The Russia (Sanctions) (EU Exit) Regulations 2019

[F1 [F2 PART 1ZA U.K. Divestment etc.

Textual Amendments

F1 Sch. 5 paras. 9A-9T and related Pt. headings inserted (1.3.2022) by The Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022 (S.I. 2022/194), regs. 1(2), 14(e)

F2 Sch. 5 Pt. 1ZA inserted (15.12.2023) by The Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2023 (S.I. 2023/1364), regs. 1(3), 22(22)

Interpretation of Part 1ZA U.K.

9DA.   In this Part—

“designated person”, “frozen account” and “relevant institution” have the respective meanings given in regulation 58(7);

“Government of Russia” has the same meaning as in regulation 6;

“non-UK country” means a country that is not the United Kingdom;

“non-UK credit or financial institution” has the same meaning as in regulation 17A;

“person concerned” means the Government of Russia or, as the case may be, a designated person;

“UK entity” means a person, other than an individual, incorporated or constituted under the law of any part of the United Kingdom.

Divestment U.K.

9DB.— (1) To enable anything to be done by a UK entity to enable that entity to undertake a relevant transfer.

(2) In sub-paragraph (1), a “relevant transfer” means a transfer of funds or economic resources located in Russia and owned, held or controlled by the UK entity, to a person concerned in order to enable that entity to divest itself, either wholly or partially, of those funds or economic resources.

(3) Where sub-paragraph (4) applies, to enable anything to be done by a UK entity in order to allow that entity to acquire from a person concerned an interest in that entity held by that person.

(4) This sub-paragraph applies where—

(a) the sole consideration for that acquisition is a transfer of funds from the UK entity to the person concerned;

(b) such funds are credited to—

(i) a frozen account held by a relevant institution; or

(ii) an account held by a non-UK credit or financial institution in a non-UK country; and

(c) where paragraph (b)(ii) applies, the law of that non-UK country—

(i) contains relevant and appropriate—

(aa) prohibitions corresponding to those in Part 3 of these Regulations; and

(bb) exceptions corresponding to those in Part 7 of these Regulations; and

(ii) where relevant or appropriate, allows for licences to be granted on grounds corresponding to those in this Schedule.

Enabling others to divest themselves of funds or economic resources U.K.

9DC.— (1) To enable anything to be done by a UK entity in order to enable another person (“B”) to undertake a relevant transfer.

(2) In sub-paragraph (1), a “relevant transfer” means a transfer of funds or economic resources located in Russia and owned, held or controlled by B, to a person concerned, in order to enable B to divest itself, either wholly or partially, of those funds or economic resources.

(3) Where sub-paragraph (4) applies, to enable anything to be done by a UK entity in order to enable B to acquire from a person concerned an interest in B held by the person concerned.

(4) This sub-paragraph applies where—

(a) the sole consideration for that acquisition is a transfer of funds from B to the person concerned;

(b) such funds are credited to—

(i) a frozen account held by a relevant institution; or

(ii) an account held by a non-UK credit or financial institution in a non-UK country; and

(c) where paragraph (b)(ii) applies, the law of that non-UK country—

(i) contains relevant and appropriate—

(aa) prohibitions corresponding to those in Part 3 of these Regulations; and

(bb) exceptions corresponding to those in Part 7 of these Regulations; and

(ii) where relevant or appropriate, allows for licences to be granted on grounds corresponding to those in this Schedule.]]