Council Regulation (EU) 2023/426 of 25 February 2023 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of 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 2014/145/CFSP of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of 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) Council Regulation (EU) No 269/2014 (2) gives effect to restrictive measures provided for in Decision 2014/145/CFSP.

(2) On 25 February 2023, the Council adopted Decision (CFSP) 2023/432 (3), amending Decision 2014/145/CFSP. Decision (CFSP) 2023/432 extended to certain newly-listed banks derogations from the asset freeze and from the prohibition on making available funds and economic resources that were applicable to previously-listed banks, and to allow the processing of payments by the Jewish Claims Conference through one of them. Decision (CFSP) 2023/432 also introduced a specific and temporary derogation allowing the disposal or the transfer of securities by an entity established in the Union currently or previously controlled by a specific listed entity. Decision (CFSP) 2023/432 furthermore introduced a derogation allowing for the termination of operations, contracts or other agreements with a listed entity, and extended by three months the deadline for the derogation to allow the sale and transfer of proprietary rights in a legal person, entity or body established in the Union owned by a listed natural or legal person, entity or body.

(3) It is appropriate to require that natural and legal persons, entities and bodies supply to the national competent authorities detailed information on funds and economic resources which have been frozen or should have been treated as frozen, as well as information on funds and economic resources belonging to, owned, held or controlled by listed natural or legal persons, entities or bodies which were subject to any move, transfer, alteration, use, access, or dealing shortly before the listing. It is also appropriate to require that central securities depositories, due to their systemic importance for the functioning of securities markets, provide the relevant information to the Member State concerned and simultaneously to the Commission. The obligation to report is ancillary to the effective application of the asset freeze provisions, and is without prejudice to the monetary functions and the principle of independence of the European Central Bank and of the national central banks.

(4) It is also appropriate to specify the type of information to be provided to national competent authorities, which authorities should then transmit that information to the Commission, with specific adaptations in the case of criminal proceedings. In order to allow time to adapt, it is appropriate to provide for deferred application of the more detailed reporting requirements. It should also be clarified that Member States and the relevant natural and legal persons, entities and bodies are required to cooperate with the Commission in any verification of such information, and that the Commission should be able to request any additional information, while informing the Member State concerned of such request.

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

(6) Regulation (EU) No 269/2014 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EU) No 269/2014 is amended as follows:

(3) in point (a) of Article 6b(3), the date ‘28 February 2023’ is replaced by the date ‘31 May 2023’;

(4) in paragraph 1 of Article 6e, the reference to ‘entry numbers 53, 54, 55, 79, 80, 81, 82, 108, 126 and 127 in Annex I’ is replaced by a reference to ‘entry numbers 53, 54, 55, 79, 80, 81, 82, 108, 126, 127, 198, 199 and 200 under the heading ‘Entities’ in Annex I’;

Article 2

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

Article 1 , point (5), shall apply from 26 April 2023.

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

Done at Brussels, 25 February 2023.

For the Council The President J. ROSWALL

(1) OJ L 78, 17.3.2014, p. 16.

(2) Council Regulation (EU) No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ L 78, 17.3.2014, p. 6).

(3) Council Decision (CFSP) 2023/432 of 25 February 2023 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (See page 437 of this Official Journal).