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: 2022-11-23
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU restrictive measure, Russia, Ukraine, crude oil, economic sanctions, international sanctions, maximum price, petroleum product, territorial dispute, territorial law, trade restriction

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   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 23.11.2022  JOIN(2022) 52 final/2                DOWNGRADED on 14.3.2023 2022/0395 (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  
 
 
EXPLANATORY MEMORANDUM 

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2022/0395 (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  November  2022  amending  Decision 
2014/512/CFSP2 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) 

(3) 

(4) 

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 Ukraine3. 

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

Decision  (CFSP)  2022/1909  of  6  October  2022  introduced  an  exemption  from  the 
prohibition  to  provide  maritime  transport  and  the  prohibition  to  provide  technical 
assistance,  brokering  services  or  financing  or  financial  assistance,  related  to  the 
maritime  transport  to  third  countries  of  crude  oil  or  petroleum  products  which 
originate in or are exported from Russia, purchased at or below a pre-established price 
cap  agreed  by  the  Price  Cap  Coalition.  That  exemption  should  mitigate  adverse 
consequences  on  energy  supply  to  third  countries  and  reduce  price  surges  driven  by 
extraordinary market conditions, while limiting Russian oil revenues. 

On  XXX  the  Council  adopted  Decision  (CFSP)  2022/XXX  amending  Decision 
2014/512/CFSP.  Decision  (CFSP)  2022/XXX  establishes  the  price  cap,  that  is  the 
price  per  barrel  at  or  below  which  crude  oil  from  Russia  is  exempt  from  the 
prohibition  to  provide  maritime  transport  and  the  prohibition  to  provide  technical 
assistance,  brokering  services  or  financing  or  financial  assistance,  related  to  the 
maritime transport to third countries.  

(5) 

Decision  (CFSP) 2022/XXX  clarifies  the  existing  prohibition  on  the  trading  and 
brokering  of  Russian  crude  oil  or  petroleum  products  and  extends  the  price  cap 
exception when such goods are traded at or below the price cap.  

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3 

OJ L […], […], p. […]. 
Council Decision 2014/512/CFSP of 31 July 2014 concerning restrictive measures in view of 
Russia’s actions destabilising the situation in Ukraine (OJ L 229, 31.7.2014, p. 13). 
Council  Regulation  (EU)  No  833/2014  of  31  July  2014  concerning  restrictive  measures  in 
view of Russia’s actions destabilising the situation in Ukraine (OJ L 229, 31.7.2014, p. 1). 

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(6) 

(7) 

(8) 

(9) 

Decision  (CFSP)  2022/XXX  also  extends  the  transition  period  applicable  to  the 
transport of crude oil and certain petroleum products after every subsequent change in 
the  price  cap  for  a  period  of  90  days  to  the  provision,  directly  or  indirectly,  of 
technical assistance, brokering services or financing or financial assistance, related to 
the  transport,  subject  to  the  same  conditions.  This  exception  is  necessary  to  ensure 
coherent implementation of the price cap by all operators. 

Decision  (CFSP)  2022/XXX  introduces  a  transitional  period  of  45  days  for  vessels 
carrying  crude  oil  originating  in  Russia,  which  was  purchased  and  loaded  onto  the 
vessel prior to 5 December 2022 and unloaded prior to 19 January 2023.  

Decision (CFSP) 2022/XXX clarifies that the prohibition to provide services related to 
the  transport  of  Russian  crude  oil  or  petroleum  products  by  a  third  country  flagged 
vessel applies in relation to vessels which in the past transported such goods purchased 
above the price cap, provided the operator responsible for that transport knew or had 
reasonable cause to suspect that this was the case.  This is necessary in order to ensure 
legal certainty. 

Finally,  Decision  (CFSP)  2022/XXX  introduces  an  exemption  to  the  prohibition  to 
provide  maritime  transport  and  the  prohibition  to  provide  technical  assistance, 
brokering  services  or  financing  or  financial  assistance,  related  to  the  maritime 
transport to third countries, where 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, or as a response to natural disasters. 

(10)  These measures fall within the scope of the Treaty and, therefore, in particular with a 
view to ensuring their uniform application in all Member States, regulatory action at 
the level of the Union is necessary. 

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

HAS ADOPTED THIS REGULATION: 

Article 1 

Article 3n of Regulation (EU) No 833/2014 is amended as follows:  

(1) 

paragraph 1 is replaced by the following: 

‘1.  It  shall  be  prohibited  to  provide,  directly  or  indirectly,  technical  assistance, 
brokering  services  or  financing  or  financial  assistance,  related  to  the  trading, 
brokering or transport, including through ship-to-ship transfers, to third countries of 
crude oil or petroleum products as listed in Annex XXV which originate in Russia or 
which have been exported from Russia.’ 

