Ukraine/Russia

Information as of: 16th October 2019

Latest Updates
UN  
US On 1 Aug 2019 OFAC issued EO13883 amending EO12851 which relates to the CBW Act. WEF the 26 Aug 2019  the Russia Related Directive  was introduced to target the Russian financial institutions in response to Russia’s use of the nerve agent Novichok in Salisbury in the UK in March 2018. Additionally, on the 6 Sept 2019 sanctions against individuals and entities designated under Council Regulation (EU) 269/2014 and Council Decision 2014/145/CFSP were extended until 30 Jan 2020.
EU/UK Restrictive measures stated under CFSP 2014/386 were renewed for a further year (w.e.f. 20 June 2019) pursuant CFSP 2019/1018 as well as a 6 month extension to the sectoral sanction w.e.f. 31st July 2019
Financial/Other Sanctions
UN  
US EO 13660 (6 March 2014), updated by EO 13662 (20 March 2014). EO 13818. CBW Act 27 Aug 2018, Public Notice 10519 in Federal Register. CBW Act 27 Aug 2018, Public Notice 10519 in Federal Register. EO12851 , EO13883Russia Related Directive 
EU/UK EU 208/2014 (6 March 2014), implemented by EU 269/2014 (17 March 2014) amended by EU 783/2014 (19 July 2014) and EU 810/2014 (25 Jul 2014) and Council Decision (CFSP) 2017/1547.EU 2014/386/CFSP (23rd June 2014), amended by EU 825/2014 (31st July 2014), EU 1351/2014 (20 Dec 2014). EU 833/2014 (31st July 2014), EU 960/2014 (12th Sep 2014) both amended by EU 1290/2014 (5 Dec 2014). EU 2014/512 extended by CFSP 2018/2078. CFSP 2018/1237, CFSP 2019/415, CFSP 2019/1018
Arms Embargo
UN No
US Yes. Previously operated a policy of denial for licences for arms. 27 Aug 2018 under the CBW Act, termination of arms sales and arms sales financing came into effect: Public Notice 10519 in Federal Register.
EU/UK Council Reg 833/2014effective 31st July 2014 CFSP 2018/1237, CFSP 2019/415
Further Details
UN No
US EO 13660 blocking property of designated individuals/entities (including those entities that are owned or controlled by SDNs) by any 'US person' (effective 6 Mar 2014). Amended by EO 13661 (effective 17 Mar 2014) and EO 13662 (effective 20 Mar 2014) including further designations, including Bank Rossiya.  Sectorial Sanctions expanded to further Russian banks and defence companies on 29 Jul 2014. Sectorial Sanctions expanded further to include more entities and a prohibition from transacting in, providing financing for, or otherwise dealing in debt of longer than 30 days maturity or new equity, their property or their interests in their property, for various persons named on SSI list, the provision, exportation, or re-exportation of goods, services or technology in support of exploration or production for deep water, Arctic offshore, or shale projects that have the potential to produce oil in the Russian Federation, or in maritime area claimed by the Russian Federation and extending from its territory, effective 12 Sep 2014. Ukraine / Russia Directive 4 (Under EO 13662) amended 31 Oct 2017 to expand these sanctions to oil produced outside of Russia by persons/entities on the list that over controlling or ownership interest of a company in excess of 33%, effective 29 Jan 2018. Sectorial Sanctions Identifications List, effective from 16 Jul 2014, includes a prohibition from transacting in, providing financing for, or otherwise dealing in debt of longer than 90 days maturity or new equity for certain Russian financial institutions and energy firms, their property or their interests in their property. 29 Sep 2017 amended Directive to further restrict prohibition on transactions providing financing for, or otherwise dealing in debt of longer than 14 days maturity or new equity for certain Russian financial institutions, their property or their interests in their property and prohibits transacting in, providing financing for, or otherwise dealing in new debt of specified tenors for longer than 60 days maturity by, on behalf of, or for the benefit of the persons operating in Russia’s energy sector, their property, or their interests in property. These further restrictions apply to transactions that occur on or after 28 Nov 2017.  Ukraine Freedom Support Act 2014 signed into law on 18 Dec 2014 enables the imposition of additional measures from a number of options that can be imposed if warranted and includes sanctions against foreign financial institutions. Section 226 of CAATSA amends section 5 of the UFSA by making the sanctions in that section, which previously were discretionary, mandatory. Executive Order 19 Dec 2014 prohibits the import or export of any goods, services or technology to or from Crimea, the finance, guarantee or facilitation by a US person of any transaction by a foreign person that would otherwise be prohibited if performed by a US person, prohibition on purchasing any real estate or businesses in Crimea and the making of any new investment in Crimea. All sanctions imposed under EOs extended until 2 Mar 2019 under the National Emergencies Act by POTUS. EO 13818 implementing the Global Magnitsky Human Rights Accountability Act blocks all property and interests in property within U.S. jurisdiction of the designated individuals and entities and U.S. persons are generally prohibited from engaging in transactions with them. On the 18 Dec 2018 the Global Magnitsky Human Rights Accountability Act was extended by a further year. On 6 Aug 2108, the US determined pursuant the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act) that the Government of the Russian Federation has used chemical weapons in violation of international law. From 27 Aug 2018, as published in the Federal Register under Public Notice 10519 , mandatory sanctions apply that include the termination of foreign assistance to Russia, termination of arms sales, arms sales financing, prohibition of US Government credit or other financial assistance and a ban on exports of national security-sensitive goods and technology. On 1 August 2019 OFAC issued EO13883, an amendment to EO12851 ,which relates to the CBW Act. W.ef. the 26 August 2019  the Russia Related Directive  will target Russian financial institutions in response to Russia’s use of the nerve agent Novichok in Salisbury in the UK in March 2018. On 20 Sep 2018, EO 13849 was issued that authorises the implementation of certain CAATSA-related sanctions with respect to the Russian Federation and an additional 33 persons have been added to the list. Several General Licences issued and updated for certain activities and transactions. SDN List updated periodically. The national emergency declared under  EO 13660 in 2014 was further extended until 6 March 2020.
