Proposal for a Council Regulation concerning restrictive measures against President Lukashenko and certain officials of Belarus
Date: 2006-04-25
Institutions: European Commission
Subjects: Belarus, civil servant, economic sanctions, electoral fraud, freedom of expression, head of State, presidential election, restriction of liberty

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.4.2006 
COM(2006) 190 final 

Proposal for a 

COUNCIL REGULATION 

concerning restrictive measures against President Lukashenko  
and certain officials of Belarus 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

(4) 

(5) 

On  24  March  2006,  the  European  Council  decided,  reacting  to  the  Presidential 
elections  in  Belarus  of  19  March  2006  and  related  events,  that  restrictive  measures 
should be applied against those responsible for the violation of international electoral 
standards  and  against  those  responsible  for  the  crackdown  on  civil  society  and 
democratic opposition. 

As Council is preparing a CFSP Common Position calling for measures freezing the 
funds and economic resources of the officials concerned and for a prohibition against 
making  funds  and  economic  resources  available  to  the  officials  concerned,  the 
Commission  proposes,  in  anticipation,  a  Regulation  implementing  such  restrictive 
measures. 

The Belarus officials against whom the proposed measures should be applied, will be 
identified by Council on the basis of Common Position 2006/…/CFSP. As that list is 
binding for the Community, the proposed Regulation makes explicit that Annex I can 
be  amended  on  the  basis  of  decisions  taken  in  respect  of  the  Annexes  to  Common 
Position 2006/…/CFSP only. 

Several  provisions  of  the  proposed  Regulation  are  taken  from  the  Guidelines  on 
Implementation and Evaluation of Restrictive Measures (Sanctions) in the Framework 
of the EU Common Foreign and Security Policy1.  

The  EU  Best  Practices  for  the  Effective  Implementation  of  Restrictive  Measures2 
provide additional guidance for the application of the proposed measures. 

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Council document No 15114/05. 
Council document No 15115/05. 

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Proposal for a 

COUNCIL REGULATION 

concerning restrictive measures against President Lukashenko  
and certain officials of Belarus 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having  regard  to  Common  Position  2006/…/CFSP3,  which  supplements  Common  Position 
2006/276/CFSP  concerning  restrictive  measures  against  certain  officials  of  Belarus  and 
repealing Common Position 2004/661/CFSP, 

Having regard to the proposal from the Commission4, 

Whereas: 

(1) 

(2) 

(3) 

On  24  March  2006,  the  European  Council  deplored  the  failure  of  the  Belarus 
authorities  to  meet  OSCE  commitments  to  democratic  elections,  considered  that  the 
Presidential  elections  of  19  March  2006  were  fundamentally  flawed  and  condemned 
the  action  of  the  Belarus  authorities  of  that  day  in  arresting  peaceful  demonstrators 
exercising  their  legitimate  right  of  free  assembly  to  protest  at  the  conduct  of  the 
Presidential  elections.  The  European  Council  therefore  decided  that  restrictive 
measures should be applied against those responsible for the violation of international 
electoral  standards  and  against  those  responsible  for  the  crackdown  on  civil  society 
and democratic opposition. 

Common  Position  2006/…/CFSP  provides  that  the  funds  and  economic  resources  of 
President  Lukashenko  and  certain  officials  of  the  government  of  Belarus  that  have 
been identified for this purpose should be frozen. 

These measures fall within the scope of the Treaty and, therefore, notably with a view 
to  ensuring  their  uniform  application  by  economic  operators  in  all  Member  States, 
Community  legislation  is  necessary  to  implement  them  as  far  as  the  Community  is 
concerned. 

(4) 

It is desirable to clarify the relationship between the obligations under this Regulation 
and other, contractual obligations that may be in conflict with the former. 

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OJ L  
OJ C , , p. . 

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(5)  Member  States  should  determine  the  penalties  applicable  to  infringements  of  the 
provisions  of  this  Regulation.  The  penalties  provided  for  should  be  proportionate, 
effective and dissuasive. 

