Joint Proposal for a COUNCIL REGULATION amending Council Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine
Date: 2022-02-22
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU restrictive measure, Russia, Ukraine, economic sanctions, international sanctions, territorial dispute, territorial law

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   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 22.2.2022  JOIN(2022) 18 final/2 -     DOWNGRADED ON 14.3.2023 2022/0056 (NLE)  Joint Proposal for a COUNCIL REGULATION amending Council Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine  
 
 
(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

EXPLANATORY MEMORANDUM 

Council Regulation (EU) No 833/2014 prohibits the sale, supply, transfer or export 
of dual-use goods and technology to any person, entity or body in Russia or for use 
in Russia, if those items are for military use or for military end-users. It also bans the 
sale of such goods and technology to specified legal persons in Russia and prohibits 
the provision  of technical  assistance and other related services as  well as financing 
and financial assistance related to such good and technology. In addition, it requires 
operators  to  obtain  a  prior  authorisation  for  the  sale,  supply,  transfer  or  export  of 
certain  technologies  for  the  oil  industry  in  Russia  and  prohibits  the  provision  of 
associated  services  necessary  for  deep-  water  oil  exploration  and  production,  arctic 
oil exploration and production or shale oil projects in Russia, including its Exclusive 
Economic  Zone  and  Continental  Shelf.  It  also  prohibits  the  provision  of  technical 
assistance related to the goods and technology listed in the Common Military List of 
the European Union or related to the provision, manufacture, maintenance and use of 
such  goods.  It  also  imposes  restrictions  on  access  to  the  capital  market  for  certain 
Russian financial institutions. 

Council Regulation (EU) No 833/2014 gives effect to certain measures provided for 
in Council Decision 2014/512/CFSP. 

Council Decision (CFSP) 2022/XXX amends Council Decision 2014/512/CFSP and 
introduces further targeted economic sanctions following the signing by the President 
of  the  Russian  Federation  of  a  decree  recognising  the  “independence  and 
sovereignty” of the non-government controlled areas of Donetsk and Luhansk oblasts 
of Ukraine and ordering the Russian armed forces into the area. 

Council  Decision  (CFSP)  2022/XXX  prohibits  the  financing  of  Russia,  its 
government and its Central Bank. 

These amendments fall within the scope of the Treaty and, therefore, notably with a 
view  to  ensuring  its  uniform  application  in  all  Member  States,  regulatory  action  at 
the level of the Union is necessary.  

The  High  Representative  for  Foreign  Affairs  and  Security  Policy  and  the 
Commission  should  therefore  propose  to  amend  Regulation  (EU)  No  833/2014 
accordingly.  

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2022/0056 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EU) No 833/2014 concerning restrictive measures in view 
of Russia’s actions destabilising the situation in Ukraine 

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  Decision  (CFSP)2022/xxx1  of  XX  February  2022  amending  Decision 
2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilising the 
situation in Ukraine, 

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

Whereas: 

(1) 

(2) 

On  31  July  2014,  the  Council  adopted  Regulation  (EU)  No  833/2014  concerning 
restrictive measures in view of Russia's actions destabilising the situation in Ukraine.  

Regulation (EU) No 833/2014 gives effect to certain measures provided for in Council 
Decision 2014/512/CFSP and prohibits the sale, supply, transfer or export of dual-use 
goods and technology to any person, entity or body in Russia or for use in Russia, if 
those items are for military use or for military end-users. It also bans the sale of such 
goods and technology to specified legal persons in Russia and prohibits the provision 
of  technical  assistance  and  other  related  services  as  well  as  financing  and  financial 
assistance  related  to  such  good  and  technology.  In  addition,  it  requires  operators  to 
obtain  a  prior  authorisation  for  the  sale,  supply,  transfer  or  export  of  certain 
technologies  for  the  oil  industry  in  Russia  and  prohibits  the  provision  of  associated 
services necessary for deep-water oil exploration and production, arctic oil exploration 
and production or shale oil projects in Russia, including its Exclusive Economic Zone 
and Continental Shelf. It also prohibits the provision of technical assistance related to 
the goods and technology listed in the Common Military List of the European Union 
or  related  to  the  provision,  manufacture,  maintenance  and  use  of  such  goods.  It  also 
imposes  restrictions  on  access  to  the  capital  market  for  certain  Russian  financial 
institutions. 

