Russia sanctions: guidance

Question 1

1. Prohibitions and requirements imposed by the Russia (Sanctions) (EU Exit) Regulations 2019

Accepted Answer

The Regulations impose financial, trade, aircraft, shipping and immigration sanctions for the purposes of encouraging Russia to cease actions which destabilise Ukraine, or undermine or threaten the territorial integrity, sovereignty or independence of Ukraine.

In order to achieve the stated purposes, the Regulations impose a number of prohibitions and requirements. In order to enforce these, the Regulations establish penalties and offences, which are set out in detail in the corresponding report under section 18 of the Sanctions Act in relation to criminal offences.

The prohibitions and requirements imposed by the Regulations apply within the territory of the United Kingdom (UK) (including Northern Ireland) and in relation to the conduct of all UK persons wherever they are in the world. UK persons includes British nationals, as well as all bodies incorporated or constituted under the law of any part of the UK. Accordingly, the prohibitions and requirements imposed by the Regulations apply to all companies established in any part of the UK, and they also apply to branches of UK companies operating overseas.

The maritime enforcement powers contained in Part 10 of the Regulations apply in relation to British ships in international or foreign waters, ships without nationality in international waters and foreign ships in international waters.

It is prohibited to intentionally participate in any activities if you know that the object or effect of them is directly or indirectly to circumvent the prohibitions imposed by the Regulations or to enable or facilitate the contravention of those prohibitions.

If you are unclear about any aspect of the Regulations, in particular about whether action you are considering taking could contravene the Regulations, you are advised to seek independent legal advice.

Prohibitions and requirements for the financial, trade, aircraft, shipping and immigration sanctions contained in the Regulations are set out below.

1.1 Non-government controlled territory of Ukraine

The territorial scope of certain measures in the Regulations is ‘non-government controlled Ukrainian territory’. This is defined in regulation 2 as ‘Crimea and non-government controlled areas of the Donetsk and Luhansk oblasts’.

‘Crimea’ is further defined as the Autonomous Republic of Crimea and the City of Sevastopol.

‘Non-government controlled areas of the Donetsk and Luhansk oblasts’ means the parts of the Donetsk oblast and the Luhansk oblast of Ukraine as determined in Decree Number 32/2019^{[footnote 1]} issued by the President of Ukraine on 7 February 2019 under Article 1 of the Law of Ukraine of 18 January 2018 Nr. 2268-VIII^{[footnote 2]} ‘On the Peculiarities of State Policy on Ensuring the State Sovereignty of Ukraine over Temporarily Occupied Territories in Donetsk and Luhansk Oblasts’.

Translations into English of Decree Number 32/2019 and Law Number 2268-VIII are set out in Annexes A and B to this guidance.

1.2 Designation of persons

The Regulations provide that the Secretary of State may designate persons by name for the purposes of the financial and/or immigration and/or aircraft and/or shipping sanctions if they are, or have been, involved in a relevant activity (as defined in regulation 6 of the Russia (Sanctions) (EU Exit) Regulations 2019 (as amended)).

The Regulations also make provision for the Secretary of State to provide that persons of a specified description are designated persons for the purposes of the financial and/or immigration and/or aircraft and/or shipping sanctions.

The UK Sanctions List provides details of the people designated under the Regulations, and details of the sanctions in respect of which they have been designated.

1.3 Financial sanctions

Asset freeze and making available provisions

The Regulations impose financial sanctions through a targeted asset freeze on designated persons and prohibitions on making funds or economic resources available. This involves the freezing of funds and economic resources (non-monetary assets, such as property or vehicles) of designated persons and ensuring that funds and economic resources are not made available to or for the benefit of designated persons, either directly or indirectly.

More information on financial sanctions can be found in the OFSI guidance.

OFSI is the authority for implementing the UK’s financial sanctions on behalf of HM Treasury. OFSI helps to ensure that financial sanctions are properly understood, implemented and enforced in the UK. Further information on how OFSI implements financial sanctions can be found on the OFSI pages of GOV.UK.

Other financial and investment restrictions

The Regulations prohibit a person from directly or indirectly dealing with a transferable security or money market instrument if it has a maturity exceeding 30 days, and was issued after 1 August 2014 by:

Sberbank, VTB bank, Gazprombank, Vnesheconombank (VEB), Rosselkhozbank (as listed in Schedule 2)
an entity incorporated or constituted in a country other than the UK which is owned by one or more of the five banks listed above
an entity acting on behalf of or at the direction of those five banks named above or an entity incorporated or constituted in a country other than the UK which is owned by one or more of those five banks

It is also prohibited for a person to directly or indirectly deal with a transferable security or money market instrument if it has a maturity exceeding 30 days, and was issued after 12 September 2014 by:

OPK Oboronprom, United Aircraft Corporation, Uralvagonzavod, Rosneft, Transneft or Gazprom Neft (as listed in Schedule 2)
an entity incorporated or constituted in a country other than the UK which is owned by one or more of the six entities listed above
an entity acting on behalf of or at the direction of those six entities named above or an entity incorporated or constituted in a country other than the UK which is owned by one or more of those six entities

It is prohibited for a person to directly or indirectly deal with a transferable security or money-market instrument if it has a maturity exceeding 30 days, and was issued on or after 1 March 2022 by:

an entity incorporated or constituted under the law of the UK and owned by one or more of the entities listed in Schedule 2
an entity acting on behalf or at the direction of the above

It is prohibited for a person to directly or indirectly deal with a transferable security or money-market instrument if it has a maturity exceeding 30 days, and was issued on or after 1 March 2022 by:

a person connected with Russia (this is defined in regulation 19A(2), and is subject to the exclusions in regulation 16(4D)(a))
an entity owned by such persons
an entity acting on behalf or at the direction of any of the above

It is also prohibited for a person to directly or indirectly deal with a transferable security or money-market instrument which was issued on or after 1 March 2022 by the Government of Russia (as defined in regulation 6).

Loan and credit arrangements

The Regulations prohibit a person from directly or indirectly granting or entering into any arrangement to grant a new loan or credit, with a maturity exceeding 30 days to:

the entities listed in Schedule 2
an entity which is incorporated or constituted under the law of a non-UK country and owned by one or more of the entities listed in Schedule 2, or an entity acting on behalf or at the direction of either that entity or an entity listed in Schedule 2
an entity which is incorporated or constituted under the law of the UK and owned by an entity listed in Schedule 2, on or after 1 March 2022
a person connected with Russia (this is defined in regulation 19A(2), and is subject to the exclusions in regulation 17(5))

The Regulations also prohibit a person from directly or indirectly granting or entering into any arrangement to grant a new loan or credit to the Government of Russia (as defined in regulation 6), on or after 1 March 2022.

Correspondent banking relationships and sterling payments

The Regulations prohibit a UK credit or financial institution from establishing or continuing a correspondent banking relationship with a designated person if the UK credit or financial institution knows, or has reasonable cause to suspect, that the correspondent banking relationship is with a designated person.

This prohibition applies to correspondent bank accounts held by UK credit or financial institutions in any currency.

The Regulations also prohibit a UK credit or financial institution from processing a sterling payment to, from or via, a designated person, or a credit or financial institution (domiciled anywhere including the UK) owned or controlled by the designated person, if the UK credit or financial institution has reasonable cause to suspect that the sterling payment is to, from or via a designated person.

This prohibition applies to payment chains or third party payments.

Investments in relation to non-government controlled Ukrainian territory

The Regulations prohibit:

directly or indirectly acquiring, extending a participation, or acquiring any ownership interest in land located in non-government controlled Ukrainian territory
directly or indirectly acquiring, extending a participation, or acquiring any ownership interest in an entity which has a place of business located in non-government controlled Ukrainian territory (“a relevant entity”)
directly or indirectly granting any loan or credit, entering into any arrangement to grant a loan or credit or otherwise provide funds, including equity capital, to a relevant entity or for the purpose of financing the relevant entity
directly or indirectly establishing any joint venture in non-government controlled Ukrainian territory or with a relevant entity
providing investment services directly related to the activities referred to in (1) to (4) above

Provision of financial services for the purpose of foreign exchange reserve and asset management

The Regulations prohibit a UK individual or entity from providing financial services for the purpose of foreign exchange reserve and asset management to:

the Central Bank of the Russian Federation
the National Wealth Fund of the Russian Federation
the Ministry of Finance of the Russian Federation
a person owned or controlled directly or indirectly by any of the persons above; or
a person acting on behalf of or at the direction of any of the persons above

“Foreign exchange reserve and asset management” means activities relating to the reserves or assets of the persons listed above. Such reserves or assets include money market instruments (including cheques, bills and certificates of deposit); foreign exchange; derivative products (including futures and options); exchange rate and interest rate instruments (including products such as swaps and forward rate agreements); transferable securities; other negotiable instruments and financial assets (including bullion, such as gold); and special drawing rights. For example, it is prohibited to provide financial services to carry out transactions with the Central Bank of the Russian Federation involving its gold.

