Joint Proposal for a COUNCIL REGULATION amending Regulation (EU) No 442/2011 concerning restrictive measures in view of the situation in Syria
Date: 2011-09-20
Institutions: European Commission, High Representative of the Union
Subjects: Syria, economic sanctions, import restriction, international sanctions, petroleum

EUROPEAN COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR 
FOREIGN AFFAIRS AND 
SECURITY POLICY

Brussels, 20.9.2011 
COM(2011) 590 final 

2011/0251 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 442/2011 concerning restrictive measures in view of the 
situation in Syria 

 
 
  
 
EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

(4) 

(5) 

On  9  May  2011,  the  Council  adopted  Regulation  (EU)  No  442/2011  concerning 
restrictive measures in view of the situation in Syria.  

On 2 September 2011, the Council amended Regulation (EU) No 442/2011 to extend 
the  measures  against  Syria,  including  an  expansion  of  the  listing  criteria,  and  a 
prohibition on the purchase, import or transportation of crude oil from Syria. 

The  Council  further  reached  political  agreement  on  the  adoption  of  additional 
measures,  namely  a  prohibition  on  invesment  in  the  crude  oil  sector,  and  additional 
listings.  

The Council  also decided  to  prohibit the  delivery of Syrian banknotes to the Central 
Bank of Syria, and adjust the provisions protecting economic operators against claims 
related to the implementation of sanctions. Additionally the Council decided to freeze 
certain  Syrian  financial  assets,  while  ensuring  that  this  does  not  prevent  legitimate 
transactions with Syria. 

These measures fall within the scope of the Treaty on the Functioning of the European 
Union  and,  therefore,  notably  with  a  view  to  ensuring  their  uniform  application  by 
economic operators in all Member States, regulatory action at the level of the Union is 
necessary in order to implement them. 

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2011/0251 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 442/2011 concerning restrictive measures in view of the 
situation in Syria 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 215 thereof,  

Having  regard  to  Council  Decision  2011/273/CFSP  concerning  restrictive  measures  against 
Syria1,  

Having  regard  to  the  joint  proposal  from  the  High  Representative  of  the  Union  for  Foreign 
Affairs and Security Policy and the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

On  9  May  2011,  the  Council  adopted  Regulation  (EU)  No  442/20112  concerning 
restrictive measures in view of the situation in Syria.  

By  Regulation  (EU)  No  878/2011  of  2  September  20113,  the  Council  amended 
Regulation  (EU)  No  442/2011  to  extend  the  measures  against  Syria,  including  an 
expansion  of  the  listing  criteria,  and  a  prohibition  on  the  purchase,  import  or 
transportation from Syria of crude oil. 

By Council Decision 2011/…/CFSP of [ ] September 2011, the Council agreed on the 
adoption  of  further  measures,  namely  a  prohibition  on  investment  in  the  crude  oil 
sector,  the  addition  of  further  listings,  the  prohibition  of  the  delivery  of  Syrian 
banknotes and coins to the Central Bank of Syria, and the freezing of certain Syrian 
assets  outside  Syria,  as  well  as  some  adjustments  to  the  provisions  protecting 
economic operators against claims related to the implementation of sanctions. 

These measures fall within the scope of the Treaty on the Functioning of the European 
Union  and,  therefore,  notably  with  a  view  to  ensuring  their  uniform  application  by 
economic operators in all Member States, regulatory action at the level of the Union is 
necessary in order to implement them. 

(5) 

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 
3 

OJ L 121, 10.5.2011, p. 11. 
OJ L 121, 10.5.2011, p. 1 
OJ L 228, 3.9.2011, p. 1 

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HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EU) No 442/2011 is amended as follows: 

(1) 

In Article 1, the following point is inserted 

“(j) ‘Syrian person, entity or body’ means: 

(i) the State of Syria or any public authority thereof; 

(ii) any natural or legal person in, or resident in, Syria; 

(iii) any legal person, entity or body having its registered office in Syria; 

(iv)  any  legal  person,  entity  or  body,  inside  or  outside  Syria,  owned  or  controlled 
directly or indirectly by one or more of the above mentioned persons or bodies;” 

(2) 

The following Article 2a is inserted: 

“Article 2a 

It  shall  be  prohibited  to  sell,  supply,  transfer  or  export,  directly  or  indirectly,  new  Syrian 
denominated  banknotes  and  coinage,  printed  or  minted  in  the  EU,  to  the  Central  Bank  of 
Syria.” 