(3) 

On  21  February  2022,  the  President  of  the  Russian  Federation  signed  a  decree 
recognising  the  “independence  and  sovereignty”  of  the  non-government  controlled 
areas  of  Donetsk  and  Lugansk  oblasts  of  Ukraine  and  ordered  the  Russian  armed 
forces into the area. 

(4) 

In  view  of  the  gravity  of  the  situation,  on  [DATE]  the  Council  adopted  Decision 
2022/XXX/CFSP  of  XX  February  2022  amending  Decision  2014/512/CFSP  and 

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imposing  further  restrictive  measures  prohibiting  the  financing  of  Russia,  its 
government and its Central Bank. 

(5) 

Regulation (EU) No 833/2014 should therefore be amended accordingly. 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EU) 833/2014 is amended as follows:  

(1) 

In Article 1, point (f)(iii) is replaced by the following: 

‘(iii)  any  other  securities  giving  the  right  to  acquire  or  sell  any  such 
transferable  securities  or  giving  rise  to  a  cash  settlement  determined  by 
reference to transferable securities;’ 

(2) 

The following Article is inserted: 

1. 

2. 

3. 

‘Article 5a 

It  shall  be  prohibited  to  directly  or  indirectly,  purchase,  sell,  provide  investment 
services  for  or  assistance  in  the  issuance  of,  or  otherwise  deal  with  transferable 
securities and money-market instruments issued after [14 days after date of entry into 
force] by: 

(a)  Russia and its government; or 

(b)  Central Bank of Russia; or 

(c) 

a legal person, entity or body acting on behalf or at the direction of an entity 
referred to in point (b) of this paragraph. 

It shall be prohibited to directly or indirectly make or be part of any arrangement to 
make  any  new  loans  or  credit  to  any  legal  person,  entity  or  body  referred  to  in 
paragraph 1 after [date of entry into force]. 

The prohibition shall not apply to loans or credit that have a specific and documented 
objective  to  provide  financing  for  non-prohibited  imports  or  exports  of  goods  and 
non-financial  services  between  the  Union  and  any  third  State,  including  the 
expenditure  for  goods  and  services  from  another  third  State  that  is  necessary  for 
executing the export or import contracts. 

The prohibition in paragraph 2 shall not apply to drawdown or disbursements made 
under  a  contract  concluded  before  [entry  into  force]  provided  that  the  following 
conditions are met: 

(a) 

all the terms and conditions of such drawdown or disbursements: 

(i) 

(ii) 

were agreed before [date of entry into force]; and 

have not been modified on or after that date; and 

(b)  before [date of entry into force] a contractual maturity date has been fixed for 
the repayment in full of all funds made available and for the cancellation of all 
the commitments, rights and obligations under the contract. 

The  terms  and  conditions  of  drawdowns  and  disbursements  referred  to  in  point  (a) 
include provisions concerning the length of the repayment period for each drawdown 

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or disbursement, the interest  rate  applied or the interest  rate calculation method, and 
the maximum amount.’ 

(3) 

In paragraph 1 of Article 11, point (a) is replaced by the following: 

‘(a) legal persons, entities or bodies referred to in points (b) and (c) of Article 5(1) 
and points (c) and (d) of Article 5(2) and points (a), (b) and (c) of Article 5a, or listed 
in Annexes III, IV, V and VI;’ 

(4) 

Article 12 is replaced by the following:  

‘It  shall  be  prohibited  to  participate,  knowingly  and  intentionally,  in  activities  the 
object or effect of which is to circumvent prohibitions  in this Regulation, including 
by acting as a substitute for legal persons, entities or bodies referred to in Articles 5 
or 5a, or by acting to their benefit by using the exceptions in Articles 5(3) or 5a(2).’ 

This  Regulation  shall  enter  into  force  on  the  day  following  that  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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