Council Regulation (EU) 2023/1214 of 23 June 2023 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) 2023/1217 of 23 June 2023 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 from the High Representative of the Union for Foreign Affairs and Security Policy and the European Commission,

Whereas:

(1) On 31 July 2014, the Council adopted Regulation (EU) No 833/2014 (2), concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine.

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

(3) On 23 June 2023, the Council adopted Decision (CFSP) 2023/1217, amending Decision 2014/512/CFSP.

(4) Activities whose object or effect is to circumvent the prohibitions laid down in Regulation (EU) No 833/2014 undermine the purpose and effectiveness of the Union’s restrictive measures.

(5) In order to minimise the risk of circumvention of the restrictive measures, Decision (CFSP) 2023/1217 prohibits the transit via the territory of Russia of goods and technology which might contribute to Russia’s military and technological enhancement or to the development of its defence and security sector, goods and technology suited for use in aviation or space industry and jet fuel and fuel additives, exported from the Union.

(6) The Union and third countries, as members of the international community, defend the principles of international law enshrined in the Charter of the United Nations and uphold the territorial integrity, sovereignty and independence of Ukraine.

(7) The Union recognises the efforts made by national authorities in many third countries to stem the flow of goods, technology and services that are covered by the restrictive measures adopted by the Union in response to Russia’s war of aggression against Ukraine. The Union should further support third countries in that endeavour with all available means.

(8) In order to address the circumvention of the Union’s restrictive measures through third country jurisdictions, the Union should rapidly strengthen bilateral and multilateral cooperation through diplomatic engagement with, and the provision of increased technical assistance to, the third countries in question. In order to develop, together with Member States, a fully coordinated approach to that effect, the Commission will brief the Council on a regular basis.

(9) Further action should be taken rapidly in cases where the Union’s efforts in the framework of bilateral or multilateral cooperation do not yield the intended result of preventing circumvention of the restrictive measures adopted by the Union in response to Russia’s war of aggression against Ukraine by persons or entities in third countries. Such action should be targeted, proportionate and solely aimed at depriving Russia of the resources which allow it to pursue its war of aggression against Ukraine.

(10) The Union should adopt the appropriate individual measures addressing the involvement of third-country operators in facilitating circumvention. Such measures may include individual designations under Council Regulation (EU) No 269/2014 (4) or other measures under Regulation (EU) No 833/2014, such as adding entities to Annex IV to Regulation (EU) No 833/2014, including on the basis of information and suggestions received from Member States.

(11) The Union will re-engage in a constructive dialogue with the third country in question following the adoption of such individual measures, with a view to ensuring that remedial measures are put in place to deter other operators from engaging in similar conduct. The Council will be informed about that re-engagement and its outcome.

(12) Where, following the adoption of individual measures and further engagement with the third country, it is manifest, given the volume, type or systemic nature of the ongoing circumvention, that those steps are insufficient or inadequate to prevent such circumvention in or via the third country concerned, the Union should be able to take further measures.

(13) To that effect, Decision (CSFP) 2023/1217 has introduced the possibility to take exceptional, last-resort measures restricting the sale, supply, transfer or export of sensitive dual-use goods and technology, or goods and technology that might contribute to the enhancement of Russia’s military, technological or industrial capacities or to the development of Russia’s defence and security sector, in a way that strengthens its ability to wage war, and whose export to Russia is prohibited under Regulation (EU) No 833/2014 to third countries whose jurisdiction is demonstrated to be at a continuing and particularly high risk of being used for circumvention.

(14) Before a proposal is submitted to the Council to proceed to those last-resort measures, the High Representative of the Union for Foreign Affairs and Security Policy and the Commission will brief the Council on the technical details, on the outreach actions taken and on enforcement measures.

(15) Decisions to include a third country and targeted goods or technology in the scope of that measure should be based on the inclusion by the Council, acting unanimously, of the relevant country and goods or technology in Annex XIV to Decision 2014/512/CFSP.

(16) When deciding whether to include targeted goods and technology and the third countries concerned by that last-resort measure, based on that proposal, the Council should take into account a thorough technical analysis by the Commission on the circumvention issues in question, including available trade data demonstrating that the alternative measures taken have been ineffective, as well as information about the efforts carried out by the Union to address the matter with the third country in question, and a clear indication that such efforts were not successful.

(17) Before including a third country on the list of countries concerned by that measure, the Union should inform and actively seek the views of the government of that third country on the basis of the preliminary findings set out in the technical analysis by the Commission and the Union’s intended remedial action. The Council will be informed of all steps of the engagement and of the outcome. The Council will only adopt such a decision after the final outreach to that third country has been concluded.

(18) The Council should review the content of Annex XXXIII to Regulation (EU) No 833/2014 at regular intervals, on the basis of thorough technical information by the Commission. Such review needs to take into account the objectives of the measure and the result of the continuous engagement with the third countries concerned, including measures proposed by the third countries on how to address circumvention.

(19) Decision (CFSP) 2023/1217 adds 87 new entities to the list of legal persons, entities and bodies set out in Annex IV to Decision 2014/512/CFSP, namely the list of entities directly supporting Russia’s military and industrial complex in its war of aggression against Ukraine, on which 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. In particular, taking into account the direct connection between Iranian manufacturers of military Unmanned Aerial Vehicles and Russia’s military and industrial complex, four additional entities in third countries involved in the manufacturing of Unmanned Aerial Vehicles and their provision to Russia should be added to that list. In addition, in view of the key enabling role of electronic components for use by Russia’s military and industrial complex in supporting the war of aggression against Ukraine, it is also appropriate to include on that list certain other entities in third countries involved in the circumvention of trade restrictions as well as certain Russian entities involved in the development, production and supply of electronic components for Russia’s military and industrial complex.

