Council Regulation (EU) 2022/2474 of 16 December 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 215 thereof,

Having regard to Council Decision (CFSP) 2022/2478 of 16 December 2022 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (1),

Having regard to the joint proposal of the High Representative of the Union for Foreign Affairs and Security Policy and of the European Commission,

Whereas:

(1) On 31 July 2014, the Council adopted Regulation (EU) No 833/2014 (2).

(2) Regulation (EU) No 833/2014 gives effect to certain measures provided for in Council Decision 2014/512/CFSP (3).

(3) On 16 December 2022 the Council adopted Decision (CFSP) 2022/2478 amending Decision 2014/512/CFSP.

(4) It is appropriate to extend the list of restricted items which might contribute to Russia’s military and technological enhancement or the development of its defence and security sector, by adding drone engines, further chemical and biological equipment, riot control agents and electronic components.

(5) Decision (CFSP) 2022/2478 expands the list of entities connected to Russia’s military and industrial complex, on whom tighter export restrictions regarding dual-use goods and technology as well as goods and technology which might contribute to the technological enhancement of Russia’s defence and security sector are imposed by adding 168 new entities. In view of the concrete risk that certain goods or technology are redirected from Crimea or Sevastopol to the Russian Federation, it is also appropriate to include certain Russian-controlled entities based in Crimea or Sevastopol in this list of end-users. This inclusion does not affect the fact that the Union does not recognise and continues to strongly condemn the illegal annexation of Crimea and Sevastopol by the Russian Federation.

(6) Decision (CFSP) 2022/2478 extends the suspension of the broadcasting licences in the Union of Russian media outlets under the permanent control of the Russian leadership, and the prohibition against broadcasting their content.

(7) The Russian Federation has engaged in a systematic, international campaign of media manipulation and distortion of facts in order to enhance its strategy of destabilisation of its neighbouring countries and of the Union and its Member States. In particular, the propaganda has repeatedly and consistently targeted European political parties, especially during election periods, as well as civil society, asylum seekers, Russian ethnic minorities, gender minorities, and the functioning of democratic institutions in the Union and its Member States.

(8) In order to justify and support its aggression against Ukraine, the Russian Federation has engaged in continuous and concerted propaganda actions targeted at civil society in the Union and neighbouring countries, gravely distorting and manipulating facts.

(9) Those propaganda actions have been channelled through a number of media outlets under the permanent direct or indirect control of the leadership of the Russian Federation. Such actions constitute a significant and direct threat to the Union’s public order and security. Those media outlets are essential and instrumental in bringing forward and supporting the aggression against Ukraine, and for the destabilisation of its neighbouring countries.

(10) In view of the gravity of the situation, and in response to Russia’s actions destabilising the situation in Ukraine, it is necessary, consistent with the fundamental rights and freedoms recognised in the Charter of Fundamental Rights, in particular with the right to freedom of expression and information as recognised in Article 11 thereof, to introduce further restrictive measures to suspend the broadcasting activities of such media outlets in the Union, or directed at the Union. The measures should be maintained until the aggression against Ukraine is put to an end, and until the Russian Federation, and its associated media outlets, cease to conduct propaganda actions against the Union and its Member States.

(11) Consistent with the fundamental rights and freedoms recognised in the Charter of Fundamental Rights, in particular with the right to freedom of expression and information, the freedom to conduct a business and the right to property as recognised in Articles 11, 16 and 17 thereof, those measures do not prevent the media outlets and their staff from carrying out activities in the Union other than broadcasting, such as research and interviews. In particular, those measures do not modify the obligation to respect the rights, freedoms and principles referred to in Article 6 of the Treaty on European Union, including in the Charter of Fundamental Rights, and in Member States’ constitutions, within their respective fields of application.

(12) In order to ensure consistency with the process in Decision 2014/512/CFSP for suspending broadcasting licences, the Council should exercise implementing powers to decide, following an examination of the respective cases, whether the restrictive measures are to become applicable, on the date specified in this Regulation, in respect of several entities listed in Annex XV to this Regulation.

(13) Decision (CFSP) 2022/2478 furthers the already existing prohibition targeting new investments in the Russian energy sector by additionally prohibiting new investments in the Russian mining sector, with the exception of mining and quarrying activities involving certain critical raw materials.

