Document ID: chunk:federal_register_of_legislation:F2024C01132:reg:5b:p1
Version: federal_register_of_legislation:F2024C01132
Segment Type: reg
Provision Reference: reg 5B (pt 1/2)
Character Range: 37090–39997

5B  Sanctioned commercial activity—Russia
 (1) For these Regulations, sanctioned commercial activity also means the direct or indirect purchase or sale of, or any other dealing with, bonds, equity, transferable securities, money market instruments or other similar financial instruments, if the financial instrument:
 (a) is issued, after the commencement of this subregulation, by an entity specified in subregulation (6); and
 (b) has a maturity period specified by the Minister in an instrument under this regulation for the financial instrument and the entity.
 (2) Subregulation (1) does not apply to an activity in relation to tradeable securities or other financial instruments that:
 (a) is a derivative product the value of which is linked to an underlying asset of a type mentioned in subsection (1); and
 (b) does not involve the purchase or sale of, or any other dealing in relation to, the underlying asset.
 (3) For these Regulations, sanctioned commercial activity also means directly or indirectly making, or being part of any arrangement to make, loans or credit if the loan or credit:
 (a) is made, after the commencement of this subregulation, to an entity specified in subregulation (6); and
 (b) has a maturity period specified by the Minister in an instrument under this regulation for the financial instrument and the entity.
 (4) Subregulation (3) does not apply to loans or credit that have a specific and documented objective to provide:
 (a) financing for non‑prohibited imports or exports of goods and non‑financial services between Australia and Russia; or
 (b) emergency funding to meet the solvency and liquidity criteria for legal persons:
 (i) established in Australia; and
 (ii) whose proprietary rights are owned for more than 50% by an entity specified by the Minister in an instrument under this regulation.
 (5) Subregulation (3) does not apply to drawdown or disbursements made under a contract concluded before the commencement of this subregulation if:
 (a) all the terms and conditions of such drawdown or disbursements:
 (i) were agreed before the commencement of this subregulation; and
 (ii) have not been modified on or after the commencement of this subregulation; and
 (b) before the commencement of this subregulation, 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.
 (6) For paragraphs (1)(a) and (3)(a), the entities are the following:
 (a) a major financial institution, or other major institution that:
 (i) is incorporated, or was established, in Russia and has an explicit mandate to promote competitiveness in the Russian economy, its diversification and the encouragement of investment; and
 (ii) at the commencement of this subregulation, was over 50% publicly owned or controlled; and
 (iii) is specified by