1.4 Trade sanctions

The Regulations impose trade prohibitions relating to:

military goods and military technology (as specified in Schedule 2 to the Export Control Order 2008)
any thing which falls within Chapter 93 of the Goods Classification Table^{[footnote 3]}, other than military goods
provision of technical assistance, armed personnel, financial services or funds, or associated brokering services where such provision enables or facilitates the conduct of certain military activities
dual-use goods and technology (as specified in Annex I to Council Regulation 428/2009 as retained by the European Union (Withdrawal) Act 2018 (‘the Dual-Use Regulation’))
critical-industry goods and technology (as specified in Schedule 2A to the Regulations)
aviation and space goods and technology (as specified in Schedule 2C to the Regulations)
energy-related goods (as specified in Part 2 of Schedule 3 to the Regulations)
energy-related services
goods originating in non-government controlled Ukrainian territory
infrastructure-related goods (as specified in Part 3 of Schedule 3 to the Regulations)
services relating to a relevant infrastructure sector in non-government controlled Ukrainian territory
services relating to tourism in non-government controlled Ukrainian territory

There are circumstances (set out in the relevant lists of controlled items) in which certain items are not controlled, for example when body armour or a helmet is accompanying a person for that person’s own protection. Please check the relevant lists as applicable.

Energy-related goods, infrastructure-related goods and aviation and space goods are identified by reference to commodity codes in the Goods Classification Table. The UK Tariff sets out a system for the classification of goods for importers to ascertain the applicable rate of import duty for their goods. It is this system of classification that is used in the Regulations in order to determine whether these goods are within scope of the prohibitions.

This means that where commodity codes are used in the Regulations, the relevant goods are those which would be classified under the relevant commodity code (applying the rules in the UK Tariff) if the goods were being imported to the UK.

Some of the listings of commodity codes in the Regulations have an “ex” before the code. Where this “ex” appears before a commodity code this means the prohibitions in the Regulations do not apply to all of the items under that commodity code. The prohibitions will only apply to those items that (1) would be classified under the commodity code and (2) match the description given next to the relevant “ex” code entry in the Regulations.

Further detail on these trade prohibitions, including key terminology used, is explained below. Please have regard to the relevant legislation which contains full definitions of terms used herein.

Export of goods

The concept of ‘export’ is set out in customs legislation, but is further detailed in Paragraph 32 of Schedule 1 to the Sanctions Act, which clarifies that “export” means export from the UK, but does not capture where goods are removed to the Isle of Man from the UK.

The export prohibitions at regulations 22 (restricted goods) prohibit the export of certain goods to Russia as well as exports that are for use in Russia. This means that, even if the immediate destination is not Russia, the prohibition may still apply.

The export prohibitions at regulation 40 prohibit the export of energy-related goods for use in Russia.

The export prohibitions in Chapter 5 (infrastructure-related goods) prohibit certain exports to and for use in non-government controlled Ukrainian territory. This means that, even if the immediate destination is not non-government controlled Ukrainian territory, the prohibition may still apply.

Exporters should check the ultimate end use of goods and may apply for a licence or contact the Export Control Joint Unit (ECJU) if they know or think the items may be used in Russia or in non-government controlled Ukrainian territory.

A sanctions licence is not required for exports of non-military goods covered by the Regulations from Northern Ireland to an EU Member State where the final destination is Russia or non-government controlled Ukrainian territory (as applicable). You will however have to comply with any licensing requirements that apply in the relevant EU Member State for the onward export to Russia or non-government controlled Ukrainian territory. You will also have to comply with any other licensing requirements under UK export control legislation as applicable.

Import of goods

The concept of ‘import’ is set out in customs legislation but is further detailed in Paragraph 33 of Schedule 1 to the Sanctions Act. This clarifies in particular that goods removed to the UK from the Isle of Man are not to be regarded as imported. Paragraph 34 details limited exceptions to this.

The import prohibition in regulation 23 covers imports that are consigned from Russia and goods that originated in Russia. This means that even if the immediate place the goods were shipped from was not Russia, the prohibition may still apply.

The import prohibitions in regulation 47 cover imports of goods which originated in non-government controlled Ukrainian territory. This means that even if the immediate place the goods were shipped from was not non-government controlled Ukrainian territory, the prohibition may still apply.

Therefore, importers should check the original place goods were consigned from and apply for a licence or contact the Import Licensing Branch if they think the items may have originated in or have been consigned from Russia or non-government controlled Ukrainian territory.

A sanctions licence is not required for imports into Northern Ireland of non-military goods covered by the Regulations from an EU Member State which originate in or are consigned from Russia or non-government controlled Ukrainian territory (as applicable). You will however have to comply with any licensing requirements that apply in the relevant EU Member State for the original import into the customs territory of the EU. You will also have to comply with any other licensing requirements under UK import control legislation as applicable.

Supply and delivery of goods

Supply and delivery prohibitions in the Regulations prohibit a person from directly or indirectly supplying or delivering certain goods from a third country to a place in Russia (or non-government controlled Ukrainian territory in respect of Chapter 5, infrastructure-related goods).

Regulation 24 (restricted goods) also prohibits the direct or indirect supply or delivery from a place in Russia to a third country.

Regulations 24(4) and 41(4) specify that for the purposes of those prohibitions a “third country” is a country that is not the UK, Isle of Man or Russia. Regulation 49(4) specifies that for the purposes of that prohibition a “third country” is a country that is not the UK, Isle of Man or non-government controlled Ukrainian territory.

Making available or acquiring goods and technology

Prohibitions in the Regulations (aside from those in Chapter 5) on making certain goods or technology available (e.g. through a sale) include directly or indirectly making them available for use in Russia or to a “person connected with Russia”. Some of the prohibitions also prohibit directly or indirectly acquiring certain goods or technology which originate in Russia or which are located in Russia or from a person connected with Russia.

Prohibitions in Chapter 5 on making infrastructure-related goods available include directly or indirectly making them available for use in non-government controlled Ukrainian territory or to a “person connected with non-government controlled Ukrainian territory”.

Regulation 21 sets out when a person is to be regarded as “connected with” Russia and when a person is to be regarded as “connected with” non-government controlled Ukrainian territory (and this applies where these terms are used in other trade prohibitions in this Part of the Regulations).

Transfer of technology

Prohibitions in the Regulations on the transfer of certain technology include transfer to a place in Russia or a person connected with Russia.

Regulation 26 (restricted technology) also prohibits transfer to persons outside the UK or to a place outside the UK, where the transfer is from a place in Russia.

The term ‘transfer’ is defined in Paragraph 37 of Schedule 1 to the Sanctions Act, which states that it ‘means a transfer by any means (or combination of means), including oral communication and that transfer of goods on which the technology is recorded or from which it can be derived, other than the export of such goods.’

Where restricted technology is contained within a good, that good would be classified, respectively, as a restricted good under the accompanying goods-related provisions. This includes information contained on USB memory devices, laptops, tablets and the like.

Technical assistance

The term “technical assistance” in relation to goods or technology is defined in regulation 21, which states that it means:

technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, or
any other technical service relating to the goods or technology

Prohibitions apply where the technical assistance relates to certain specified goods or technology.

The prohibitions apply to the direct or indirect provision of such technical assistance (1) to persons “connected with Russia” or (2) for use in Russia, except those in Chapter 5 which apply where the provision is (1) to persons “connected with non-government controlled Ukrainian territory” or (2) for use in non-government controlled Ukrainian territory.

This means that, even if the person to whom you are providing the relevant technical assistance is not in or “connected with Russia” (or non-government controlled Ukrainian territory, for Chapter 5), the prohibition may still apply if the goods or technology to which the technical assistance relates are for use in Russia (or non-government controlled Ukrainian territory, for Chapter 5). Therefore, if you are providing technical assistance you should check whether the goods or technology may be used in Russia or non-government controlled Ukrainian territory, as appropriate, and apply for a licence or contact ECJU if so.

