Joint Proposal for a COUNCIL REGULATION amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
Date: 2022-07-15
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, 15.7.2022  JOIN(2022) 37 final/2          Downgraded on 9.2.2023 2022/0224 (NLE)  Joint Proposal for a COUNCIL REGULATION amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine  
 
 
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EXPLANATORY MEMORANDUM 

Council Regulation (EU) No 269/2014 concerning restrictive measures in respect of 
actions  undermining  or  threatening  the  territorial  integrity,  sovereignty  and 
independence of Ukraine gives effect to restrictive measures provided for in Decision 
2014/145/CFSP. 

On  XXX  2022,  the  Council  adopted  Decision  XXXX  amending  Decision 
2014/145/CFSP, whereby it introduced a further derogation from the asset freeze and 
the  prohibition  to  make  funds  and  economic  resources  available  to  designated 
persons and entities in order to urgently prevent or mitigate an event likely to have a 
serious  and  significant  impact  on  human  health  and  safety  or  the  environment.  In 
view  of  the  Union’s  determined  stance  to  avoid  and  combat  food  and  energy 
insecurity around the world, Decision (CFSP) 2022/XXX also extends the exemption 
from  the  prohibition  from  the  asset  freeze  and  the  prohibition  to  make  funds  and 
economic resources available to specific designated entities for agricultural products. 

In order to ensure effective and uniform implementation of Council Regulation (EU) 
No 269/2014,  it is  appropriate to  oblige  designated persons and  entities  with  assets 
within  Union  jurisdiction  to  report  these  and  to  cooperate  with  the  competent 
authority  in  the  verification  of  this  reporting.  It  also  appropriate  to  strengthen  the 
provisions  on  reporting  obligations  for  EU  operators,  with  a  view  to  limiting  the 
breach and circumvention of the asset freezes. 

Further  action  by  the  Union  is  needed  in  order  to  give  effect  to  these  measures  in 
Union law. 

The  High  Representative  of  the  Union  for  Foreign  Affairs  and  Security  Policy  and 
the  European  Commission  propose  to  amend  Regulation  (EU)  No  269/2014 
accordingly. 

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2022/0224 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of 
actions undermining or threatening the territorial integrity, sovereignty and 
independence of 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 Council Decision 2014/145/CFSP of 17 March 2014 concerning restrictive 
measures in respect of actions undermining or threatening the territorial integrity, sovereignty 
and independence of Ukraine1, 

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) 

(3) 

(4) 

(5) 

Council  Regulation  (EU)  No  269/2014  concerning  restrictive  measures  in  respect  of 
actions  undermining  or 
integrity,  sovereignty  and 
the 
independence of Ukraine gives effect to restrictive measures provided for in Decision 
2014/145/CFSP. 

threatening 

territorial 

On  XX  YY  2022,  the  Council  adopted  Decision  XXXX  amending  Decision 
2014/145/CFSP, whereby it introduced a further derogation to the asset freeze and the 
prohibition to make funds and economic resources available to designated persons and 
entities in order to urgently prevent or mitigate an event likely to have a serious and 
significant impact on human health and safety or the environment.  

In view of the Union’s determined stance to avoid and combat food insecurity around 
the world, and in order to avoid disruptions in the payments channels for  agricultural 
products, Decision (CFSP) 2022/XXX also introduces a derogation from the the asset 
freeze  and  the  prohibition  to  make  funds  and  economic  resources  available  to 
designated banks. 

Decision  XXXX  also  permits  derogations  for  the  orderly  wind-down  of  operations, 
including correspondent banking, with one designated bank. 

In order to ensure effective and uniform implementation of Council Regulation (EU) 
No  269/2014,  it  is  appropriate  to  oblige  designated  persons  and  entities  with  assets 
within  Union  jurisdiction  to  report  these  assets  and  to  cooperate  with  the  competent 
authority  in  the  verification  of  this  reporting.  It  is  also  appropriate  to  strengthen  the 
provisions  on  reporting  obligations  for  EU  operators,  with  a  view  to  limiting  the 
breach and circumvention of the asset freezes. 

1 

OJ L 078, 17.3.2014, p. 16. 

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(6) 

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

(7) 

Council Regulation (EU) No 269/2014 should therefore be amended accordingly. 

HAS ADOPTED THIS REGULATION: 

Council Regulation (EU) No 269/2014 is amended as follows: 

(1) 

in Article 6b(3), point (a) is replaced by the following:  

Article 1 

‘(a) the funds or economic resources are necessary for the sale and transfer by  31 December 
2022  or  within  6  months  from  the  date  of  designation  in  Annex  I,  whichever  is  latest,  of 
proprietary  rights  in  a  legal  person,  entity  or  body  established  in  the  Union  where  those 
proprietary rights are directly or indirectly owned by a natural or legal person, entity or body 
listed in Annex I; and,’ 

(2) 

The following paragraph is inserted in Article 6b: 

‘2a. By way of derogation from Article 2, the competent authorities of a Member State may 
authorise  the  release  of  certain  frozen  funds  or  economic  resources  belonging  to  the  entity 
listed  under  entry  number  [OJ:  please  insert  the  number  of  the  newly  adopted  listing 
concerning  the  banking  entity]  in  Annex  I,  or  the  making  available  of  certain  funds  or 
economic  resources  to  that  entity,  under  such  conditions  as  the  competent  authorities  deem 
appropriate and after having determined that such funds or economic resources are necessary 
for the termination by [OJ: please insert the date 6 months after the entry into force of this 
Regulation],  of  operations,  contracts,  or  other  agreements,  including  correspondent  banking 
relations, concluded with that entity before [OJ: please insert the date of the entry into force 
of this  Regulation].’ 

