In legislative developments that took place simultaneously on Monday, 28 April, 2014 both the European Union and United States acted to expand the list of persons subject to economic sanctions.
Expansion of EU sanctions, relevant to Cyprus, BVI and Cayman
Council Regulation (EU) No 269/2014 (Regulation 269), imposing sanctions on those perceived to have undermined Ukraine’s territorial integrity, was amended as of 28 April by Council Implementing Regulation 433/2014 to expand the list of persons subject to targeted sanctions. Fifteen additional individuals have been added, they are: Dmitry Nikolayevich Kozak, Oleg Yevgenyvich Balaventsev, Oleg Grenrikhovich Savelyev, Sergei Ivanovich Menyailo, Olga Fedrovna Kovatidi, Ludmila Ivanova Shvetsova, Sergi Ivanova Shvetsova, Sergi Ivanovich Neverov, Igor Dmitrievich Sergun, Valery Vasilevich Gerasimov, German Prokopiv, Valeriy Bolotov, Andriy Purgin, Denys Pushlyn, Tsyplakov Sergey Gennadevich, Igor Strelkov (Ihor Strielkov).
As relevant to the BVI and Cayman Islands
Concurrently on 28 April the United Kingdom (UK) Privy Council implemented two new Orders in Council which apply directly to the Overseas Territories including the BVI and the Cayman Islands: The Ukraine (Sanctions) (Overseas Territories) (No. 2) Order 2014 and The Ukraine (Sanctions) (Overseas Territories) (No. 3) Order 2014. Both of these pieces of legislation came into effect on 30 April 2014.
The Ukraine (Sanctions) (Overseas Territories) (No. 2) Order 2014 revokes the earlier Ukraine (Sanctions) (Overseas Territories) Order issued on 5 March 2014. As a result of the replacement the sanctions legislation in the Overseas Territories now expressly cross-refers to relevant EU sanctions legislation for the Ukraine, i.e. Council Regulation (EU) No 208/2014, as updated from time to time. This is especially important so that updates and changes to the lists of designated persons made by the EU authorities are implemented immediately in the Overseas Territories.
The Ukraine (Sanctions) (Overseas Territories) (No. 3) Order 2014 fully implements Regulation 269 as adopted by the Council of the European Union on 17 March 2014, as well as implementing updates.Order No. 3 brings the Overseas Territories’ law into line with current UK and EU law.
Expansion of US sanctions, potentially relevant to US dollar transactions anywhere in the world
The United States Department of the Treasury has added new individual and corporate names to The Office of Foreign Assets Control list. They are: Oleg Evgenyevich Belavencev, Sergei Chemezov, Dmitry Kozak, Evgeniy Alekseyevich Murov, Aleksei Konstantinovich Pushkov, Igor Sechin, Vyacheslav Volodin, Aquanika, Avia Group LLC, Avia Group Nord LLC, CJSC Zest, Investcapitalbank, JSB Sobinbank, Sakhatrans LLC, SMP Bank, Stroygazmotazh, Stroytransgaz Group, Stroytransgaz Holding, Stroytransgaz LLC, Stroytransgaz OJSC, Stroytransgaz-M LLC, The Limited Liability Company Investment Company Abros, Transoil, Volga Group.
Financial institutions, service providers and affected individuals and companies are advised to seek appropriate legal and professional advice to mitigate risks which may arise as a result of the increasing scope of sanctions against persons in Russia and the Ukraine.
For more information about the general impact of sanctions in Ukraine and Russia under European Union (EU) law as relevant to Cyprus, the British Virgin Islands and the Cayman Islands please see our earlier guide.