New sanctions against Russian Federation

01.08.2014

In response to the annexation of Crimea Europe imposed new sanctions, which come into force on August 1, 2014 (Council Regulation of 31 July 2014 No. 833/2014).

Provisions of the Regulation impose restrictions in the following spheres:

- Sale, supply, transfer or export of all goods and dual-use technologies, in other words, those that are available for military purposes (listed in Annex I to the Regulation);

- Sale, supply, transfer or export of oil and gas equipment without the permission of the competent authorities;

- Provision of military support, which includes technical and financial assistance;

- A ban on the purchase, sale or other investment activities in respect of securities that can be passed from one participant of a market to another, and market instruments, the issue of which will be carried out after August 1, 2014 by the following Russian banks: Sberbank, VTB Bank, Gazprombank, Vnesheconombank and Rosselkhozbank.

Based on: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_229_R_0001#ntr6-L_2014229EN.01000101-E0006

Expert’s opinion

Sanctions hurt importers.

Multimillion equipment supply contracts with Germany are aborted. Business carries a huge loss right now.

I feel especially sorry for Crimean businessmen. Most likely, it will be difficult to open a bank account if a businessman or his business is located in the Crimea.

Meanwhile residents of the Crimea, which accounts have been already opened, should urgently consider some other variants for withdrawal. It can not be ruled out that the accounts will be blocked due to sanctions.

Yaroslav Lomakin ( Managing Partner, Honest&Bright)