(3) 

The following Article is inserted: 

‘Article 6d 

‘1. By  way  of derogation from  Article 2, the  competent  authorities of a  Member State may 
authorise,  under  such  conditions  as  they  deem  appropriate,  the  release  of  certain  frozen 
economic resources, after having determined that: 

(a) the release of such economic resources is necessary for the urgent prevention or mitigation 
of an event likely to have a serious and significant impact on human health and safety or the 
environment; and 

(b) the proceeds resulting from the release of such economic resources are frozen. 

2. The Member State concerned shall inform the other Member States and the Commission of 
any authorisation granted under paragraph 1 within two weeks of the authorisation.’ 

(4) 

The following Article is inserted: 

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‘Article 6e 

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1.  By  way  of  derogation  from  Article  2,  the  competent  authorities  of  a  Member  State  may 
authorise the release of certain frozen funds or economic resources belonging to the entities 
listed under entry numbers 53, 54, 55, 79, 80, 81, 82 and [OJ: please insert the number of the 
newly adopted listing concerning the banking entity] in Annex I, or the making available of 
certain funds or economic resources to those entities, under such conditions as the competent 
authorities  deem  appropriate  and  after  having  determined  that  such  funds  or  economic 
resources are necessary for the purchase, import or transport of agricultural and food products, 
including wheat and fertilisers. 

2. The Member State concerned shall inform the other Member States and the Commission of 
any authorisation granted under paragraph 1 within two weeks of the authorisation.’ 

(5) 

In Article 8, paragraph 1 is replaced by the following:  

‘1.      Notwithstanding  the  applicable  rules  concerning  reporting,  confidentiality  and 
professional secrecy, natural and legal persons, entities and bodies shall: 

(a)  supply  immediately  any  information  which  would  facilitate  compliance  with  this 
Regulation, such as information on accounts and amounts frozen in accordance with Article 2 
and  information  about  funds  and  economic  resources  within  EU  territory  belonging  to, 
owned, held or controlled by natural or legal persons, entities or bodies listed in Annex I and 
that have not yet been frozen by the natural and legal persons, entities and bodies obliged to 
do so, to the competent authority of the Member State where they are resident or located, and 
shall  transmit  such  information,  directly  or  through  the  Member  State,  to  the  Commission; 
and 

(b) cooperate with the competent authority in any verification of such information.’ 

(6) 

The following paragraphs are inserted in Article 8:  

‘1a. The competent authorities of the Member States, including enforcement authorities  and 
administrators of official registers where natural persons, legal persons, entities and bodies as 
well  as  immovable  or  movable  property  are  registered,  shall  process  and  exchange 
information  including  personal  data,  with  other  competent  authorities  of  the  Member  States 
and the European Commission. 

1b.  Any  processing  of  personal  data  shall  be  carried  out  in  accordance  with  the  present 
Regulation,  Regulation  (EU)  2016/679  and  Regulation  (EU)  2018/1725  only  in  so  far  as 
necessary  for  the  application  of  the  present  Regulation  and  to  ensure  effective  cooperation 
between Member States as well as with the European Commission in the application of this 
Regulation.’ 

(7) 

Article 9 is replaced by the following: 

‘1. It shall be prohibited to participate, knowingly and intentionally, in activities the object or 
effect of which is to circumvent the measures referred to in Article 2. 

2. Natural or legal persons, entities or bodies listed in Annex I, shall: 

(a) supply before [OJ: please insert date 6 weeks after entry into force of this Regulation] or 
within  6  weeks  after  their  listing,  whichever  comes  later,  any  information  about  funds  or 
economic resources within EU jurisdiction belonging to, owned, held or controlled by them, 
to the competent authority of the Member State where these funds or economic resources are 
located,  and  shall  transmit  such  information,  directly  or  through  the  Member  State,  to  the 
Commission; and 

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(b) cooperate with the competent authority in any verification of such information. 

3. Failure to comply with paragraph 2 shall be considered participation in activities the object 
or effect of which is to circumvent the measures referred to in Article 2. 

5. Any additional information received directly by the Commission shall be made available to 
the Member States. 

6. Any information provided or received in accordance with this Article shall be used only for 
the purposes for which it was provided or received.’ 

This  Regulation  shall  enter  into  force  on  the  day  following  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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