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R
USSIA
B
RIEFING
|
August 2014
In March 2014, the EU and the United States introduced sanctions
against certain Russian and Ukrainian persons as a reaction toward
Russia’s role in the Crimea crisis. European “Regulations concerning
restrictivemeasures in respect of actions undermining or threatening
the territorial integrity, sovereignty and independence of Ukraine”
included economic sanctions, asset freezes and travel bans and
have been implemented on March 5 (2014/119/CFSP), March 17
(2014/145/CFSP), May 12 (2014/265/CFSP) and July 12 (2014/455/
CFSP) as well as July 30 (2014/507/CFSP). As of July 31, there were
123 individuals and legal entities on the sanctions list.
The US sanctions lists contain 95 individuals and legal entities and
were first implemented on March 6 (Executive Order 13660), and
then on March 17 (Executive Order 13661), on March 20 (Executive
Order 13662) and several later amendments to Executive Orders.
By July 2014, the EU and the US lists together reached 167 positions,
including 110 individuals and 57 legal entities. As these sanctions are
not unique (for example, very similar sanctions have been introduced
earlier against individuals and legal entities in Belarus), it is important
to analyze the legal framework of the EU and US sanctions.
No economic contacts at all
With the sanctions, the EU and the US have tried to exclude both
individuals and enterprises from the economic activities of the EU
and the USA, respectively. Therefore, for example, the property of
sanctioned persons has been frozen and the sanctioned individuals
are also not allowed to enter the EU and the US.
On April 28, the US also imposed an export and re-export prohibition
on Russia for high-tech goods which could be used in the defense
industry. The U.S. Commerce Department´s Bureau of Industry and
Security has also revoked existing export licenses for such goods. On
July 30 and July 31, the EU introduced sectoral sanctions forbidding
investments in Crimea in the areas of electricity networks, oil
production, and transport infrastructure. Any technical assistance in
these areas, even verbal consultations, are forbidden. The EU has also
prohibited arms exports and exports of goods of dual use to Russia, as
well as it has banned Russian state-owned financial institutions from
the European capital markets.
Both the EU and US sanctions forbid any economic interactions with
listed persons and also with companies that are 50 percent or more
owned by a listed person. This means that it is forbidden to obtain
goods from a listed person or to sell goods to them. Obtaining or
rendering of services is also forbidden. Additionally, it is illegal to
manage the property of sanctioned persons in any form, as well as to
pay dividends to them.
Legal Framework: What do
sanctions really mean?
- By Helge Masannek