EU/UK Council Reg 208/2014 assets freeze for designations (wef 6 Mar 2014) effected by EU 269/2014 (wef 17 Mar 2014), amended by Council Reg 783/2014, (wef 19 Jul 2014), amends criteria for listing, updated periodically and amended by (EU) Council Decision (CFSP) 2017/1547 which renews asset freeze and travel ban and adds Crimean sea ports to designated entities while including derogation for payments to those ports for certain services, renewed until 6th March 2020 by CFSP 2019/354. On the 6 Sept 2019 sanctions against individuals and entities designated under Council Regulation (EU) 269/2014 and Council Decision 2014/145/CFSP were extended until 30 Jan 2020. Council Decision 2014/386/CFSP effective 23 Jun 2014 prohibits the import of goods originating in Crimea or Sevastopol, including related (re)insurance, unless granted a Certificate of Origin by the Government of Ukraine, renewed until 23 June 2019 by (CFSP) 2018/880. Effective from 25 July 2014, EU Implementing Regulation 810/2014 lists further individuals and entities subject to sanctions and include the commercial seaports of both Kerch and Sevastopol. Council Reg 825/2014, effective 30 Jul 2014, includes a ban on finance and investment in the sectors of transport, telecommunications and energy and the exploitation of natural resources in Crimea and Sevastopol and an export ban on key equipment and technology related to those sectors. Council Reg 833/2014 (wef 31 Jul 2014), includes a prohibition on EU nationals and companies buying or selling bonds, equity, or similar financial instruments with a maturity exceeding 90 days, issued by major state-owned Russian banks, development banks, their subsidiaries and those acting on their behalf (including services relating to the issuing of such financial instruments such as brokering); an arms embargo relating to the import and export of arms and related material from/to Russia. Also, a prohibition on the use of dual use goods and technology for military use in Russia or to Russian military end-users. Prohibition on the sale, supply, transfer or export of certain goods and technologies when destined for deep water/artic oil exploration and production or for shale oil projects and a prohibition to satisfy certain claims made by certain persons, entities and bodies. Reg 960/2014, (wef 12 Sep 2014), further restricts Russian access to EU capital markets by including a prohibition on EU nationals and companies buying or selling bonds, equity, or similar financial instruments with a maturity exceeding 30 days and also includes a prohibition on the provision of services for Russian deep water/artic oil exploration and production or for shale oil projects. Council Reg 1290/2014 (wef 5 Dec 2014) to clarify certain provisions in sanction measures. EU Commission issued a guidance note on 16 Dec 2014 to clarify the provisions issued in Jul 2014. Wef 20 Dec 2014, Reg 1351/2014 bans all foreign investment and associated services in Crimea or Sevastopol, services related to tourism including the maritime sector, prohibition on the sale, supply, transfer or export of goods in relation to transport, telecommunications, energy and the exploitation of oil, gas and minerals in Crimea and Sevastopol and ancillary services including direct or indirect financial services. EU published an FAQ on the implementation of its sanctions regime against Russia (October 2015). Russian sectoral sanctions added by EU 2014/512/CFSP to 31 Jul 2014 - Russian sectoral sanctions have been further extended  until 31 Jul 2019 under CFSP 2018/2078.EU 2014/119/CFSP , extended until 6 Mar 2019 by (CFSP) 2018/333. SDN List updated periodically. The UK passed the Chemical Weapons (Asset-Freezing) and Miscellaneous Amendments Regulation 2018, SI 2018/1090 which comes into force on the 7 Nov 2018. The regulation makes provision for UK enforcement of (EU) 2018/1542 and the EU's chemical weapons sanctions regime (CFSP) 2018/1544 and (CFSP) 2018/1542 . The EU prolonged sanctions stated in 2014/145 CFSP until 12 Mar 2019 under CFSP 2018/1237. These restrictive measures were extended further by 6 months until 12 Sept 2019 under CFSP 2019/415
This information has been collated by the International Underwriting Association of London and is intended as a guide only. The IUA does not accept any liability for the accuracy of this information.
This publication is intended to convey only general information about sanctions legislation and associated insurance coverage. It is not, and is not intended to be, a complete statement of the law relating to this area. It should not be relied on or be used as a substitute for legal advice in relation to any particular set of circumstances. Accordingly, IUA does not accept any liability for any loss which may arise from reliance on this information.