(6) 

In order to ensure that the measures provided for in this Regulation are effective, this 
Regulation must enter into force immediately, 

HAS ADOPTED THIS REGULATION: 

Article 1 

For the purpose of this Regulation, the following definitions shall apply: 

(1) 

"funds" means financial assets and benefits of every kind, including but not limited 
to:  

(a) 

cash,  cheques,  claims  on  money,  drafts,  money  orders  and  other  payment 
instruments; 

(b)  deposits with financial institutions or other entities, balances on accounts, debts 

and debt obligations; 

(c) 

(d) 

(e) 

publicly- and privately-traded securities and debt instruments, including stocks 
and  shares,  certificates  representing  securities,  bonds,  notes,  warrants, 
debentures and derivatives contracts; 

interest, dividends or other income on or value accruing from or generated by 
assets; 

credit,  right  of  set-off,  guarantees,  performance  bonds  or  other  financial 
commitments; 

(f) 

letters of credit, bills of lading, bills of sale; 

(g)  documents evidencing an interest in funds or financial resources. 

(2) 

(3) 

(4) 

(5) 

"freezing of funds" means preventing any move, transfer, alteration, use of, access to, 
or  dealing  with  funds  in  any  way  that  would  result  in  any  change  in  their  volume, 
amount, location, ownership, possession, character, destination or other change that 
would enable the use of the funds, including portfolio management. 

"economic  resources"  means  assets  of  every  kind,  whether  tangible  or  intangible, 
movable or immovable, which are not funds but can be used to obtain funds, goods 
or services. 

"freezing of economic resources" means preventing their use to obtain funds, goods 
or services in any way, including, but not limited to, by selling, hiring or mortgaging 
them. 

“territory of the Community” means the territories of the Member States to which the 
Treaty is applicable, under the conditions laid down in the Treaty. 

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1. 

2. 

3. 

1. 

2. 

3. 

1. 

Article 2 

All  funds  and  economic  resources  belonging  to,  owned,  held  or  controlled  by 
President Lukashenko and certain other officials of Belarus as listed in Annex I, shall 
be frozen. 

No funds or economic resources shall be made available, directly or indirectly, to or 
for the benefit of natural or legal persons, entities or bodies listed in Annex I. 

The  participation,  knowingly  and  intentionally,  in  activities  the  object  or  effect  of 
which is, directly or indirectly, to circumvent the measures referred to in paragraphs 
1 and 2 shall be prohibited. 

Article 3 

The competent authority of a Member State, as listed in Annex II, may authorise the 
release  of  certain  frozen  funds  or  economic  resources  or  the  making  available  of 
certain funds or economic resources, under such conditions as it deems appropriate, 
after having determined that the funds or economic resources concerned are: 

(a) 

necessary  to  satisfy  the  basic  needs  of  persons  listed  in  Annex  I  and  their 
dependent  family  members,  including  payments  for  foodstuffs,  rent  or 
mortgage,  medicines  and  medical  treatment,  taxes,  insurance  premiums,  and 
public utility charges, 

(b) 

intended  exclusively  for  payment  of  reasonable  professional  fees  and 
reimbursement  of  incurred  expenses  associated  with  the  provision  of  legal 
services, or 

(c) 

intended exclusively for payment of fees or service charges for routine holding 
or maintenance of frozen funds or economic resources. 

If the competent authority of a Member State, as listed in Annex II, determines that 
the release of certain frozen funds or economic resources or the making available of 
certain funds or economic resources is necessary for extraordinary expenses, it shall 
notify  the  grounds  on  which  it  considers  that  a  specific  authorisation  should  be 
granted,  to  the  other  competent  authorities  and  the  Commission  at  least  two  weeks 
prior to the authorisation, so as to have their prior opinion on the draft authorisation. 
It  may  authorise  the  release  of  certain  frozen  funds  or  economic  resources  or  the 
making available of certain funds or economic resources, under such conditions as it 
deems appropriate, once these consultations have been completed. 

The competent authority shall inform the competent authorities of the other Member 
States and the Commission of any authorisation granted under this article. 

Article 4 

Article  2(2)  shall  not  apply  to  the  addition  to  frozen  accounts  of  interest  or  other 
earnings  on  those  accounts;  provided  that  any  such  interest,  other  earnings  and 
payments continue to be subject to Article 2(1). 

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2. 

Article 2(2) shall not prevent financial or credit institutions in the EU from crediting 
the frozen accounts, if they receive funds transferred by third parties to the account 
of the listed person, entity or body, provided that any additions to such accounts will 
also  be  frozen.  The  financial  or  credit  institution  shall  inform  the  competent 
authorities about such transactions without delay. 

