The UK Parliament adopted The Russia (Sanctions) (EU Exit) (Amendment) (No.3) Regulations 2024, which came into force today, 31 July. It revoked and replaced the Russia (Sanctions) (EU Exit) (Amendment) (No 2) Regulations 2024 to provide additional time for the required Parliamentary scrutiny within 28 days given for it.
The new amendments expand designation criteria set in Regulation 6 of The Russia (Sanctions) (EU Exit) Regulations 2019 (“Russia Regulations 2019”). A person can now be designated for being involved in destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine if:
- they own or control directly or indirectly, or are working as an executive or non-executive director, trustee or other manager or equivalent of, a person, other than an individual, which falls within sub-paragraphs (a) to (g) of the Regulation 6(3) of the Russia Regulations 2019;
- the person holds the right, directly or indirectly, to nominate at least one director (whether executive or non-executive), trustee or equivalent of a person, other than an individual, which falls within sub-paragraphs (a) to (g) of the Regulation 6(3) of the Russia Regulations 2019.
Criteria of being involved in obtaining a benefit from or supporting the Government of Russia has also been expanded and now includes provision of financial services or making available funds, economic resources, goods or technology, to a person who falls within sub-paragraphs (a) to (e) of the Regulation 6(4) of the Russia Regulations 2019.
The Russia (Sanctions) (EU Exit) (Amendment) (No.3) Regulations 2024 also amended ships specification criteria. “Ships specified under the Russia Regulations 2019 are prohibited from entering a port in the UK, may be given a movement or a port entry direction, can be detained, and will either be refused permission to register on the UK Ship Register or have their existing registration terminated”. The Oil Price Cap exception does not apply to specified ships, although licences may be granted to those ships (UK Government press release)
A ship could be specified if it is used for any activity the object or effect of which is:
(a) to destabilise Ukraine or undermine or threaten the territorial integrity, sovereignty or independence of Ukraine,
(b) to obtain a benefit from or support the Government of Russia, or
(c)to contravene or circumvent, or to enable or facilitate the contravention or circumvention of The Russia Regulations 2019.
How Gherson can help
Gherson lawyers can help you to navigate the complexity of sanctions legislation and ensure your full compliance with it. We can assist in developing your company compliance policies, including sanction policies and deliver training to your employees, both in the UK or overseas.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
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