Regulation 46A prohibits the direct or indirect provision of technical assistance to or for the benefit of persons designated for the purpose of this regulation, where that assistance relates to an aircraft or ship. The persons designated for the purposes of this provision are set out in the UK Sanctions List under ‘sanctions imposed’.

The prohibition applies in relation to any aircraft or ship. You should carry out your own checks to determine to whom, or for whose benefit, you are providing technical assistance related to aircraft or ships.

‘Financial services’ refer to any services of a financial nature in many different forms including insurance and banking. Financial services include payment and money transmission services. The full definition of ‘financial services’ can be found in Section 61 of the Sanctions Act.

‘Funds’ means financial assets and benefits of every kind, including cash, securities and interest. The full definition of ‘funds’ can be found in Section 60 of the Sanctions Act.

Trade sanctions prohibitions on the provision of financial services and funds apply where they relate to certain specified goods or technology.

The prohibitions in the Regulations apply to the direct or indirect provision of financial services, and the direct or indirect making available of funds to persons connected with Russia (or non-government controlled Ukrainian territory, in respect of Chapter 5) in pursuance of or in connection with an arrangement set out in the Regulations (at regulation 28(1), 44(1) and 52(1)). This captures arrangements where the object or effect falls into one of the prohibitions, for example the export or import of certain goods or direct or indirect supply or delivery of certain goods.

These prohibitions also prohibit the direct or indirect provision of financial services or funds in pursuance of or in connection with specific arrangements involving Russia (or non-government controlled Ukrainian territory in respect of Chapter 5) (as set out at regulation 28(3), 44(3) and 52(3)).

Brokering services

The definition of ‘brokering services’ is set out in regulation 21, which states that it means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to):

the selection or introduction of persons as parties or potential parties to the arrangement
the negotiation of the arrangement
the facilitation of anything that enables the arrangement to be entered into, and
the provision of any assistance that in any way promotes or facilitates the arrangement

The Regulations prohibit the direct or indirect provision of brokering services where they relate to specific arrangements. Those arrangements are set out in regulations 29, 45 and 53.

Other service provisions

Certain other services are prohibited in the Regulations. These include the provision of certain services which enable or facilitate certain military activities, insurance and reinsurance services, energy-related services, infrastructure-related services, and tourism-related services.

As set out in regulation 30, the direct or indirect provision of the following services is prohibited where such provision enables or facilitates the conduct of military activities carried on or proposed to be carried on by the Russian military or any other military end-user who is a person connected with Russia:

a) technical assistance

b) armed personnel

c) financial services or funds, or

d) brokering services in relation to an arrangement whose object or effect is to provide, in a non-UK country any of the services mentioned in paragraphs (a) - (c)

Provisions on insurance and reinsurance services are set out in regulation 29A and prohibit the direct or indirect provision of insurance and reinsurance services where it relates to aviation and space goods and aviation and space technology.

The prohibitions apply to the direct or indirect provision of insurance and reinsurance services (1) to persons “connected with Russia” or (2) for use in Russia. This means that, even if the person to whom you are providing the relevant insurance or reinsurance service is not in or “connected with Russia” (as defined in Regulation 21), the prohibition may still apply if the goods or technology to which the service relates are for use in Russia.

Therefore, if you are providing insurance or reinsurance services you should check whether the goods or technology may be used in Russia, and apply for a licence or contact ECJU if so.

Provisions on energy-related services are set out in regulation 46 and prohibit the direct or indirect provision of relevant energy services, defined as certain “specified services” necessary for a “relevant oil exploration or production project” in Russia.

Provisions on infrastructure-related services and tourism-related services are set out in regulation 54 and prohibit the provision of services relating to certain specified infrastructure sectors or services relating to tourism in non-government controlled Ukrainian territory.

DIT contact details

The Department for International Trade (DIT) has overall responsibility for trade sanctions licensing. For general guidance on export controls and trade sanctions, contact the Export Control Joint Unit (ECJU):

email: exportcontrol.help@trade.gov.uk or tradesanctions@trade.gov.uk

helpline: +44 (0)20 7215 4594

For general guidance on import controls and trade sanctions, contact the DIT Import Controls team:

email: importcontrols@trade.gov.uk

1.5 Transport sanctions

The Regulations impose transport prohibitions relating to aircraft and shipping.

Shipping sanctions

The Regulations prohibit Russian ships, and other ships specified by the Secretary of State, from entering ports in the United Kingdom. The Regulations also confer powers on the Secretary of State and harbour authorities to issue port barring directions to the master or pilot of a specified ship. The Regulations provide the Secretary of State with a power to control the movement of Russian ships or specified ships by requiring them to leave or enter specified ports, proceed to a specified place or remain where they are.

The Regulations prohibit the registration of ships owned, controlled, chartered or operated by designated persons or persons connected with Russia on the UK Ship Register and confer powers on the Secretary of State to direct the UK Ship Registrar to terminate the registration of such ships.

The Regulations also confer powers on the Secretary of State and harbour authorities to detain Russian ships or specified ships at ports or anchorages.

‘Russian ship’ is not a term used in the Regulations. However, it is used in this shipping section of the guidance to aid understanding and readability. It means:

owned, controlled, chartered or operated by a designated person
owned, controlled, chartered or operated by persons connected with Russia
registered in Russia, or
flying the flag of Russia

These sanctions do not apply to other ships originating from or destined for Russian ports; ships carrying cargo to or from Russia are not within scope of the transport sanctions unless they fall within the definition of a Russian ship or specified ship as above. These Regulations do not apply to ships (that are not otherwise included in the Regulations) with Russian crews or Masters, unless they are a designated person.

The Regulations also provide the Secretary of State with the power to issue directions in relation to the movement of British cruise ships, preventing them from entering any ports located in Crimea, or in the non-government controlled areas of the Donetsk and Luhansk oblasts. Such a direction can be given to any master or pilot of a British ship which is a cruise ship (defined as a ship which is providing cruise services).

Aircraft sanctions

The Regulations prohibit a Russian aircraft which is owned, chartered or operated by persons connected with Russia or designated persons from overflying the United Kingdom or landing in the United Kingdom.

In addition, they provide a power for the Civil Aviation Authority (CAA) to refuse to register an aircraft or for the Secretary of State to direct the CAA to terminate the registration of an aircraft that is owned or operated by a designated person or chartered by a designated person.

They confer direction making powers for the Secretary of State, air traffic control and airport operators regarding aircraft movements in United Kingdom airspace and at United Kingdom airports. The Regulations also provide a power for the Secretary of State to direct an airport operator to secure the detention of a Russian aircraft at an airport or to secure the movement of a Russian aircraft to a specified airport.

Russian aircraft is defined as an aircraft:

owned, chartered or operated by a designated person, or a person connected with Russia, or
registered in Russia

The Department for Transport (DfT) is ultimately responsible for the implementation of these transport restrictions, some of which are enforced through the Maritime and Coastguard Agency, harbour authorities, National Air Traffic Services Limited (NATS), Civil Aviation Authority (CAA) and airport operators.

1.6 Immigration sanctions

The effect of the Regulations is to impose a travel ban on persons designated by the Secretary of State for the purposes of being made subject to immigration sanctions under the Sanctions Act. Such persons are excluded persons for the purposes of Section 8B of the Immigration Act 1971.

Designated individuals will be refused leave to enter or remain in the UK. Any application they make for a visa to travel to the UK, including for transit purposes, will be refused. Any foreign national who is subject to a travel ban under the Regulations, and who is currently in the UK, will have their permission to stay in the UK cancelled and steps will be taken to remove them from the UK.

If you are the subject of an immigration sanction and try to travel to the UK, carriers are required to deny you boarding.

Further information on how the Home Office deals with those who are subject to a travel ban can be found on the Home Office pages of GOV.UK.

1.7 Information and record keeping

Part 8 of the Regulations places obligations on relevant firms (the definition of which is set out in the Regulations) to report information to HM Treasury about known or suspected designated persons or about persons who may have committed an offence under the Regulations.

It also grants powers to HM Treasury to request information from, amongst others, a designated person, including powers to request the production of documents. It also establishes offences for failing to comply with these requests (including for providing false information).

Part 8 also establishes information powers and record-keeping responsibilities in relation to the trade sanctions contained in the Regulations. It provides for offences for failing to comply with any of those requirements or intentionally obstructing an official in the exercise of those powers.

If you have obligations or responsibilities under Part 8 of the Regulations, it is important that you familiarise yourself with them. If you are unclear of your obligations or responsibilities, you are advised to seek independent legal advice.

