
institution, and entity owned or

institution,

any financial
controlled by that Government,

— any socially-owned entity organised in the Republic

of Serbia,

— any successor

to such companies, undertakings,

institutions and entities as of 26 April 1999,

— any subsidiary or branch, wherever located, of such
institutions and entities,

companies, undertakings,
and

— any person acting or purporting to act for or on

behalf of any of the foregoing.’

3. Article 2 shall be replaced by the following:

‘Article 2

1.
Any person listed in Annex I shall be deemed to be
a person acting or purporting to act for or on behalf of
the Government of the FRY or the Government of the
Republic of Serbia.

Companies, undertakings,

entities
2.
listed in Annex II shall be deemed to be owned or
controlled by the Government of the FRY or the Govern-
ment of the Republic of Serbia.

institutions or

Annex II concerns only companies, undertakings,
institu-
tions or entities located, registered or incorporated outside
the territory of the FRY.

registered or

Companies, undertakings,

entities
institutions or
3.
located,
incorporated in the Province of
Kosovo shall be deemed to be neither owned or
controlled by the Government of the FRY or the Govern-
ment of the Republic of Serbia nor socially owned except
for those listed in Annex IV.

registered or

Companies, undertakings,

entities
institutions or
4.
incorporated in the Republic of
located,
Montenegro shall be deemed to be neither owned or
controlled by the Government of the FRY or the Govern-
ment of the Republic of Serbia nor socially owned except
for those listed in Annex V.

5.

In the rest of the FRY:

— companies,

or

institutions

undertakings,

entities
located, registered or incorporated in the FRY, with
the exception of
the Province of Kosovo and the
Republic of Montenegro, and listed in Annex VI shall
be deemed to be neither owned or controlled by the
Government of
the
Republic of Serbia nor socially owned,

the FRY or the Government of

— all other companies, undertakings, institutions or enti-
ties located, registered or incorporated in the FRY,
with the exception of the Province of Kosovo and the
Republic of Montenegro,
shall be deemed to be
owned or controlled by the Government of the FRY
or the Government of the Republic of Serbia or to be
socially owned.

Nothing in this Article shall discharge any natural
6.
or legal person from its obligations to exercise due dili-
gence in respect of acting in conformity with the provi-
sions of this Regulation.’

4. Article 6 shall be replaced by the following:

‘Article 6

1. Without prejudice to the applicable rules concerning
reporting, confidentiality and professional secrecy and to
the provisions of Article 284 of the Treaty, banks, other
financial
and other
insurance
bodies and persons shall:

institutions,

companies,

— provide immediately any information which would
such as
frozen in accordance with
to
executed pursuant

facilitate compliance with this Regulation,
accounts and amounts
Article 3 and transactions
Articles 7 and 8:

— to the competent authorities of the Member States
listed in Annex III where they are resident or
located, and

— directly or through these competent authorities to

the Commission,

— cooperate with the competent authorities

listed in

Annex III in any verification of this information.

2.
Any information provided or received in accordance
with this Article shall be used only for the purposes for
which it was provided or received.

3.
Any information directly received by the Commis-
sion shall be made available to the competent authorities
of the Member States concerned.’

5. In Article 7:

— paragraph 4 shall be replaced by the following:

Article 3(2), and Article 4 shall apply neither to
‘4.
projects within the Province of Kosovo nor to acquisi-
tions of any new, or extension of any existing, partici-
pation in, ownership of or control over real estate, a
company, undertaking,
institution or entity located,
if such
registered or incorporated in that province,
projects, acquisitions or extensions of such participa-
tion serve the reconstruction of Kosovo, the return of
refugees, or economic and regional cooperation, and
are officially approved or
such by
UNMIK, and/or the Community or its Member States.’,

recognised as

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— the following paragraph shall be added:

‘5.
For any payment made under paragraphs 1, 2,
3 or 4, and for any acquisition or extension of partic-
ipation made under paragraphs 3 or 4, conclusive
evidence of the fulfilment of the conditions and the
purposes
for
inspection by the
listed in
Annex III.’

shall be kept available for one year

competent authorities

6. In Article 8:

— paragraphs
following:

(1) and (2)

shall be replaced by the

In accordance with the provisions of Article 9,

‘1.
the Commission shall be empowered:

(a) to amend Annexes I, II, IV, V and VI;

(b) to grant individual or general authorisations:

(i) to unfreeze funds, or make funds available for
the benefit of the Government of the FRY or
the Government of the Republic of Serbia; or

(ii) to acquire or extend a participation in, owner-
ship of or control over real estate, a company,
undertaking, institution or entity referred to in
Article 4;

if not to do so would cause damage to the inter-
ests of the Community.

2. When amending Annex VI with a view to the
inclusion of a company, undertaking,
institution or
entity located within the FRY with the exception of
the Province of Kosovo and the Republic of Monte-
negro, the Commission shall take due account of the
following:

(a) evidence that such a company, undertaking,

insti-
tution or entity is able to withhold from the
Government of the FRY and the Government of
the Republic of Serbia, its revenues obtained from
transactions with natural or legal persons within
the Community;

(b) evidence that such a company, undertaking,

insti-
tution or entity is engaged in transactions with
natural or legal persons within the Community
not exceeding, on a monthly basis, a value of
EUR 100 000;

(c) evidence that

the activities of such a company,
undertaking, institution or entity do not cover the
following sectors: banking and financial services,
energy and fuel supply, production of or trade in
military or police equipment,
transport, petro-
chemicals,

iron and steel.

3. (a) Those companies, undertakings,

institutions or
the criterion in paragraph
entities which fulfil
2(b), and those in sectors not
listed in para-
graph 2(c), shall be presumed to be eligible for
inclusion
substantial
in Annex VI
grounds for non-inclusion are found.

unless

(b) If

is

that

there

evidence

conclusive

any
company, undertaking, institution or entity does
not meet the criteria in paragraph 2(b) or para-
graph 2(c) but does meet the criterion in para-
graph 2(a), such a company, undertaking, insti-
tution or entity shall be presumed to be eligible
for
inclusion in Annex VI unless substantial
grounds for non-inclusion are found.

4.
Any request by a legal or natural person for an
authorisation referred to in paragraph 1(b) or for an
IV, V or VI shall be
amendment of Annexes I,
made
the
authorities of
through the
Member States listed in Annex III.

competent

II,

The competent authorities of the Member States shall
verify, to the fullest extent possible, the information
provided by the persons making a request.’,

— the previous paragraph 3 shall become paragraph 5.

7. Article 9 shall be replaced by the following:

‘Article 9

For the purposes of

1.
to
(4), the Commission shall be assisted by the Committee
established under Regulation (EC) No 2271/96 (*).

implementing Article 8(1)

2. Where reference is made to this paragraph, Articles
4 and 7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/
468/EC shall be set at 10 working days.

3.

The Committee shall adopt its rules of procedure.

(*) OJ L 309, 29.11.1996, p. 1.’

8. Article 10 shall be replaced by the following:

‘Article 10

The Committee referred to in Article 9 shall examine all
questions concerning the application of
this Regulation,
which may be raised either by the chairman or by a
representative of a Member State.

The Committee shall regularly review the effectiveness of
the provisions of
this Regulation and the Commission
shall, on the basis of that review, report regularly to the
Council.’

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This Regulation shall enter into force on the day following its publication in the Official Journal of the
European Communities.

Article 1(3) shall be applicable as from 15 May 2000.

Article 2

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 6 April 2000.

For the Council

The President

J. GAMA