(2) 

paragraph 4 is replaced by the following: 

‘4. It shall be prohibited to trade, broker or transport, including through ship-to-ship 
transfers,  to  third  countries,  crude  oil  falling  under  CN  code  2709  00,  as  of  5 
December 2022, or petroleum products falling under CN code 2710, as of 5 February 
2023,  as  listed  in  Annex  XXV,  which  originate  in  Russia  or  which  have  been 
exported from Russia.’ 

(3) 

paragraph 5 is replaced by the following:  

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‘5. The prohibition in paragraph 4 shall apply as from the date of entry into force of 
the  first  Council  Decision  amending  Annex  XI  to  Decision  2014/512/CFSP  in 
accordance with Article 4p(9)(a) of that Decision. 

As from the date of entry into force of every subsequent Council Decision amending 
Annex XI to Decision 2014/512/CFSP, the prohibitions in paragraphs 1 and 4 shall 
not apply, for a period of 90 days, to the transport of products listed in Annex XXV 
to  this  Regulation  which  originate  in  Russia  or  which  have  been  exported  from 
Russia, and to the provision, directly or indirectly, of technical assistance, brokering 
services or financing or financial assistance, related to the transport, provided that 

(a)  the  transport  or  the  provision  of  technical  assistance,  brokering  services  or 
financing  or  financial  assistance,  related  to  the  transport  is  based  on  a  contract 
concluded before the date of entry into force of every subsequent Council Decision 
amending Annex XI to Decision 2014/512/CFSP; and 

(b) the purchase price per barrel did not exceed the price laid down in Annex XXVIII 
to this Regulation on the date of conclusion of that contract.’ 

(4) 

paragraph 6 is amended as follows: 

‘The prohibitions in paragraphs 1 and 4 shall not apply: 

(a) as of 5 December 2022, to crude oil falling under CN code 2709 00, and as of 5 
February 2023, to petroleum products falling under CN code 2710, which originate 
in Russia or which have been exported from Russia the purchase price per barrel of 
which does not exceed the price laid down in Annex XXVIII; 

(b)  to  crude  oil  or  petroleum  products  as  listed  in  Annex  XXV  where  those  goods 
originate in a third country and are only being loaded in, departing from or transiting 
through Russia, provided that both the origin and the owner of those goods are non-
Russian; 

(c)  to  the  transport,  or  to  technical  assistance,  brokering  services,  financing  or 
financial  assistance  related  to  such  transport,  of  the  products  mentioned  in  Annex 
XXIX  to  the  third  countries  mentioned  therein,  for  the  duration  specified  in  that 
Annex. 

(d)  as  of  5  December  2022,  to  crude  oil  falling  under  CN  code  2709  00,  which 
originates  in  Russia  or  which  has  been  exported  from  Russia  purchased  above  the 
price laid down in Annex XXVIII which is loaded onto a vessel at the port of loading 
prior  to  5  December  2022  and  unloaded  at  the  final  port  of  destination  prior  to  19 
January 2023.’ 

(5) 

paragraph 7 is replaced by the following:  

‘7. In the event that, after the entry into force of a Council Decision amending Annex 
XI  to  Decision  2014/512/CFSP,  a  vessel  has  transported  Russian  crude  oil  or 
petroleum  products  referred  to  in  paragraph  4,  and  the  operator  responsible  for  the 
transport knew or had reasonable cause to  suspect  that such crude oil or  petroleum 
products were purchased above the price laid down in Annex XXVIII on the date of 
conclusion  of  the  contract  for  such  purchase,  it  shall  be  prohibited  to  provide  the 
services referred to in paragraph 1 relating to the transport of  crude oil or petroleum 
products that originate in Russia or are exported from Russia referred to in paragraph 
4 by that vessel for 90 days following the date of unloading of the cargo purchased 
above the price cap.’ 

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(6) 

the following paragraph is added:  

‘9. The prohibitions in paragraph 1 and 4 shall not apply to the transport or provision 
of technical assistance, brokering services or financing or financial assistance, related 
to the transport 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, 
or as a response to natural disasters, provided that the national  competent authority 
has been notified immediately once the event has been identified.’ 

(7) 

the following paragraph is added:  

‘10. Member States and the Commission shall inform each other of detected instances 
of breach, circumvention and attempts at breach or circumvention of the prohibitions 
set out in this Article.   

Any information provided or received in accordance with this Article shall be used for 
the  purposes  for  which  it  was  provided  or  received,  including  ensuring  the 
effectiveness of the measure.’  

Article 2 

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

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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