Question 2

2. How will these sanctions measures be enforced?

Accepted Answer

The Regulations make it a criminal offence to contravene the trade, aircraft, shipping and financial sanctions, as well as to enable or facilitate a contravention of, or to circumvent, any of the prohibitions in the Regulations. They also prescribe the mode of trial and penalties that apply to such offences. In some cases, offences related to contraventions of prohibitions in the Regulations are contained within other legislation, such as the Customs and Excise Management Act 1979 (CEMA).

In addition to the below, further details on offences and penalties can be found in the corresponding report under section 18 of the Sanctions Act.

2.1 Financial sanctions

Breaches of financial sanctions are a serious criminal offence. Any breach of the main financial prohibitions in the Regulations is an offence that is triable either way and carries a maximum sentence on indictment of 7 years’ imprisonment or a fine (or both).

Offences under regulations 70(6) and 74 (information offences in connection with financial sanctions under the Regulations) are summary offences only and carry a maximum sentence of 6 months’ imprisonment or a fine (which in Scotland or Northern Ireland may not exceed level 5 on the standard scale) or both.

OFSI is responsible for monitoring compliance with financial sanctions and for assessing suspected breaches. It also has the power to impose monetary penalties for breaches of financial sanctions and to refer cases to law enforcement agencies for investigation and potential prosecution.

OFSI works with other parts of government, supervisory bodies and regulators to consider all cases reported to it, sharing relevant information accordingly.

If you find out that a person or organisation you are dealing with is subject to the financial sanctions detailed in the Regulations, you must immediately:

stop dealing with them
freeze any assets you are holding for them
inform OFSI as soon as possible by either emailing ofsi@hmtreasury.gov.uk or by calling their general enquiries line: +44 (0)20 7270 5454

More detailed information on OFSI’s approach to compliance and enforcement can be found in Chapter 7 of OFSI’s guidance.

2.2 Trade sanctions

Any breach of the trade sanctions prohibitions in the Regulations is triable either way and carries a maximum sentence on indictment of 10 years’ imprisonment or a fine (or both). Any breach of the trade licensing provisions is also triable either way and carries a maximum sentence on indictment of 2 years’ imprisonment or a fine (or both).

HM Revenue and Customs (HMRC) is responsible for enforcing the licensing restrictions and investigating suspected offences.

If you discover that you have breached any of the trade prohibitions or licensing provisions, you should report the irregularity to HMRC (sometimes known as ‘voluntary disclosure’) as soon as possible. If the irregularity was found on an Export Control Joint Unit compliance audit, the compliance inspector will have informed HMRC and you are strongly advised to do the same. Guidance is available on how to make a voluntary disclosure.

2.3 Transport sanctions

A breach of the transport sanctions relating to prohibition on port entry, failing to comply with a port barring direction or a port entry or movement direction is an offence that is triable either way and carries a maximum sentence of 7 years’ imprisonment or a fine (or both).

The offence of failing to comply with a detention direction in relation to a ship is triable either way and carries a sentence of a fine.

A breach of the transport sanctions relating to the movement of aircraft includes:

the failure of an operator or pilot of a Russian aircraft to comply with the prohibition on overflying the United Kingdom or landing in the United Kingdom
the failure of an airport operator, without reasonable excuse, to comply with a direction given by the Secretary of State
the failure of an operator or pilot in command of a Russian aircraft to comply with a direction given by air traffic control or an airport operator

All of which are offences that are triable either way and carry a maximum sentence of 7 years’ imprisonment or a fine (or both).

The Secretary of State may notify a person that the existence or content of a port barring, entry or movement direction and any direction relating to the movement of aircraft, or anything done under such directions, is to be treated as confidential. Disclosure of confidential information carries a maximum sentence of 6 months’ imprisonment on summary conviction or a fine (or both).

The Department for Transport (DfT) is ultimately responsible for the implementation of transport sanctions.

If you become aware that a breach of the transport sanctions detailed in the Regulations has taken or will take place, then you must report it as soon as possible by calling DfT on 020 7944 5999 and by emailing transportsanctions@dft.gov.uk.

Question 3

3. Are there circumstances when I can get an authorisation or licence for a sanctioned activity?

Accepted Answer

Licensing and exception provisions are contained in Part 7 of the Regulations.

3.1 Exceptions

The Regulations set out exceptions to some of the sanctions prohibitions which apply within certain defined circumstances. An exception applies automatically, and does not require you to obtain a licence issued in accordance with the Regulations.

The Regulations establish exceptions relating to financial sanctions including for the crediting of a frozen account by a relevant institution (any such interest or other earnings will be frozen in accordance with the relevant legislation underpinning the asset freeze). An exception also exists from the prohibition on making funds available to a designated person, when funds are transferred to a frozen account in discharge (or partial discharge) of an obligation which arose before the recipient became a designated person.

There are also exceptions relating to prohibitions of loans and credit arrangements. The exception for relevant loans consisting of a drawdown or disbursement applies to arrangements entered into before 15 September 2014, where the loan has been made or granted to a person listed in Schedule 2, entities owned by them and incorporated or constituted under the law of a non-UK country, or entities acting on behalf or at the direction of either of the above.

Where such a loan has been made or granted to an entity incorporated or constituted under the law of the UK and owned by a person listed in Schedule 2, or a person connected with Russia, or the Government of Russia, the exception applies to arrangements entered into before 1 March 2022.

There are also exceptions relating to prohibitions on correspondent banking relationships. The exception relating to aviation enables the payment of any fee or charge required to permit an aircraft to overfly Russia or to land in or take off from Russia.

There are also exceptions relating to investments in relation to non-government controlled Ukrainian territory.

The Regulations set out exceptions relating to some of the trade restrictions. Regulation 61 provides for an exception to certain trade prohibitions where the act is an act dealing with an emergency. This is defined as an act assisting with the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health or safety, infrastructure or the environment. This exception should only be relied on where there is genuinely insufficient time to apply for a licence to cover the activity of assisting in prevention or mitigation of the event. The exception can only be relied upon where satisfactory justification is received within 5 working days beginning with the day on which the act is done, and where the activity was genuinely to deal with the emergency.

Regulation 60ZA provides for certain time-limited exceptions to the trade sanctions relating to non-government controlled areas of the Donetsk and Luhansk oblasts, if related to an obligation arising from a contract concluded before 23 February 2022.

These exceptions provide that:

the prohibitions in regulation 47 (imports from non-government controlled Ukrainian territory) or regulation 52(3)(a) (financial services and funds in relation to imports from non-government controlled Ukrainian territory) are not contravened if the action carried out under these contracts, or ancillary contracts necessary for their execution, is carried out by 24 May 2022 and is notified to the Secretary of State at least 10 days beforehand
the prohibitions in regulation 48 to 51, 52(1), (2) or (3)(b) to (e), or 53 (trade in relation to non-government controlled Ukrainian territory) are not contravened if the action carried out under these contracts, or ancillary contracts necessary for their execution, is carried out by 24 August 2022 and is notified to the Secretary of State at least 5 days beforehand
the prohibitions in regulation 54(1)(a) (prohibition on infrastructure-related services relating to non-government controlled Ukrainian territory) are not contravened if the action carried out under these contracts, or ancillary contracts necessary for their execution, is carried out by 24 August 2022
the prohibition in regulation 54(1)(b) (prohibition on tourism services relating to non-government controlled Ukrainian territory) is not contravened if the action carried out under these contracts, or ancillary contracts necessary for their execution, is carried out by 24 August 2022 and is notified to the Secretary of State at least 5 days beforehand.

