Proposal for a Council Regulation amending Regulation (EC) No 1210/2003 concerning certain specific restrictions on economic and financial relations with Iraq
Date: 2008-02-08
Institutions: European Commission
Subjects: EU relations, Iraq, economic sanctions, petroleum, petroleum product, trading operation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 8.2.2008 
COM(2008) 74 final 

Proposal for a 

COUNCIL REGULATION 

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

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

Council  Regulation  (EC)  No  1210/2003  imposed  certain  restrictive  measures  in 
respect  of  Iraq,  in  accordance  with  Common  Position  2003/495/CFSP  and  UN 
Security  Council  Resolution  1483(2003).  Regulation  (EC)  No  1210/2003  made 
specific arrangements concerning payments for Iraqi exports of petroleum, petroleum 
products, and natural gas, and concerning immunity from legal proceedings of certain 
Iraqi assets, in its Articles 2 and 10, respectively. 

By  means  of  Resolution  1790  of  18  December  2007,  the  UN  Security  Council 
decided,  inter  alia,  that  these  specific  arrangements  should  apply  until  31  December 
2008 and stated its intention to review the specific arrangement concerning immunity 
from  legal  proceedings  no  later  than  15  June  2008.  It  is  appropriate  to  amend 
Regulation (EC) No 1210/2003 accordingly. 

It is also appropriate to align Regulation (EC) No 1210/2003 with recent developments 
in sanctions practice regarding the identification of competent authorities, liability for 
infringements and jurisdiction. 

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Proposal for a 

COUNCIL REGULATION 

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

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 
2003/495/CFSP on Iraq1, 

to  Common  Position  2008/…/CFSP  amending  Common  Position 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

In  line  with  Resolution  1483(2003)  of  the  UN  Security  Council,  Article  2  of 
Regulation  (EC)  No  1210/2003  concerning  certain  specific  restrictions  on  economic 
and  financial  relations  with  Iraq  and  repealing  Regulation  (EC)  No  2465/962  made 
specific  arrangements  as  regards  payments  for  petroleum,  petroleum  products,  and 
natural  gas  exported  from  Iraq,  whereas  Article  10  of  that  Regulation  made  specific 
arrangements concerning immunity from legal proceedings of certain Iraqi assets. The 
specific  arrangement  on  immunities  applied  until  31  December  2007.  The  specific 
arrangement on payments continues to apply.  

Resolution  1790(2007)  of 
the  UN  Security  Council  and  Common  Position 
2008/…/CFSP  provide  that  both  specific  arrangements  should  be  applied  until  31 
December  2008.  It  is  appropriate  to  amend  Regulation  (EC)  No  1210/2003 
accordingly. 

It is also appropriate to align Regulation (EC) No 1210/2003 with recent developments 
in sanctions practice regarding the identification of competent authorities, liability for 
infringements and jurisdiction. For the purpose of this Regulation, the territory of the 
Community is deemed to encompass the territories of the Member States to which the 
Treaty is applicable, under the conditions laid down in that Treaty. 

(4) 

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

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2 

OJ L … , … 2008, p. .. . 
OJ  L  169,  8.7.2003,  p.  6.  Regulation  as  last  amended  by  Regulation  (EC)  No  1791/2006  (OJ  L  363, 
20.12.2006, p. 1). 

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HAS ADOPTED THIS REGULATION: 

Article 1 

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

(1) 

Article 2 shall be replaced by the following: 

“Article 2 

All  proceeds  from  all  export  sales  of  petroleum,  petroleum  products,  and  natural  gas  from 
Iraq, as listed in Annex I, as of 22 May 2003 shall be deposited into the Development Fund 
for  Iraq  under  the  conditions  set  out  in  UNSC  Resolution  1483  (2003)  and  in  particular 
paragraphs 20 and 21 thereof.” 

(2) 

The following Article 4a shall be inserted: 

“Article 4a 

The prohibition set out in Article 4(3) and 4(4) shall not give rise to liability of any kind on 
the part of the natural or legal persons or entities concerned, if they did not know, and had no 
reasonable cause to suspect, that their actions would infringe this prohibition.” 

