Source: EURLEX
Language: en
Format: md

###### **COMMISSION OF THE EUROPEAN COMMUNITIES** Brussels, 24.06.1998 COM(1998) 393 final Proposal for a COUNCIL REGULATION (EC) concerning the prohibition of new investments in the Republic of Serbia (presented by the Commission)

**EXPLANATORY MEMORANDUM**

**The present proposal of the Commission for a prohibition of** **new** **investment**
**in the Republic of** **Serbia** **follows from the adoption by the Council of Common**
**Position** **98/374/CFSPdealing** **with the Kosovo situation, and** **the** **actions to** **be** **taken in**
**this respect in order to obtain the fulfilment by the Governments of** **the** **Federal**
**Republic of Yugoslavia and of** **Serbia** **of solving the Kosovo problem.**

**Article** **1** **of** **the** **proposal provides a clear delimitation of the prohibition of**
**new investment.**

**Article 2 prohibits the circumvention of the prohibition-**

**Articles 3 and 4 deal with a procedure for exceptions which can not yet be**

**foreseen and for consultation on the application of the Regulation.**

**Articles 5-8 contain usual provisions regarding mutual information, sanctions**
**to be imposed, and other measures** **ensuring full** **compliance with the Regulation.**

**Article 9 specifies the persons addressed by and the territorial scope of** **the**
**Regulation.**

**Council Regulation (EC) No** **...** **./98**
###### **of.... 1998**

**concerning the prohibition of new investments in the Republic of Serbia**

**THE COUNCIL OF THE EUROPEAN UNION,**

**Having regard to the Treaty establishing the European Community, and in particular**
**Articles 73g and 228a,**

**Having regard to Common Position 98/** **374/CFSP** **defined by the Council on the basis**
**of Article J.2 of the Treaty on European Union on restrictive measures against the**
**Federal Republic of Yugoslavia and the Republic of** **Serbia** **[1]** **,**

###### **Having regard to the proposal from the Commission,**

**Whereas the said Common Position provides for a prohibition of new investments in**
**the Republic of** **Serbia;**

**Whereas this measure falls under the scope of the Treaty establishing the European**
**Community;**

**Whereas, therefore, and notably with a view to avoiding distortion of competition,**
**Community legislation is necessary for the implementation of these measures, as far**
**as the territory of the Community is concerned; whereas such territory is deemed to**
**encompass, for the purposes of this Regulation, the territories of** **the** **Member States to**
**which the Treaty establishing the European Community is applicable, under the**
**conditions laid down in that Treaty;**

**Whereas procedures should be provided to authorise certain activities, otherwise**
**prohibited ;**

**Whereas competent authorities of the Member States should, where necessary, be**
**empowered to ensure compliance with this Regulation;**

**Whereas there is a need for Commission and Member States to inform each other of**
**the measures taken under this Regulation and of other relevant information at their**
**disposal in** **connection** **with this Regulation;**

**OJL** **165/98, 10.6.1998, p. 1**

_**'Jb**_

**HAS ADOPTED THIS REGULATION :**

**Article 1**

**Without prejudice to the execution of** **contracts** **concluded before the entry into force**
**of this** **Regulation,** **it shall be prohibited to obtain ownership or** **control,** **directly or**
**indirectly, of any kind of asset in the Republic of** **Serbia,** **including:**

**(i) an enterprise (being a legal person or any other entity constituted or organised**
**under the applicable law of the Republic of** **Serbia,** **whether or not for profit, and**
**whether private or government owned or controlled, including a corporation, trust,**
**partnership,** **branch,** **joint venture, association or organisation);**

**(ii) shares, stocks or forms of equity participation in an enterprise, and rights derived**
**therefrom;**

**(iii) bonds, debentures, loans and other forms of debt, and rights derived therefrom;**

**(iv) rights under contracts, including turnkey, construction, management, production**
**or revenue-sharing contracts;**

**(v) claims to money and claims to performance;**

**( vi) intellectual property rights;**

**(vii) rights conferred pursuant to law or contract such as concessions, licenses,**
**authorisations, and permits;**

**( viii) any other tangible and intangible, movable and immovable property, and any**
**related property rights, such as leases, mortgages, liens and pledges.**

**Article 2**

**The participation, knowingly and intentionally in related activities, the object or effect**
**of which is, directly or indirectly, to circumvent the provisions of Article 1 shall be**
**prohibited.**

**Article 3**

**In accordance with the provisions of** **Article** **4 the Commission shall be** **empowered**
**to.** **grant, on a case-by-case basis, authorisations for new investments in the Republic**
**of** **Serbia,** **in particular for humanitarian reasons or for the protection of the interests**
**of** **the Community.**

**->**

Article 4

For the purposes of the implementation of Article 3, the Commission shall be assisted
by the committee composed of the representatives of the Member States and chaired
by the representative of the Commission, established under Council Regulation (EC)
No. 2271/96 [2], in accordance with the following provisions.

The representative of the Commission shall submit to the committee a draft of the
measures to be taken. The committee shall deliver its opinion on the draft within a
time limit which the chairman may lay down according to the urgency of the matter.
The opinion shall be delivered by the majority laid down in Article 148 (2) of the
Treaty in the case of decisions which the Council is required to adopt on a proposal
from the Commission. The votes of the representatives of the Member States within
the committee shall be weighted in the manner set out in that Article. The chairman
shall not vote.

The Commission shall adopt the measures envisaged if they are in accordance with
the opinion of the committee.

If the measures envisaged are not in accordance with the opinion of the committee, or
if no opinion is delivered, the Commission shall, without delay, submit to the Council
a proposal relating to the measures to be taken. The Council shall act by a qualified
majority.

###### If, on the expiry of a period of one month from the date of referral to the Council, the

Council has not acted, the proposed measures shall be adopted by the Commission.

Article 5

Each Member State shall determine the sanctions to be imposed where the provisions
of this Regulation are infringed. Such sanctions must be effective, proportionate and
dissuasive.

Article 6

Without prejudice to the EC rules of confidentiality, the competent authorities of the
Member States shall have the power to require banks, other financial institutions and
other bodies and persons to provide all relevant information necessary for ensuring
compliance with this Regulation.

; O I L 309, 29.11.1996. p. I

#### **_H_**

**Article 7**

**The Commission and the Member States shall inform each other of the measures**

**taken under this Regulation and supply each other with other relevant information at**
**their disposal in connection with this Regulation, such as breaches and enforcement**
**problems, judgments handed down by national courts or decisions of relevant**
**international fora.**

**Article** **X**

**The** **committee referred to in Article 4 of** **this** **Regulation may examine any question**
**concerning the application of this Regulation, which may be raised either by the**
**chairman or by a representative of a Member State.**

**Article 9**

**This Regulation shall apply :**

**-** **within the territory of the Community including its airspace,**

**-** **on board any aircraft or any vessel under** **the** **jurisdiction of a Member State,**

**-** **to any person elsewhere who is a national of a Member State,**

**-** **to any body which is incorporated or constituted under the law of** **a** **Member Slate.**

**Article 10**

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

**This Regulation shall be binding in its entirety and directly applicable in all Member**
**States.**

_**Iù>r**_ _**the ( 'ouncil**_

_**The**_ _**President**_

**Done at....**

##### **_h_**

##### **ISSN 0254-1475**

## COM(98) 393 final

# **DOCUMENTS**

### EN 11 02 06 10 Catalogue number : CB-CO-98-408-EN-C ISBN 92-78-37415-6

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