Council Regulation (EC) No 1799/2003 of 13 October 2003 amending Regulation (EC) No 1210/2003 concerning certain specific restrictions on economic and financial relations with Iraq
Date: 2003-10-13
Institutions: Council of the European Union
Subjects: EU relations, Iraq, economic sanctions, foreign capital

L 264/12

EN

Official Journal of the European Union

15.10.2003

COUNCIL REGULATION (EC) No 1799/2003

of 13 October 2003

amending Regulation (EC) No 1210/2003 concerning certain specific restrictions on economic and
financial relations with Iraq

THE COUNCIL OF THE EUROPEAN UNION,

(5)

Having regard to the Treaty establishing the European Com-
munity, and in particular Articles 60 and 301 thereof,

Having regard to Council Common Position 2003/495/CFSP of
7 July 2003 on Iraq (1), as amended by Common Position
2003/735/CFSP (2),

Having regard to the proposal from the Commission,

Whereas:

It is noted that the absence of a freezing requirement
should be without prejudice to the applicability of the
normal rules on recognition and enforcement of arbitral
and foreign judgments. Moreover, no exemption should
be granted in respect of any judgment rendered in
breach of Council Regulation (EC) No 3541/92 of 7
December 1992 prohibiting the satisfying of Iraqi claims
with regard to contracts and transactions, the perfor-
mance of which was affected by United Nations Security
Council Resolution 661 (1990) and related resolu-
tions (4).

(6)

Since these amendments relate to the interpretation of
Resolution 1483(2003), it is appropriate to give them
retroactive effect to the date on which Regulation (EC)
No 1210/2003 entered into force,

(1)

(2)

(3)

(4)

Further to Resolution 1483 (2003) of the UN Security
Council of 22 May 2003, the Council has adopted Regu-
lation (EC) No 1210/2003 of 7 July 2003 concerning
certain specific restrictions on economic and financial
relations with Iraq (3), which, inter alia, makes provision
for freezing measures targeting the former Government
of Iraq and other State entities. These measures entered
into force on 9 July 2003.

HAS ADOPTED THIS REGULATION:

Article 1

A review of the relevant texts has led to the conclusion
that the Resolution does not require that the freezing
measures be applied to funds and economic resources of
ministries and other public entities that were not located
outside Iraq on the date of 22 May 2003, but left Iraq
after that date.

Regulation (EC) No 1210/2003 is hereby amended as follows:

1. Article 4 shall be replaced by the following:

‘Article 4

In view of this, the ban on making funds and economic
resources available to public entities in Iraq, which
impairs the functioning of such entities and unnecessa-
rily hampers the reconstruction of Iraq, should be recon-
sidered. As a result, the clarification concerning export-
related incoming payments made through public banks
listed in the relevant Annex of Regulation (EC) No 1210/
2003 becomes redundant.

Resolution 1483 (2003) presents the freezing of funds
and economic resources as the first step in a process
leading to the transfer thereof to the Development Fund
for Iraq. It also exempts funds and economic resources
being the subject of a lien or judgment established or
rendered prior to 22 May 2003 from that process. Main-
taining the freezing measures is, therefore, not suitable,
if the funds and economic resources concerned are expli-
citly exempt from the requirement to cause their transfer
to that Fund.

(1) OJ L 169, 8.7.2003, p. 72.
(2) See page 40 of this Official Journal.
(3) OJ L 169, 8.7.2003, p. 6.

All

funds and economic resources of

the previous
1.
Government of Iraq, or of any of the public bodies, corpora-
tions, including companies established under private law in
which the public authorities have a majority or controlling
stake, or agencies of that Government,
identified by the
Sanctions Committee and listed in Annex III, shall be frozen,
if they were located outside Iraq on the date of 22 May
2003.

2.
All funds and economic resources belonging to, or
owned or held by the following persons, identified by the
Sanctions Committee and listed in Annex IV, shall be
frozen:

(a) former President Saddam Hussein;

(b) senior officials of his regime;

(c) immediate members of their families; or

(d) legal persons, bodies or entities owned or controlled
directly or indirectly by the persons referred to in (a), (b)
and (c) or by any natural or legal person acting on their
behalf or at their direction.

(4) OJ L 361, 10.12.1992, p. 1.

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Official Journal of the European Union

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No funds shall be made available, directly or indirectly
3.
to, or for the benefit of, a natural or legal person, body or
entity listed in Annex IV.

No economic resources

4.
shall be made available,
directly or indirectly to, or for the benefit of, a natural or
legal person, body or entity listed in Annex IV, so as to
enable that person, body or entity to obtain funds, goods or
services.’;

2.

in Article 5, paragraph 2 shall be deleted;

3. Article 6 shall be replaced by the following:

‘Article 6

1.
1. By way of derogation from Article 4, the competent
authorities of the Member States, as listed in Annex V, may
authorise the release of frozen funds or economic resources,
if all of the following conditions are met:
(a) the funds or economic resources are the subject of a
judicial, administrative or arbitral lien established prior
to 22 May 2003 or of a judicial, administrative or arbi-
tral judgment rendered prior to that date;

(b) the funds or economic resources will be used exclusively
to satisfy claims secured by such a lien or recognised as
valid in such a judgment, within the limits set by applic-
able laws and regulations governing the rights of
persons having such claims;

(c) satisfying the claim is not in breach of Regulation (EC)

No 3541/92; and

(d) recognising the lien or judgment

is not contrary to

public policy in the Member State concerned.

2.
In all other circumstances, funds, economic resources
and proceeds of economic resources frozen pursuant to
Article 4 shall only be unfrozen for the purpose of their
transfer to the Development Fund for Iraq held by the
Central Bank of Iraq, under the conditions set out in UNSC
Resolution 1483 (2003).’;

4. the title of Annex V shall be replaced by the following:

‘List of competent authorities referred to in Articles 6, 7 and
8.’.

Article 2

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

It shall apply from 9 July 2003.

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

Done at Luxembourg, 13 October 2003.

For the Council

The President

F. FRATTINI