Regulation 60A provides for certain exceptions in relation to prohibitions relating to the export of critical-industry goods in regulations 22, 24(1)(a), 25(1)(a) and (b), 26(1)(a) and (b), 27 and 29. This provides that prohibitions are not contravened:

in relation to any goods or technology which are:

the personal effects of a person travelling to or from Russia
of a non-commercial nature for the personal use of a person travelling to or from Russia and contained in that person’s luggage
necessary for the official purposes of a diplomatic mission or consular post in Russia, or of an international organisation enjoying immunities in the UK in accordance with international law

by the export, supply and delivery, and making available/transfer of:

a consumer communication device for civilian use
a software update for civilian use

by the provision of technical assistance, financial services and brokering services in relation to:

a consumer communication device for civilian use
a software update for civilian use

Regulation 60C provides for certain exceptions in relation to prohibitions relating to the export of critical-industry goods and aviation and space goods in regulations 22 and 28. This provides that certain prohibitions are not contravened by the removal of an aircraft from the UK to Russia:

if it travels under its own power, and
in the case of an aircraft, it is carrying goods or passengers, or travelling from the UK in order to undertake a return flight carrying goods or passengers; and
its removal is not for the purpose of a transfer of ownership (including any of its component parts) or a change of operator

It also provides that certain prohibitions are not contravened by the removal of any vessel to Russia:

if it is removed from the UK under its own power, and
its removal is not for the purpose of a transfer of ownership (including any of its component parts) or a change of operator

Regulation 60D provides that the prohibitions in regulation 46A on technical assistance relating to aircraft and ships are not contravened by providing technical assistance in circumstances where a failure to do so would endanger the lives of persons on board or the safety of an aircraft in flight or a ship at sea.

Regulation 62 provides for an exception in relation to prohibitions relating to the import of goods originating in non-government controlled Ukrainian territory, and the provision of financial services or funds in pursuance of or in connection with an arrangement whose object or effect is the import of goods which originate in non-government controlled Ukrainian territory, where the goods have been satisfactorily certified by or on behalf of the Government of Ukraine as originating in Ukraine.

Regulation 62A establishes an exception to regulations 11 to 15 and 18 and Chapters 2 to 6 of Part 5 (Trade) which provides that prohibitions are not contravened if conduct is authorised by a licence which is issued under the law of the Channel Islands, Isle of Man or any British Overseas Territory for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

The Regulations establish exceptions relating to some of the transport sanctions. There is an exception for the granting of access to a port where the access is needed by a ship in the case of an emergency or where a port entry or movement direction has been given in relation to the ship. Exceptions also apply in relation to the movement of aircraft in in the case of an emergency.

The Regulations also include an exception in relation to any prohibition or requirement imposed by the Regulations for actions which a responsible officer has determined to be in the interests of national security, or the prevention or detection of serious crime in the UK or elsewhere.

If you are unsure whether an exception applies in your circumstances, you are advised to seek independent legal advice.

3.2 Licensing for financial sanctions

Where a person is designated for the purposes of the financial sanctions (asset freeze measures and making available provisions) contained in the Regulations, the designated person or representative (on their behalf) may apply for a licence from OFSI to use their funds or economic resources (non-monetary assets, such as property or vehicles). Part 1 of Schedule 5 to the Regulations sets out the purposes pursuant to which, or for which activities, OFSI may grant an individual licence. In summary these are:

basic needs
reasonable professional fees for or reasonable expenses associated with the provision of legal services
reasonable fees or service charges arising from the routine holding or maintenance of frozen funds or economic resources
extraordinary expenses
pre-existing judicial decisions etc
extraordinary situations
prior obligations
diplomatic missions and consular posts
humanitarian assistance activities
medical goods and services
production or distribution of food

The following licensing grounds, set out in Part 1A of Schedule 5, apply to loans and credit:

humanitarian assistance activities
medical goods and services
production or distribution of food
diplomatic missions and consular posts
space activities
extraordinary situations

Where a person is designated for the purposes of correspondent banking and sterling clearing prohibitions contained in the Regulations, a person or representative (on their behalf) may apply for a licence from OFSI to allow sterling payments to, from or via a designated person by the designated person. Part 1B of Schedule 5 to the Regulations sets out the purposes pursuant to which, or for which activities, OFSI may grant an individual licence. In summary these are:

basic needs – including for the provision of insolvency services
legal services
financial regulation
extraordinary situations

A person or representative (on their behalf) may apply for a licence from OFSI to allow sterling payments to, from or via a designated person. Part 1C of Schedule 5 to the Regulations sets out the purposes pursuant to which, or for which activities, OFSI may grant an individual licence. In summary these are:

humanitarian assistance activities
medical goods and services
production or distribution of food
diplomatic missions and consular posts
space activities

A person or representative (on their behalf) may apply for a licence from OFSI to allow provision of financial services for the purposes of foreign exchange reserve and asset management to the Central Bank of the Russian Federation; the National Wealth Fund of the Russian Federation or the Ministry of Finance of the Russian Federation. Part 1D of Schedule 5 to the Regulations sets out the purposes pursuant to which, or for which activities. OFSI may grant an individual licence. In summary these are:

humanitarian assistance activity
financial regulation
financial stability
safety and soundness of a firm
extraordinary situation

Licence applications can also be made to OFSI for acts that would otherwise be prohibited under regulation 18 (investments in relation to non-government controlled Ukrainian territory) on these 3 grounds:

consular posts
medical and educational purposes
health and the environment

OFSI has also issued general licences under this regime. For details of the general licences that are in force, please visit OFSI’s general licence page.

Further information on exceptions and licensing grounds can be found in OFSI’s guidance.

Information on licence applications and the relevant form can be found on OFSI’s GOV.UK licensing webpage.

3.3 Licensing for trade sanctions

Licences may also be issued for certain trade activities that would otherwise be prohibited by the Regulations. The Department for International Trade (DIT) has overall responsibility for trade sanctions licensing. The Secretary of State for International Trade is ultimately responsible for decisions to grant or refuse a trade sanctions licence in any individual case.

The Export Control Joint Unit sits within DIT and is responsible for administering the licensing provisions on behalf of the Secretary of State for all trade sanctions, except those relating to imports which are administered by the DIT Import Licensing Branch. In exercising these powers, DIT seeks and considers advice from other government departments.

In making decisions on whether to grant a licence to permit something which would otherwise be prohibited under Part 5 of the Regulations, the Secretary of State will consider each application on a case-by-case basis to determine whether granting a licence would be consistent with the stated purposes of the sanctions regime and any UN or other relevant international law obligations.

For some prohibitions there are some specific activities that DIT considers are likely to be consistent with the aims of the sanctions. These are set out in the table below. If you think that your proposed activity falls within one of these specific descriptions you should make this clear and explain why you believe this to be the case in your application for a licence.

You should not assume that a licence will be granted or engage in any activities prohibited by trade sanctions until your licence has been granted.

