Joint Proposal for a COUNCIL REGULATION amending Regulation (EU) No 442/2011 concerning restrictive measures in view of the situation in Syria
Date: 2011-11-09
Institutions: European Commission, High Representative of the Union
Subjects: European Investment Bank, Syria, economic sanctions, international sanctions, trade restriction

EUROPEAN COMMISSION 

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

Brussels, 9.11.2011 
COM(2011) 761 final 

2011/0346 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

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

 
 
  
 
(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

EXPLANATORY MEMORANDUM 

On 9 May 2011, the Council adopted Decision 2011/273/CFSP concerning restrictive 
measures  against  Syria,  as  well  as  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.  On  23 
September 2011, the Council amended Regulation (EU) No 442/2011 to extend further 
the  measures  against  Syria,  including  a  prohibition  on  investment  in  the  crude  oil 
sector,  the  addition  of  further  listings,  and  a  prohibition  of  the  delivery  of  Syrian 
banknotes and coins to the Central Bank of Syria. On 13  October 2011, the Council 
amended  Regulation  (EU)  No  442/2011,  listing  an  additional  entity  and  making  a 
derogation  permitting,  for  a  limited  period,  the  use  of  frozen  funds  subsequently 
received by this entity in connection with the financing of trade with non-designated 
persons and entities.  

The  Council  has  now  reached  political  agreement  on  the  adoption  of  an  additional 
measure, namely to prohibit the European Investment Bank to make any disbursement 
or  payment  under  or  in  connection  with  existing  loan  agreements  with  Syria  and  to 
suspend  all  existing  Technical  Assistance  Service  Contracts  for  sovereign  projects 
located in Syria. The loan agreements and service contracts concerned are private law 
contracts. 

Furthermore, the Council has decided to update the information relating to one person 
on the list in the Annex to Decision 2011/273/CFSP.  

To that end, the Council will adopt a Decision based on Chapter 2 of Title V of the 
Treaty  on  European  Union.  As  a  consequence,  the  High  Representative  for  Foreign 
Affairs  and  Security  Policy  and  the  European  Commission  propose  to  amend 
Regulation (EU) No 442/2011 accordingly.  

The  loans  granted  by  the  European  Investment  Bank  to  Syria  are  covered  by  a 
comprehensive EU budget guarantee based on successive decisions of the Council and 
of  the  European  Parliament.  The  current  signed  exposure  amounts  to  EUR  1372 
million of which EUR 560 million is outstanding. 

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2011/0346 (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) 

On  9  May  2011,  the  Council  adopted  Regulation  (EU)  No  442/20112  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 agreed for the 
purpose  of  freezing  of  funds  and  economic  resources,  and  a  prohibition  on  the 
purchase, import or transportation of crude oil from Syria. On 23 September 2011, the 
Council  amended  Regulation  (EU)  No  442/2011  to  extend  further  the  measures 
against  Syria,  including  a  prohibition  on  investment  in  the  crude  oil  sector,  the 
addition of further listings, and a prohibition of the delivery of Syrian banknotes and 
coins to the Central Bank of Syria. On 13 October 2011, the Council again amended 
Regulation  (EU)  No  442/2011,  listing  an  additional  entity  and  making  a  derogation 
permitting, for a limited period, the use of frozen funds subsequently received by this 
entity  in  connection  with  the  financing  of  trade  with  non-designated  persons  and 
entities.  

(3) 

In  view  of  the  continued  brutal  repression  and  violation  of  human  rights  by  the 
Government  of  Syria,  Council  Decision  2011/[  ]/CFSP  amending  Decision 
2011/273/CFSP  concerning  restrictive  measures  against  Syria3  provides  for  an 
additional  measure,  namely  to  prohibit  the  European  Investment  Bank  to  make  any 
disbursement  or  payment  under  or  in  connection  with  existing  loan  agreements  with 

1 
2 
3 

OJ L 121, 10.5.2011, p. 11. 
OJ L 121, 10.5.2011, p. 1 
OJ L …, ......2011, p. …. 

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Syria and to suspend all existing Technical Assistance Service Contracts for sovereign 
projects located in Syria.  

(4) 

(5) 

Furthermore,  Council  Decision  2011/[  ]/CFSP  provides  for  the  update  of  the 
to  Decision 
information  relating 
2011/273/CFSP. 

to  one  person  on 

the  Annex 

list 

the 

in 

This measure falls within the scope of the Treaty on the Functioning of the European 
Union  and,  therefore,  notably  with  a  view  to  ensuring  its  uniform  application  by 
economic operators in all Member States, regulatory action at the level of the Union is 
necessary in order to implement it. 

(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 

The following Article 3d is inserted in Regulation (EU) No 442/2011: 

The European Investment Bank shall:  

“Article 3d 

(a) 

(b) 

be prohibited from making any disbursement or payment under or in connection with 
any  existing  loan  agreement  entered  into  between  the  State  of  Syria  or  any  public 
authority thereof and the European Investment Bank;  

suspend  all  existing  Technical  Assistance  Service  Contracts  relating  to  projects 
financed under the loan agreements referred to in paragraph (a) above, and which are 
intended for the direct or indirect benefit of the State of Syria or any public authority 
thereof to be performed in Syria.” 

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

ANNEX 

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