(3) 

Article 6 shall be replaced by the following: 

“Article 6 

1. 

By  way  of  derogation  from  Article  4,  the  competent  authorities  indicated  in  the 
websites listed in Annex V, may authorise the release of frozen funds or economic 
resources, if all of the following conditions are met: 

(a) 

(b) 

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 
arbitral judgment rendered prior to that date; 

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  applicable  laws  and  regulations  governing  the  rights  of  persons 
having such claims; 

(c) 

satisfying the claim is not in breach of Regulation (EEC) 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) 

Article 7 shall be replaced by the following: 

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“Article 7 

1. 

2. 

The  participation,  knowingly  and  intentionally,  in  activities,  the  object  or  effect  of 
which is, directly or indirectly, to circumvent Article 4 or to promote the transactions 
referred to in Articles 2 and 3, shall be prohibited. 

Any  information  that  the  provisions  of  this  Regulation  are  being,  or  have  been, 
circumvented shall be notified to the competent authorities indicated in the websites 
listed  in  Annex  V,  and,  directly  or  through  these  competent  authorities,  to  the 
Commission.” 

(5) 

Article 8 shall be replaced by the following: 

“Article 8 

1. 

Without  prejudice  to  the  applicable  rules  concerning  reporting,  confidentiality  and 
professional secrecy and to the provisions of Article  284  of the Treaty, natural and 
legal persons, entities and bodies shall: 

(a) 

provide  immediately  any  information  which  would  facilitate  compliance  with 
this  Regulation,  such  as  accounts  and  amounts  frozen  in  accordance  with 
Article 4, to the competent authorities indicated in the websites listed in Annex 
V,  in  the  Member  State  where  they  are  resident  or  located,  and,  directly  or 
through these competent authorities, to the Commission; 

(b) 

cooperate  with  the  competent  authorities  indicated  in  the  websites  listed  in 
Annex V, 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.” 

(6) 

The following Article 15a shall be inserted: 

“Article 15a 

1. 

2. 

Member States shall designate the competent authorities referred to in Articles 6, 7 
and  8  of  this  Regulation  and  identify  them  in,  or  through,  the  websites  listed  in 
Annex V. 

Member States shall notify the Commission of their competent authorities before 15 
March 2008 and shall notify it of any subsequent changes.” 

(7) 

Article 16 shall be replaced by the following: 

“Article 16 

This Regulation shall apply: 

(a) 

(b) 

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within the territory of the Community, including its airspace; 

on board any aircraft or any vessel under the jurisdiction of a Member State; 

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(c) 

(d) 

(e) 

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; and 

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

(8) 

In Article 18, paragraph 3, shall be replaced by the following: 

“3. 

(9) 

Articles 2 and 10 shall apply until 31 December 2008.” 

Annex V shall be replaced by the text given in the Annex to this Regulation. 

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

Article 2 

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 

“ANNEX V 

Websites for information on the competent authorities referred to in Articles 6, 7 and 8 
and address for notifications to the European Commission 

A. 

Websites for information on competent authorities 

(to be completed by Member States) 

BELGIUM 

BULGARIA 

CZECH REPUBLIC 

DENMARK 

GERMANY 

ESTONIA 

IRELAND 

GREECE 

SPAIN 

FRANCE 

ITALY 

CYPRUS 

LATVIA 

LITHUANIA 

LUXEMBOURG 

HUNGARY 

MALTA 

NETHERLANDS 

AUSTRIA 

POLAND 

PORTUGAL 

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ROMANIA 

SLOVENIA 

SLOVAKIA 

FINLAND 

SWEDEN 

UNITED KINGDOM 

B. 

Address for notifications to the European Commission: 

Commission of the European Communities 

Directorate-General for External Relations 

Directorate  A.  Crisis  Platform  and  Policy  Coordination  in  Common  Foreign  and  Security 
Policy 

Unit A.2. Crisis Management and Peace Building 

CHAR 12/106 

B-1049 Brussels 

Tel. (32-2) 295 5585 

Fax (32-2) 299 0873.” 

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