Prohibition description	Prohibition reference	Considerations for licensing
Prohibitions on the import, acquisition, export, making available, transfer, supply, or delivery of military goods or technology	Regulations 22 to 26	A licence may be granted for the export, making available, transfer, supply, or delivery of military goods or technology if the goods or technology relate to the execution of contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such contracts.
		A licence may be granted for the acquisition, export, making available, transfer, supply, or delivery of military goods or technology if the acquisition, export, making available, transfer, supply or delivery is necessary for the maintenance and safety of existing capability within the UK.
		A licence may be granted for the import of military goods if the import is necessary for the maintenance and safety of existing capability within the UK.
		A licence may be granted for the import, acquisition, export, making available, supply, or delivery of: Hydrazine (CAS 302-01-2) in concentrations of 70% or more; or Monomethyl hydrazine (CAS 60-34-4) if it is for use in launchers operated by UK service providers, or for the use in launches by the European Space Agency or UK space programmes, or for the fuelling of satellites by UK satellites manufacturers.^{[footnote 4]}
		A licence may be granted for the import, acquisition, supply or delivery from Russia of unsymmetrical dimethyl hydrazine (CAS 57-14-7) if it is for use in launchers operated by UK launch service providers, or for the use in launches by the European Space Agency or UK space programmes, or for the fuelling of satellites by UK satellites manufacturers.
		A licence may be granted for the import, acquisition, export, making available, transfer, supply, or delivery of hydrazine (CAS 302-01-2) in concentrations of 70% or more for the tests and flight of ExoMars descent module and for the flight of ExoMars carrier module in the framework of the ExoMars 2020 mission.^{[footnote 5]}
Prohibitions on the provision of technical assistance, brokering services, financial services or funds relating to military goods or technology	Regulations 27 to 29	A licence may be granted for the provision of technical assistance, brokering services, financial services or funds if the technical assistance, brokering services, financial services or funds relate to the execution of a contract concluded before 1 August 2014 or ancillary contracts necessary for the execution of such a contract.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds if the technical assistance, brokering services, financial services or funds are necessary for the maintenance and safety of existing capability within the UK.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds if the technical assistance, brokering services, financial services or funds relate to the import, acquisition, export, supply and delivery, making available and transfer of: Hydrazine (CAS 302-01-2) in concentrations of 70% or more; or Monomethyl hydrazine (CAS 60-34-4) if it is for use in launchers operated by European launch service providers, or for the use in launches by space programmes of the European Space Agency or UK space programmes, or for the fuelling of satellites by UK satellites manufacturers.^{[footnote 6]}
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds if the technical assistance, brokering services financial services or funds relate to unsymmetrical dimethyl hydrazine (CAS 57-14-7) if it is for use in launchers operated by UK launch service providers, or for the use in launches by the European Space Agency or UK space programmes, or for the fuelling of satellites by UK satellites manufacturers.^{[footnote 7]}
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds if the technical assistance, brokering services financial services or funds relate to hydrazine (CAS 302-01-2) in concentrations of 70% or more for the tests and flight of ExoMars descent module and for the flight of ExoMars carrier module in the framework of the ExoMars 2020 mission.^{[footnote 8]}
Prohibitions on enabling or facilitating military activities	Regulation 30	A licence may be granted for the provision of technical assistance, armed personnel, brokering services, financial services or funds which enable or facilitate military activities, if the technical assistance, armed personnel, financial services or funds, or brokering services are necessary for the maintenance and safety of existing capability within the UK.
Prohibitions on the export, making available, transfer, supply, or delivery of dual-use goods or technology	Regulations 22, 24, 25 and 26	A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if the goods or technology relate to the execution of obligations arising from contracts concluded before 1 March 2022 or ancillary contracts necessary for the execution of such contracts, provided that the authorisation is requested before 1 May 2022. If this contract relates to the export, making available, transfer, supply, or delivery of dual-use goods or technology for a military end-use or a military end-user, the licence will only be granted to facilitate the execution of obligations arising of contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such contracts.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if the export, making available, transfer, supply, or delivery of the goods or technology is necessary for the maintenance and safety of dual-use goods or technology within the UK.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if the goods or technology are intended for intergovernmental cooperation in space programmes, provided that this is for non-military use and for a non-military end user.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if necessary in relation to the repair of an aircraft which is not registered in Russia, or owned or operated by a person connected with Russia.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology to enable anything to be done for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health or safety.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology for the delivery of humanitarian assistance activity.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology for medical and pharmaceutical purposes, provided that this is for the benefit of the civilian population.
		A licence may be granted for the export, making available, transfer, supply, or delivery of items for use by the news media, provided that the Secretary of State has reasonable grounds to determine that the dual-use goods or technology will be safely returned to the UK when no longer required and will not be hired, exchanged, sold or otherwise disposed of in Russia.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology where this is necessary for a software update for civilian use.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if the export, making available, transfer, supply, or delivery of dual-use goods or technology is necessary for ensuring cyber security and information security for natural and legal persons, and bodies in Russia, except for its government and undertakings directly or indirectly controlled by its government.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if the export, making available, transfer, supply, or delivery of dual-use goods or technology is necessary for the commissioning, operation, maintenance or repair of civilian telecommunications networks, including the provision of internet services.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if the export, making available, transfer, supply, or delivery of dual-use goods or technology is necessary for maritime safety.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if the dual-use goods or technology are intended for the exclusive use of entities owned, or solely or jointly controlled by, a legal person, entity or body which is incorporated or constituted under UK law.
		A licence may be granted for the export, making available, transfer, supply, or delivery of items if the export, making available, transfer, supply, or delivery of these items is necessary for the official purposes of a diplomatic mission, consular post or international organisation enjoying immunities in the United Kingdom in accordance with international law.
Prohibitions on the provision of technical assistance, brokering services, financial services or funds relating to dual-use goods or technology	Regulations 27 to 29	A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the execution of obligations arising from contracts concluded before 1 March 2022 or ancillary contracts necessary for the execution of such contracts, provided that the authorisation is requested before 1 May 2022. If this contract relates to the technical assistance, brokering services, financial services or funds for a military end-use or a military end-user, the licence will only be granted to facilitate the execution of obligations arising of contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such contracts.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the maintenance and safety of dual-use goods or technology within the UK.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds relate to the maintenance and safety of Russian manufactured dual-use goods or technology within the UK.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for intergovernmental cooperation in space programmes, provided that this is for non-military use and for a non-military end user.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the technical assistance, brokering services, financial services or funds are required to enable activities for the necessary prevention or mitigation of an event likely to have a serious and significant impact on human health or safety.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the technical assistance, brokering services, financial services or funds are required for the delivery of humanitarian assistance activity.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for medical and pharmaceutical purposes, provided that this is for the benefit of the civilian population.
		A licence may be granted for the export, making available, transfer, supply, or delivery of dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary in relation to the repair of an aircraft which is not registered in Russia, or owned or operated by a person connected with Russia.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the news media, and the Secretary of State has reasonable grounds to determine that the dual-use goods or technology will be safely returned to the UK when no longer required and will not be hired, exchanged, sold or otherwise disposed of in Russia.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for software updates for civilian use.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for ensuring cyber security and information security for natural and legal persons, and bodies in Russia, except for its government and undertakings directly or indirectly controlled by its government.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the commissioning, operation, maintenance or repair of civilian telecommunications networks, including the provision of internet services.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for maritime safety.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology intended for the exclusive use of entities owned, or solely or jointly controlled by, a legal person, entity or body which is incorporated or constituted under UK law.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to controlled items if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the official purposes of a diplomatic mission, consular post or international organisation enjoying immunities in the United Kingdom in accordance with international law.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to dual-use goods or technology where the technical assistance, brokering services, financial services or funds are necessary to prevent degradation or allow safe storage of aircraft or vessels located in the UK that are detained or are unable to operate due to UK financial, trade or transport sanctions measures.
Prohibitions on the export, making available, transfer, supply, or delivery of critical-industry goods and technology	Regulations 22, 24, 25 and 26	A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods or technology if the goods or technology relate to the execution of obligations arising from contracts concluded before 1 March 2022 or ancillary contracts necessary for the execution of such contracts, provided that the authorisation is requested before 1 May 2022.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods or technology if the goods or technology are intended for intergovernmental cooperation in space programmes, provided that this is for non-military use and for a non-military end user.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods and technology for humanitarian purposes for the delivery of humanitarian assistance activity.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods and technology for medical and pharmaceutical purposes, provided that this is for the benefit of the civilian population.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods and technology for use by the news media, provided that the Secretary of State has reasonable grounds to determine that the critical-industry goods or technology will be safely returned to the UK when no longer required and will not be hired, exchanged, sold or otherwise disposed of in Russia.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods and technology if the export, making available, transfer, supply, or delivery of critical-industry goods and technology is necessary for ensuring cyber security and information security for natural and legal persons, and bodies in Russia, except for its government and undertakings directly or indirectly controlled by its government.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods and technology if the export, making available, transfer, supply, or delivery of critical-industry goods and technology is necessary for the commissioning, operation, maintenance and repair of civilian communications networks, including the provision of internet services.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods and technology if the export, making available, transfer, supply, or delivery of critical-industry goods and technology is necessary for maritime safety.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods and technology if the critical-industry goods and technology are necessary for the repair of an aircraft which is not registered in Russia, or owned or operated by a person connected with Russia.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods and technology if the critical-industry goods and technology are intended for the exclusive use of entities owned, or solely or jointly controlled by, a legal person, entity or body which is incorporated or constituted under UK law.