(14) It is appropriate to expand the export ban covering goods and technology suited for use in aviation and the space industry to include aircraft engines and their parts. This prohibition as well as the prohibition to land, take off from, or overfly the territory of the Union applies to both manned and unmanned aircrafts. In addition, Decision (CFSP) 2022/2478 introduces a derogation allowing the provision of technical assistance related to the use of goods and technology suited for use in aviation or the space industry, when this is necessary to avoid collision between satellites, or their unintended re-entry into the atmosphere. Moreover, it introduces a possibility for the national competent authorities to grant derogations to allow for certain aviation goods, which are also widely used in the medical field, to be exported for medical, pharmaceutical and humanitarian purposes.

(15) It is also appropriate to extend the list of goods which could contribute to the enhancement of Russian industrial capacities by including such items as generators, toy drones, laptops, hard drives, IT components, night-vision and radio-navigation equipment, cameras and lenses.

(16) Decision (CFSP) 2022/2478 extends for an additional six months the exemption applicable to the imports of methanol originating in or exported from Russia.

(17) Regulation (EU) No 833/2014 contains a prohibition to import crude oil from Russia, whether by pipeline or via maritime transport. Regulation (EU) No 833/2014 also provides for temporary derogations for imports by pipeline, and for seaborne import for Bulgaria. Those derogations were exclusively meant to ensure the security of supply of the Member States, while maintaining a level playing field among them. It is thus appropriate to clarify that, as is the case for the Member States importing Russian crude oil by pipeline, Bulgaria cannot sell petroleum products obtained from Russian crude oil imported on the basis of that derogation to buyers located in other Member States or in third countries. Bunkering or refuelling of a vehicle or aircraft in the Member States which benefit from those derogations does not fall under that prohibition.

(18) In a spirit of solidarity with Ukraine, Decision (CFSP) 2022/2478 nevertheless allows Hungary, Slovakia and Bulgaria to export to Ukraine certain refined petroleum products obtained from Russian crude oil imported on the basis of the derogations in question, including, when necessary, by transiting through other Member States.

(19) Decision (CFSP) 2022/2478 also allows Bulgaria to export to third countries certain refined petroleum products obtained from Russian crude oil imported on the basis of the derogations in question. This is necessary in order to mitigate environmental and safety risks since such products cannot be stored safely in Bulgaria. Annual exports should not exceed the average annual exports for such products over the past five years.

(20) It is appropriate to exclude natural gas condensates produced in liquefied natural gas (LNG) production plants from the restrictions set out in Articles 3m and 3n, in order to ensure the security of the liquefied natural gas supply. In order to avoid circumvention and ensure that restricted natural gas condensate products under Articles 3m and 3n are not purchased, imported or transported into the Union or to third countries, it is appropriate to introduce a reporting obligation for the operators engaged in transactions concerning natural gas condensate from LNG productions plants.

(21) Decision (CFSP) 2022/2478 adds the Russian Regional Development Bank to the list of Russian State-owned or controlled entities that are subject to the transaction ban.

(22) Decision (CFSP) 2022/2478 bans Union nationals from holding any posts on the governing bodies of all Russian State-owned or controlled legal persons, entities or bodies that are established in Russia. It also provides for the possibility for competent authorities to grant an authorisation to their nationals for holding such posts in existing joint ventures or similar legal arrangements as well as EU subsidiaries established in Russia, and when the holding of such a post is necessary for ensuring critical energy supply, or when the legal person, entity or body is involved in the transit through Russia of oil originating in a third country and the holding of such a post is intended for operations which are not otherwise prohibited.

(23) Decision (CFSP) 2022/2478 extends the duration of the exemption from the prohibition to enter into any transactions with certain Russian state-owned entities if such a transaction is strictly necessary for the wind-down of a joint venture or similar legal arrangement. It also introduces the possibility for national competent authorities to authorise transactions, which are necessary for the divestment and withdrawal of those Russian state-owned entities from EU companies.

(24) In order to facilitate divestment from the Russian market by Union operators, Decision (CFSP) 2022/2478 introduces a temporary derogation from the import and export prohibitions contained in Regulation (EU) No 833/2014. To facilitate an expeditious exit from the Russian market, this derogation is temporary and limited in scope, enabling the sale, supply or transfer of such goods, or their import into the Union, until 30 September 2023 and applies only to those goods that were already physically located in Russia at the time when the relevant prohibitions entered into force. Additionally, national authorities should ensure that the prohibited goods remaining in Russia as a result of divestment do not benefit military end-users or have a military-end use.