1. 

Without  prejudice  to  the  applicable  rules  concerning  reporting,  confidentiality  and 
professional secrecy, natural and legal persons, entities and bodies shall: 

Article 5 

(a) 

supply  immediately  any  information  which  would  facilitate  compliance  with 
this  Regulation,  such  as  accounts  and  amounts  frozen  in  accordance  with 
Article 2, to the competent authorities of the Member States listed in Annex II 
where they are resident or located, and shall transmit such information, directly 
or through these competent authorities, to the Commission; 

(b) 

cooperate with the competent authorities listed in Annex II in any verification 
of this information. 

Any  additional  information  directly  received  by  the  Commission  shall  be  made 
available to the competent authorities of the Member State concerned. 

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

Article 6 

The  freezing  of  funds  and  economic  resources  or  the  refusal  to  make  funds  or 
economic resources available, carried out in good faith on the basis that such action 
is in accordance with this Regulation, shall not give rise to liability of any kind on 
the  part  of  the  natural  or  legal  person  or  entity  implementing  it,  or  its  directors  or 
employees, unless it is proved that the funds and economic resources were frozen as 
a result of negligence. 

Without prejudice to the international agreements concluded by the Community, this 
Regulation shall derogate from any rights conferred and any obligations imposed by 
any contract or agreement signed or entered into before or after the entry into force 
of  this  Regulation  and  from  any  licence  or permit  granted  before  or  after  the  entry 
into  force  of  this  Regulation,  with  the  exception  of  authorisations  granted  in 
accordance with this Regulation. 

2. 

3. 

1. 

2. 

Article 7 

The  Commission  and  Member  States  shall  immediately  inform  each  other  of  the  measures 
taken under this Regulation and shall supply each other with any other relevant information at 
their  disposal  in  connection  with  this  Regulation,  in  particular  information  in  respect  of 
violation and enforcement problems and judgments handed down by national courts. 

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The Commission shall be empowered to: 

Article 8 

(a)  amend  Annex  I  on  the  basis  of  decisions  taken  in  respect  of  the  Annexes  to  Common 
Position 2006/…/CFSP; and 

(b) amend Annex II on the basis of information supplied by Member States. 

Article 9 

1. 

2. 

The Member States shall lay down the rules on penalties applicable to infringements 
of the provisions of this Regulation and shall take all measures necessary to ensure 
that  they  are  implemented.  The  penalties  provided  for  must  be  effective, 
proportionate and dissuasive. 

The  Member  States  shall  notify  these  rules  to  the  Commission  without  delay  after 
entry into force of the Regulation and shall notify it of any subsequent amendment. 

This Regulation shall apply: 

Article 10 

- 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  inside  or  outside  the  territory  of  the  Community  who  is  a  national  of  a 
Member State; 

- to any legal person, entity or body which is incorporated or constituted under the law of a 
Member State; 

- to any legal person, entity or body in respect of any business done in whole or in part within 
the Community. 

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

Article 11 

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

Done at Brussels,  

For the Council 
The President 

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ANNEX I 

ANNEX II 

List of persons referred to in Article 2 

List of competent authorities 

(to be completed by Member States) 

BELGIUM 

CZECH REPUBLIC 

DENMARK 

GERMANY 

ESTONIA 

GREECE 

SPAIN 

FRANCE 

IRELAND 

ITALY 

CYPRUS 

LATVIA 

LITHUANIA 

LUXEMBOURG 

HUNGARY 

MALTA 

NETHERLANDS 

AUSTRIA 

POLAND 

PORTUGAL 

SLOVENIA 

SLOVAKIA 

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FINLAND 

SWEDEN 

UNITED KINGDOM 

Address for notifications to the European Commission: 

European Commission 

DG External Relations 

Directorate A. Crisis Platform and Policy Coordination in CFSP 

Unit A2. Crisis Management and Conflict Prevention 

CHAR 12/106 

B-1049 Bruxelles/Brussel (Belgium) 

e-mail: relex-sanctions@cec.eu.int 

Tel. (32 2) 295 55 85/ 299 11 76 

Fax: (32 2) 299 08 73 

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