		A licence may be granted for the export, making available, transfer, supply, or delivery of critical-industry goods or technology where the restricted goods are: - vessels controlled under 8A992f and technology related to such vessels controlled under 8E992, and; - the vessel is moving from a third country to Russia, or to the United Kingdom or a third country from Russia, or transiting Russian territorial waters, and; - the vessel is moving under its own power, and; - the movement of the vessel is not for the purpose of a transfer of ownership of the vessel or any of its component parts, or a change of the operator of the vessel. A general licence is available under this provision.
Prohibitions on the provision of technical assistance, brokering services, financial services or funds relating to critical-industry goods and technology	Regulations 27 to 29	A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods and technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the execution of obligations arising from contracts concluded before 1 March 2022, or ancillary contracts necessary for the execution of such contracts, provided that the authorisation is requested before 1 May 2022.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods and technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the maintenance and safety of critical-industry goods and technology within the UK.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for intergovernmental cooperation in space programmes, provided that this is for non-military use and for a non-military end user.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the delivery of humanitarian assistance activity.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for medical and pharmaceutical purposes, provided that this is for the benefit of the civilian population.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are required for the necessary prevention or mitigation of an event likely to have a serious and significant impact on human health and safety, including the safety of existing infrastructure, or the environment.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology for use by the news media, provided that the Secretary of State has reasonable grounds to determine that the critical-industry goods or technology will be safely returned to the UK when no longer required and will not be hired, exchanged, sold or otherwise disposed of in Russia.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied the technical assistance, brokering services, financial services or funds are necessary for ensuring cyber security and information security for natural and legal persons, and bodies in Russia, except for its government and undertakings directly or indirectly controlled by its government.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied the technical assistance, brokering services, financial services or funds are necessary for the commissioning, operation, maintenance and repair of civilian communications networks, including the provision of internet services.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied the technical assistance, brokering services, financial services or funds are necessary for maritime safety.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the repair of an aircraft which is not registered in Russia, or owned or operated by a person connected with Russia.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods or technology if the Secretary of State is satisfied the technical assistance, brokering services, financial services or funds are intended for the exclusive use of entities owned, or solely or jointly controlled by, a legal person, entity or body which is incorporated or constituted under UK law.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical-industry goods and technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are related to restricted goods which are: - vessels controlled under 8A992f and technology related to such vessels controlled under 8E992, and; - the vessel is moving from a third country to Russia, or to the United Kingdom or a third country from Russia, or transiting Russian territorial waters, and; - the vessel is moving under its own power, and; - the movement of the vessel is not for the purpose of a transfer of ownership of the vessel or any of its component parts, or a change of the operator of the vessel. A general licence is available under this provision.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical industry goods and technology where the technical assistance, brokering services, financial services or funds are necessary to prevent degradation or allow safe storage of aircraft or vessels located in the UK that are detained or are unable to operate due to UK financial, trade or transport sanctions measures.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to critical industry goods and technology where the technical assistance, brokering services, financial services or funds are necessary for the delivery of humanitarian assistance activity.
Prohibitions on the export, making available, transfer, supply, or delivery of aviation and space goods and technology	Regulations 22, 24, 25 and 26	A licence may be granted for the export, making available, transfer, supply, or delivery of aviation and space goods and technology if the Secretary of State is satisfied that the export, making available, transfer, supply, or delivery is necessary for the execution of obligations arising from contracts concluded before 8 March 2022, or ancillary contracts necessary for the execution of such contracts, provided that the activity is completed before 28 March 2022. This licensing ground will no longer be available for use from 28 March 2022.
Prohibitions on the provision of technical assistance, brokering services, financial services or funds relating to aviation and space goods and technology	Regulations 27 to 29	A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to aviation and space goods and technology if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the execution of obligations arising from contracts concluded before 8 March 2022, or ancillary contracts necessary for the execution of such contracts, provided that the activity is completed before 28 March 2022. This licensing ground will no longer be available for use from 28 March 2022. A general licence is available under this provision for specific insurance and reinsurance activity.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to aviation and space goods and technology where the technical assistance, brokering services, financial services or funds are necessary to prevent degradation or allow safe storage of aircraft located in the UK that are detained or are unable to operate due to UK financial, trade or transport sanctions measures.
Prohibition on the provision of insurance and reinsurance relating to aviation and space goods and technology	Regulation 29A	A licence may be granted for the provision of insurance and reinsurance services related to aviation and space goods and technology if the Secretary of State is satisfied that the insurance and reinsurance services are necessary for the execution of obligations arising from contracts concluded before 8 March 2022, or ancillary contracts necessary for the execution of such contracts, provided that the activity is completed before 28 March 2022. This licensing ground will no longer be available for use from 28 March 2022. A general licence is available under this provision for specific insurance and reinsurance activity.
		A licence may be granted for the provision of insurance and reinsurance services related to aviation and space goods and technology where the insurance or reinsurance services are necessary to prevent degradation or allow safe storage of aircraft or vessels located in the UK that are detained or are unable to operate due to UK financial, trade or transport sanctions measures.
Prohibitions on the export, making available, supply or delivery of energy-related goods	Regulations 40 to 42	A licence will not be granted for the export, making available, supply or delivery of energy-related goods if the Secretary of State has reasonable grounds to determine that the goods or technology are destined for a relevant oil exploration or production project.^{[footnote 9]}
		A licence may be granted for the export, making available, supply or delivery of energy related goods if the export, making available, supply, or delivery of goods relate to the execution of obligations arising under contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such a contract.
		A licence may be granted for the export, making available, supply or delivery of energy related goods if the Secretary of State determines that the goods are necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety of the environment.
Prohibitions on the provision of technical assistance, brokering services, financial services or funds relating to energy-related goods	Regulations 43 to 45	A licence will not be granted for the provision of technical assistance, brokering services, financial services, or funds related to energy-related goods or technology if the Secretary of State has reasonable grounds to determine that the technical assistance, financial services, funds and brokering services relate to energy-related goods or technology destined for a relevant oil exploration or production project. If your activity is controlled by Regulations 43-45 and relates to energy-related goods or technology which are not for use in Russia a general licence is available.
		A licence may be granted for the provision of technical assistance, brokering services, financial services, or funds related to energy-related goods or technology if the technical assistance, brokering services, financial services, or funds relate to the execution of obligations arising under contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such a contract.
		A licence may be granted for the provision of technical assistance, brokering services, financial services, or funds relating to energy-related goods or technology if the Secretary of State determines that the technical assistance, brokering services, financial services, or funds relate to goods or technology necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety of the environment.
Prohibitions on providing energy-related services	Regulation 46	A licence may be granted for the provision of other energy-related services if the services relate to the execution of contracts concluded before 12 September 2014 or ancillary contracts necessary for the execution of such a contract.
Prohibitions on the provision of technical assistance to or for the benefit of specific designated persons, in relation to an aircraft or ship	Regulation 46A	A licence may be granted for the provision of technical assistance to or for the benefit of a designated person where the technical assistance is necessary to prevent degradation or allow safe storage of aircraft or ships located in the UK that are detained or are unable to operate due to UK financial, trade or transport sanctions measures.
Prohibitions on the export, making available, supply, or delivery and making available of infrastructure-related goods to a person connected with, or for use in, non-government controlled Ukrainian territory	Regulations 48 to 50	A licence may be granted for the export, making available, supply, or delivery of infrastructure related goods if the goods are necessary for official purposes of consular missions or international organisations enjoying immunities in accordance with international law located in non-government controlled Ukrainian territory.
		A licence may be granted for the export, making available, supply, or delivery of infrastructure related goods if the goods are related to projects exclusively in support of hospitals, or other public health institutions providing medical services or civilian education establishments located in non-government controlled Ukrainian territory.
		A licence may be granted for the export, making available, supply, or delivery of infrastructure related goods if the goods are appliances or equipment for medical use.
		A licence may be granted for the export, making available, supply, or delivery of infrastructure related goods if the goods are necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety, including the safety of existing infrastructure, or the environment.
		A licence may be granted for the export, making available, supply, or delivery of infrastructure related goods if the goods are necessary for the delivery of humanitarian assistance activity.
Prohibitions on the provision of technical assistance, brokering services, financial services and funds related to infrastructure-related goods to a person connected with, or for use in, non-government controlled Ukrainian territory.	Regulations 51 to 53	A licence may be granted for the provision of technical assistance, brokering services, financial services, or funds relate to infrastructure related goods if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds relate to infrastructure-related goods necessary for official purposes of consular missions or international organisations enjoying immunities in accordance with international law located in non-government controlled Ukrainian territory.
		A licence may be granted for the provision of technical assistance, brokering services, financial services, or funds related to infrastructure related goods if the Secretary of State is satisfied that the technical assistance, brokering services, financial services, or funds relate to infrastructure-related goods related to projects exclusively in support of hospitals, or other public health institutions providing medical services or civilian education establishments located in non-government controlled Ukrainian territory.
		A licence may be granted for the provision of technical assistance, brokering services, financial services, or funds related to infrastructure related goods if the infrastructure-related goods are appliances or equipment for medical use.
		A licence may be granted for the provision of technical assistance, brokering services, financial services, or funds related to infrastructure related goods if the technical assistance, brokering services, financial services or funds relate to infrastructure-related goods necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety, including the safety of existing infrastructure, or the environment.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to the infrastructure related goods if the Secretary of State is satisfied that the technical assistance, brokering services, financial services or funds are necessary for the delivery of humanitarian assistance activity.
Prohibition on providing certain services relating to a relevant infrastructure sector, and tourism, in non-government controlled Ukrainian territory	Regulation 54	A licence may be granted for the provision of services relating to a relevant infrastructure sector in non-government controlled Ukrainian territory if the services are necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety, including the safety of existing infrastructure, or the environment.