(25) It is appropriate to align the Member States’ reporting obligation on deposits exceeding EUR 100 000 from legal persons, entities or bodies established in third countries and majority-owned by Russian nationals or natural persons residing in Russia, with the similar obligations that already exist for the other types of deposits.

(26) Furthermore, Decision (CFSP) 2022/2478 extends the existing prohibition on the provision of certain services to the Russian Federation and to legal persons, entities or bodies established in Russia by banning the provision of advertising, market research and public opinion polling services, as well as product testing and technical inspection services. In line with the Central Products Classification as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No 77, CPC prov., 1991, ‘Market research and public opinion polling services’ covers market research services and public opinion polling services. ‘Technical testing and analysis services’ covers composition and purity testing and analysis services, testing and analysis services of physical properties, testing and analysis services of integrated mechanical and electrical systems, technical inspection services, as well as other technical testing and analysis services. The provision of technical assistance related to goods exported to Russia remains allowed, provided that the sale, supply, transfer or export of such goods is not prohibited under this Regulation at the time at which such technical assistance is provided. ‘Advertising services’ covers the sale or leasing services of advertising space or time and the planning, creating and placement services of advertising, as well as other advertising services.

(27) Decision (CFSP) 2022/2478 further clarifies and amends the exemptions to the import ban on steel products that either originate in Russia or have been exported from Russia.

(28) Finally, Decision (CFSP) 2022/2478 makes certain technical corrections in the operative text.

(29) Those measures fall within the scope of the Treaty and, therefore, in particular with a view to ensuring their uniform application in all Member States, regulatory action at the level of the Union is necessary.

(30) Regulation (EU) No 833/2014 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EU) No 833/2014 is amended as follows:

(4) in Article 3ea, paragraph 6 is replaced by the following: ‘6.   The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under paragraphs 5, 5a and 5b within two weeks of the authorisation.’;

(9) in Article 3n, the following paragraphs are added: ‘12.   Natural and legal persons, entities and bodies shall inform within two weeks the competent authority of the Member State where they are resident, located, established or incorporated, of all transactions for the purchase or transfer into third countries of natural gas condensates of subheading CN 2709 00 10 from liquefied natural gas production plants, originating in or exported from Russia. The reporting shall include information on volumes. The Member State concerned shall provide the other Member States and the Commission with the information received under the previous subparagraph.

(10) in Article 5, paragraph 5 is replaced by the following: ‘5.   It shall be prohibited to list and provide services for, as of 12 April 2022, and to admit to trading as of 29 January 2023, on trading venues registered or recognised in the Union, the transferable securities of any legal person, entity or body established in Russia and with over 50 % public ownership.’;

(15) Annex IV is amended in accordance with Annex I to this Regulation;

(16) Annex VII is amended in accordance with Annex II to this Regulation;

(17) Annex IX is amended in accordance with Annex III to this Regulation;

(18) Annex XI is amended in accordance with Annex IV to this Regulation;

(19) Annex XV is amended in accordance with Annex V to this Regulation; Point 19 shall apply in respect of one or several of the entities referred to in Annex V to this Regulation as from 1 February 2023 and provided that the Council, having examined the respective cases, so decides by implementing act.

(20) Annex XVII is amended in accordance with Annex VI to this Regulation;

(21) Annex XIX is amended in accordance with Annex VII to this Regulation;

(22) Annex XXIII is amended in accordance with Annex VIII to this Regulation;

(23) Annex XXV is amended in accordance with Annex IX to this Regulation;

(24) Annex XXX is added in accordance with Annex X to this Regulation;

(25) Annex XXXI is added in accordance with Annex XI to this Regulation;

(26) Annex XXXII is added in accordance with Annex XII to this Regulation.

Article 2

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 16 December 2022.

For the Council The President M. BEK

(1) OJ L 322 I, 16.12.2022.

(2) Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (OJ L 229, 31.7.2014, p. 1).

(3) Council Decision 2014/512/CFSP of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (OJ L 229, 31.7.2014, p. 13).