Joint Proposal for a COUNCIL REGULATION amending Regulation (EU) No 204/2011 concerning restrictive measures in view of the situation in Libya
Date: 2011-09-26
Institutions: European Commission, High Representative of the Union
Subjects: Libya, economic sanctions, freedom of the skies, international sanctions, liberalisation of trade

EUROPEAN COMMISSION 

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

Brussels, 26.9.2011 
COM(2011) 601 final 

2011/0259 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 204/2011 concerning restrictive measures in view of the 
situation in Libya 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

On  2  March  2011,  the  Council  adopted  Regulation  (EU)  No  204/2011  imposing 
restrictive  measures  in  view  of  the  situation  in  Libya  in  order  to  give  effect  to  UN 
Security Council Resolution 1970 (2011).  

On 15 September 2011, the UN Security Council adopted Resolution 2009 (2011) to 
promote  Libya’s  recovery  from  its  recent  conflict  and  begin  unwinding  some  of  the 
sanctions  imposed  under  UNSCR  1970  and  successive  resolutions.  UNSCR  2009 
creates new exemptions to the arms embargo, removes restrictions on Libyan-operated 
flights  and  provides  for  a  transparent  and  responsible  unfreezing  of  certain  funds 
frozen  under  UNSCR  1970  in  order  to  support  the  resumption  of  economic  activity. 
The Council is preparing a CFSP Decision to implement UNSCR 2009. 

Some of 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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2011/0259 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 204/2011 concerning restrictive measures in view of the 
situation in Libya 

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/  /CFSP  of  […]  amending  Council  Decision 
2011/137/CFSP concerning restrictive measures in view of the situation in Libya1, 

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) 

On  2  March  2011,  the  Council  adopted  Regulation  (EU)  No  204/2011  concerning 
restrictive measures in view of the situation in Libya2.  

Further  to  UN  Security  Council  Resolution  2009  (2011),  Decision  2011/[…]/CFSP 
provides  in  particular  for  new  exemptions  to  the  arms  embargo,  adjustments  to  the 
assets freeze of certain Libyan entities and the resumption of certain Libyan flights, in 
order to support Libya’s economic recovery.  

Some of those measures fall within the scope of the Treaty on the Functioning of the 
European  Union  and,  therefore,  in  particular  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. 

(4) 

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: 

Regulation (EU) No 204/2011 is amended as follows: 

Article 1 

1 
2 

OJ L […], […].2011, p. […]. 
OJ L 58, 3.03.2011, p. 1. 

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(1) 

In Article 3, the following paragraph is added: 

“6.  By  way  of  derogation  from  paragraph  1,  the  competent  authorities  of  the 
Member States, as indicated on the websites listed in Annex IV, may authorise 
the  provision  to  persons,  entities  or  bodies  in  Libya  of  technical  assistance, 
financing and financial assistance related to the goods and technology listed in 
the  Common  Military  List  or  related  to  equipment  which  might  be  used  for 
internal  repression,  for  security  or  disarmament  assistance  to  the  Libyan 
authorities, provided that the Member State concerned has notified its intention 
to  grant  an  authorisation  to  the  Sanctions  Committee  in  advance,  and  the 
Sanctions  Committee  has  not  objected  within  five  working  days  of  such 
notification.” 

(2) 

(3) 

Article 4a is deleted. 

In Article 5, the following paragraph is inserted: 

“4.  All funds and economic resources belonging to, owned, held or controlled on 

[.../ … / 2011] by: 

(a)  Central Bank of Libya; 

(b)  Libyan Arab Foreign Bank; 

(c)  Libyan Investment Authority; and 

(d)  Libyan Africa Investment Portfolio, 

and located outside Libya on [.../ … / 2011] shall remain frozen.  

(4) 

The following Article 8b is inserted: 

“Article 8b 

1. 

By  way  of  derogation  from  Article  5  (4),  the  competent  authorities  of  the  Member 
States, as indicated on the websites listed in Annex IV, may authorise the release of 
certain frozen funds or economic resources, provided that: 

(a) 

the funds or economic resources shall be used for one or more of the following 
purposes:  

(i) 

humanitarian needs;  

(ii) 

fuel, electricity and water for strictly civilian uses;  

(iii)  resuming Libyan production and sale of hydrocarbons;  

(iv)  establishing,  operating,  or  strengthening 

institutions  of  civilian 

government and civilian public infrastructure; or 

(v) 

facilitating  the  resumption  of  banking  sector  operations,  including  to 
support or facilitate international trade with Libya; 

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(b) 

(c) 

(d) 

(e) 

the Member State concerned has provided  notice  to  the  Sanctions Committee 
of  its  intention  to  authorize  access  to  funds  or  economic  resources,  and  the 
Sanctions  Committee  has  not  objected  within  five  working  days  of  such  a 
notification, 

the  Member  State  concerned  has  notified  the  Sanctions  Committee  that  those 
funds or economic resources shall not be made available to or for the benefit of 
any person, entity or body listed in Annexes II and III. 

the  Member  State  concerned  has  consulted  in  advance  with  the  Libyan 
authorities about the use of such funds or economic resources; and 

the  Member  State  concerned  has  shared  with  the  Libyan  authorities  the 
notification  submitted  pursuant  to  this  paragraph  and  the  Libyan  authorities 
have  not  objected  within  five  working  days  to  the  release  of  such  funds  or 
economic resources. 

2. 

By way of derogation from Article 5(4) and provided that a payment is due under a 
contract  or  agreement  that  was  concluded  by,  or  an  obligation  that  arose  for  the 
person,  entity  or  body  concerned,  before  the  date  on  which  that  person,  entity  or 
body had been designated by the UN Security Council or the Sanctions Committee, 
the competent authorities of the Member States, as indicated on the websites listed in 
Annex IV,  may  authorise,  under  such  conditions  as  they  deem  appropriate,  the 
release of certain frozen funds or economic resources, if the following conditions are 
met: 

(a) 

the  competent  authority  concerned  has  determined  that  the  payment  is  not  in 
breach  of  Article  5  (2)  nor  to  or  for  the  benefit  of  persons,  entities  or  bodies 
referred to in Article 5(4); 

(b) 

the Sanctions Committee has been notified by the relevant Member State of the 
intention to grant an authorisation ten working days in advance.” 

Annex II to Regulation (EU) No 204/2011 is hereby amended in accordance with the Annex 
to this Regulation. 

Article 2 

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

Article 3 

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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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The following legal persons, entities or bodies shall be removed from the list set out in Annex 
II to Regulation (EU) No 204/2011. 

ANNEX 

1. 

2. 

3. 

4. 

Central Bank of Libya  

Libyan Investment Authority 

Libyan Foreign Bank 

Libya Africa Investment Portfolio 

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