Applications for trade sanctions licences can be made through SPIRE. Information on the activities you wish to carry out and any other relevant documentation can be provided in a cover letter and attached to the application. If you have questions on trade sanctions licensing, please contact us via tradesanctions@trade.gov.uk.

When you export goods, you may need to submit an electronic export declaration via the National Export System (NES), part of Her Majesty’s Revenue and Customs’ (HMRC) Customs Handling of Import and Export Freight (CHIEF) system. Guidance is available on how to make an export declaration.

Licence applications for import of goods can be made through the online import licensing system ICMS, managed by DIT’s Import Licensing Branch (ILB). The DIT Import Licensing Branch will, to the extent possible, aim to inform the trader of the application outcome within 30 days. However, in some circumstances, for operational or legal reasons, DIT may need to take longer than the 30 day period. We will inform the applicant if this is the case.

When you import goods, you may need to submit an import declaration through Her Majesty’s Revenue and Customs’ (HMRC) Customs Handling of Import and Export Freight (CHIEF) system. Guidance is available on how to make an import declaration.

3.4 Overlap with strategic export licensing

Military goods and military technology

Please note the export of and trade in military goods and military technology are also controlled under the Export Control Order 2008 and so you may also need a licence which is valid under that legislation. This means that all licence applications relating to military goods and military technology will also need to be considered against the Strategic Export Licensing Criteria. A licence under the Regulations is unlikely to be granted if a licence is refused for the same activity under the Export Control Order 2008.

The way this will work in practice is that we will consider an application for a licence which relates to activities that are licensable under both the Regulations and the Export Control Order 2008 as an application for a licence under both pieces of legislation. This means that only a single licence application is required.

The application will be considered against the relevant licensing criteria. If a licence is granted it will be valid under both the Export Control Order 2008 and the Regulations.

Dual-use goods and technology

Please note that the export of and trade in dual-use goods and technology are also controlled under the Dual-Use Regulation. Authorisations under that Regulation are granted by the Secretary of State for International Trade under licensing powers in the Export Control Order 2008.

This means that all licence applications relating to items which are controlled dual-use goods and technology will also need to be considered against the Strategic Export Licensing Criteria. A licence under the Regulations is unlikely to be granted if an authorisation is refused for the same activity under the Dual-Use Regulation.

As explained above in relation to military goods and technology, only a single licence application will be required in relation to dual-use goods and technology which falls within the scope of both the Regulations and the Dual-Use Regulation. If the application is compatible with both criteria, a licence will be granted which will be valid under the Dual-Use Regulation and the Export Control Order 2008 as well as the Regulations.

Overlap between items falling under Schedule 2C (aviation and space goods and technology) which are also military goods and technology or dual-use goods and technology

Where an item falls within the definition of “aviation and space goods” or “aviation and space technology” list and also within the definitions of either military goods, military technology, dual-use goods or dual-use technology, it is subject to prohibitions under all relevant regulations. If you wish to rely on an exception, there must be a relevant exception available for all relevant prohibitions that it engages.

Similarly, if you wish to apply for a licence, your activity must be compatible with licensing grounds for all relevant prohibitions that it engages. The Export Control Joint Unit will assess your application against all relevant prohibitions and licensing grounds.

Overlap between trade sanctions and financial sanctions

If you import or export goods, you need to consider if financial sanctions apply to you. You may need a licence from OFSI as well as from the Export Control Joint Unit or the Import Licensing Branch.

Transit control

Certain goods transiting the UK are still regarded as being exported when they leave the country and are therefore subject to control. Article 17 of the Export Control Order 2008 includes a transit and transhipment exception meaning that in many situations a licence is not required. This exception does not apply to goods destined for Russia, meaning that a licence is required to transit goods through the UK or to tranship them in the UK with a view to re-exportation to Russia.

3.5 Licensing for transport sanctions

Licences may also be issued for certain transport activities that would otherwise be prohibited by the Regulations. The Department for Transport (DfT) has overall responsibility for transport sanctions licensing. The Secretary of State for Transport is ultimately responsible for decisions to grant or refuse a transport sanctions licence in any individual case.

For some prohibitions there are some specific activities that DfT considers are likely to be consistent with the aims of the sanctions.

These are set out in the table below. If you think that your proposed activity falls within one of these specific descriptions you should make this clear and explain why you believe this to be the case in your application for a licence.

Prohibition description	Prohibition reference	Considerations for licensing
Prohibition on the movement of Russian aircraft	Regulation 57J	A licence may be granted for the overflight of UK airspace, or for the landing in the UK, of a Russian aircraft where it is necessary either: - for the delivery of humanitarian assistance, or; - for the official purposes of a diplomatic mission or consular post in Russia or the UK, or of an international organisation enjoying immunities in the UK in accordance with international law, or; - for testing the aircraft for the purposes of providing technical assistance.

You should not assume that a licence will be granted or engage in any activities prohibited by the sanctions until your licence has been granted.

A licence may be general or be issued to a particular category of person or to a particular person. Licences may contain conditions and they may be of a defined duration or of indefinite duration.

Information on how to apply for a transport sanctions licence is available on GOV.UK.

3.6 Immigration sanctions

If you are subject to immigration sanctions the Home Office may direct, on a case by case basis, that the sanction does not apply in particular circumstances, such as for travel to, or through, the UK for a UN sponsored meeting. You can check how to apply for a UK visa, and find further information about travelling to the UK on GOV.UK.

Question 4

4. Further information

Accepted Answer

Sign up to receive Notices to Exporters and view the Notices to Importers for updates on trade sanctions.

To receive an email alerting you to any changes to the consolidated list of financial sanctions targets, you can subscribe to OFSI’s e-alert.

Presidential Decree Number 32/2019 “Decree of the President of Ukraine: On the the Borders and the List of Districts, Cities, Settlements and Villages, and parts of their territories, temporarily occupied in Donetsk and Luhansk Oblasts” was issued under Article 1 of that Law on 7th February 2019. URL: https://zakon.rada.gov.ua/laws/show/32/2019 (in Ukrainian). ↩
Law of Ukraine of 18th January 2018 Number 2268-VIII “On the Peculiarities of State Policy on Ensuring the State Sovereignty of Ukraine over Temporarily Occupied Territories in Donetsk and Luhansk Oblasts”. Verkhovna Rada of Ukraine Information of 09.03.2018 - 2018, No 10, p. 67. URL: https://zakon.rada.gov.ua/laws/show/2268-19 (in Ukrainian). ↩
“the Goods Classification Table” means the table so named in Annex I in Part Three of the Tariff of the United Kingdom. ↩
The amount of any export of hydrazine shall be calculated in accordance with the launch or launches or the satellites for which it is made and shall not exceed a total quantity of 800 kg for each individual launch or satellite. The amount of any export of monomethyl hydrazine shall be calculated in accordance with the launch or launches or the satellites for which it is made. ↩
The amount of hydrazine destined for the tests and flight of the ExoMars descent module in the framework of the ExoMars 2020 mission, calculated in accordance with the needs of each phase of that mission, is not to exceed a total of 5,000 kg for the entire duration of the mission; the amount of hydrazine destined for the flight of the ExoMars carrier module in the framework of the ExoMars 2020 mission is not to exceed a total of 300 kg. ↩
The amount of hydrazine that can be exported for each individual launch or satellite shall not exceed a total quantity of 800 kg. The amount of any export of monomethyl hydrazine shall be calculated in accordance with the launch or launches or the satellites for which it is made. ↩
The amount of hydrazine that can be exported for each individual launch or satellite shall not exceed a total quantity of 800 kg. The amount of any export of monomethyl hydrazine shall be calculated in accordance with the launch or launches or the satellites for which it is made. ↩
The amount of hydrazine destined for the tests and flight of the ExoMars descent module in the framework of the ExoMars 2020 mission, calculated in accordance with the needs of each phase of that mission, is not to exceed a total of 5,000 kg for the entire duration of the mission; the amount of hydrazine destined for the flight of the ExoMars carrier module in the framework of the ExoMars 2020 mission is not to exceed a total of 300 kg. ↩
“relevant oil exploration or production project” is defined in regulation 46 of the Regulations and includes oil exploration and production in waters deeper than 150 metres and offshore north of the Article circle and oil extraction from shale. ↩

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