(3) 

The following Article 3c is inserted: 

1. 

The following shall be prohibited: 

“Article 3c 

(a) 

(b) 

(c) 

(d) 

the  granting  of  any  financial  loan  or  credit  to  any  natural  or  legal  Syrian 
person, entity or body referred to in paragraph (2); 

the  acquisition  or  extension  of  a  participation  in  any  Syrian  person,  entity  or 
body referred to in paragraph (2);  

the creation of any joint venture with any natural or legal Syrian person, entity 
or body referred to in paragraph (2);  

the participation, knowingly and intentionally, in activities the object or effect 
of which is to circumvent the prohibitions referred to in points (a), (b) and (c). 

The prohibitions in paragraph (1) shall apply to any natural or legal Syrian person, 
entity or body engaged in the exploration, production or refining of crude oil. 

For the purposes of paragraph 2 only, the following definitions shall apply: 

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2. 

3. 

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(a) 

‘exploration  of  crude  oil’  includes  the  exploration  for,  prospection  of  and 
management  of  crude  oil  reserves,  as  well  as  the  provision  of  geological 
services in relation to such reserves; 

(b) 

‘refining of crude oil’ means the processing, conditioning or preparation of oil 
for the ultimately final sale of fuels.” 

4. 

The prohibitions in paragraph 1: 

(a) 

(b) 

shall  be  without  prejudice  to  the  execution  of  an  obligation  arising  from 
contracts or agreements concluded before […/…/… ]; 

shall  not  prevent  the  extension  of  a  participation,  if  such  extension  is  an 
obligation under an agreement concluded before […/ … / …].” 

(4) 

The following Article 4a is inserted: 

"Article 4a 

All funds and economic resources belonging to, owned or controlled by persons, entities and 
bodies listed in Annex IIa and located outside Syria on [.../ … / 2011] shall be frozen.” 

(5) 

Article 10a is replaced by the following: 

"Article 10a 

No  claims,  including  for  compensation  or  indemnification  or  any  other  claim  of  this  kind, 
such as a claim of set-off, , fines or claims under a guarantee, claims for extension or payment 
of  a  bond,  financial  guarantee,  including  claims  arising  from  letters  of  credit  and  similar 
instruments  in  connection  with  any  contract  or  transaction  the  performance  of  which  was 
affected,  directly  or  indirectly,  in  whole  or  in  part,  by  the  measures  imposed  by  this 
Regulation, should be granted to the Government of Syria, its public bodies, corporations and 
agencies, or to any person or entity claiming through it or for its benefit." 

Annex  II  to  Regulation  (EU)  No  442/2011  is  amended  in  accordance  with  Annex  I  to  this 
Regulation 

Article 2 

Article 3 

Annex II is inserted as Annex IIa to Regulation (EU) No 442/2011. 

Annex IV to Regulation (EU) No 442/2011 is replaced by Annex III to this Regulation. 

Article 3 

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

Article 4 

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 

In Annex II to Regulation (EU) No 442/2011, the following entries are added: 

"[additional names to be proposed by Council]" 

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ANNEX II 

“ANNEX IIa 

List of natural and legal persons, entities or bodies referred to in Article 4a  

[names to be proposed by Council]" 

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ANNEX III 

“ANNEX IV 

List of Petroleum Products  

HS Code 

Description 

2709 00 

Petroleum oils and oils obtained from bituminous minerals, crude:  

2710  Petroleum  oils  and  oils  obtained  from  bituminous  minerals,  other  than  crude; 
preparations  not  elsewhere  specified  or  included,  containing  by  weight  70  %  or  more  of 
petroleum  oils  or  of  oils  obtained  from  bituminous  minerals,  these  oils  being  the  basic 
constituents of the preparations; waste oils:  

2712  Petroleum  jelly;  paraffin  wax,  microcrystalline petroleum  wax, slack wax, ozokerite, 
lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by 
other processes, whether or not coloured:  

2713  Petroleum  coke,  petroleum  bitumen  and  other  residues  of  petroleum  oils  or  of  oils 
obtained from bituminous minerals:  

2714  Bitumen  and  asphalt,  natural;  bituminous  or  oil-shale  and  tar  sands;  asphaltites  and 
asphaltic rocks:  

2715 00 00  Bituminous  mixtures  based  on  natural  asphalt,  on  natural  bitumen,  on 
petroleum bitumen, on mineral tar or on mineral tar pitch (for example, bituminous mastics, 
cut-backs)” 

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