(20) Decision (CFSP) 2023/1217 expands the list of items which contribute to Russia’s military and technological enhancement or to the development of its defence and security sector by adding items which have been used by Russia for its war of aggression against Ukraine and items which contribute to the development or production of its military systems, including electronic components, semiconductor materials, manufacturing and testing equipment for electronic integrated circuits and printed circuit boards, precursors to energetic materials and precursors to chemical weapons, optical components, navigational instruments, metals used in the defence sector and marine equipment. Decision (CFSP) 2023/1217 also extends the list of restricted firearms, their parts, essential components and ammunition, and adds other types of arms.

(21) Decision (CFSP) 2023/1217 imposes further restrictions on exports of goods which could contribute to the enhancement of Russian industrial capacities.

(22) Decision (CFSP) 2023/1217 prohibits the sale, license or transfer in any other way of intellectual property rights or trade secrets, as well as the granting of rights to access or re-use any material or information protected by means of intellectual property rights or constituting trade secrets, related to the goods and technology whose sale, supply, transfer or export, to a person, entity or body in Russia or for use in Russia is prohibited.

(23) Decision (CFSP) 2023/1217 also extends the suspension of the broadcasting licences in the Union of five Russian media outlets under the permanent control of the Russian leadership, and the prohibition against broadcasting their content.

(24) Russia 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.

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

(26) 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 war of aggression against Ukraine, and for the destabilisation of its neighbouring countries.

(27) 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 of the European Union, 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 war of aggression against Ukraine is put to an end, and until Russia, and its associated media outlets, cease to conduct propaganda actions against the Union and its Member States.

(28) Consistent with the fundamental rights and freedoms recognised in the Charter of Fundamental Rights of the European Union, 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, set out in the Charter of Fundamental Rights of the European Union, and in Member States’ constitutions, within their respective fields of application.

(29) In order to ensure consistency with the process provided for 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 Regulation (EU) No 833/2014 in respect of several entities listed in Annex XV to Regulation (EU) No 833/2014.

(30) Decision (CFSP) 2023/1217 extends the prohibition on the transport of goods by road in the Union by trailers and semi-trailers registered in Russia, including when hauled by trucks registered outside of Russia.

(31) Attempts to circumvent Union restrictive measures have resulted in a sharp increase of deceptive practices by vessels transporting Russian crude oil and petroleum products. Consequently, Decision (CFSP) 2023/1217 prohibits access to ports and locks in the territory of the Union by vessels engaged in ship-to-ship transfers where the competent authorities have reasonable cause to suspect that a vessel is in breach of the ban on importing seaborne Russian crude oil and petroleum products into the Union or is transporting Russian crude oil or petroleum products purchased above the price cap agreed by the Price Cap Coalition. That prohibition applies to all vessels, irrespective of their flag of registration, and to any ship-to-ship transfers carried out at any point during the voyage to a Member State’s ports or locks. In any event, vessels will be prohibited from accessing ports and locks in the territory of the Union if they do not notify the competent authority at least 48 hours in advance about a ship-to-ship transfer occurring within specific geographical areas. In addition, that prohibition will further reinforce the measures adopted by Member States to protect their coasts from potential environmental accidents caused by such ship-to-ship transfers.

(32) Decision (CFSP) 2023/1217 also prohibits access to ports and locks in the territory of the Union by vessels which competent authorities have reasonable cause to suspect of illegally interfering with, switching off or otherwise disabling their shipborne automatic identification systems (AIS) when transporting Russian crude oil and petroleum products in breach of SOLAS Regulation V/19, point 2.4. That prohibition does not apply in circumstances where the shipborne AIS can be legitimately turned off in accordance with international agreements, rules or standards that provide for the protection of navigational information, such as navigation through high-security-risk waters. That prohibition also applies to all vessels, irrespective of their flag of registration, and for any illegal interference with the navigation system at any point during the voyage to a Member State’s ports or locks.

(33) The assessment by the competent authorities in the context of those port access prohibitions should be made on the basis of a risk analysis allowing the competent authority to evaluate whether there are sufficient factual circumstances to suspect a breach. For instance, that risk analysis should take into account whether vessels have complied with any prenotification requirements of ship-to-ship transfers and other relevant legal obligations or have notified the transport of dangerous goods or polluting goods, namely crude oil and petroleum products (5). The Commission should also publish notices of behaviour at risk of maritime sanctions in order to support the competent authorities’ risk analysis including by making use of the appropriate information technology tools.

(34) The Commission, with the assistance of the European Maritime Safety Agency (EMSA), should support the competent authorities through, inter alia, the monitoring and notification of suspicious ship-to-ship transfers and incidents of illegally interfering with, switching off or otherwise disabling of the shipborne AIS, and facilitating the exchange of information based on the Union Maritime Information and Exchange System (‘SafeSeaNet’), which enables the receipt, storage, retrieval and exchange of information for the purpose of maritime safety, port and maritime security, marine environment protection and the efficiency of maritime traffic and maritime transport. National competent authorities within the meaning of Commission Directive 2014/100/EU (6) should provide their port authorities, if different, with access to that system without delay. Using SafeSeaNet, the Commission, with the assistance of EMSA, should support national competent authorities to monitor any vessels of interest, in particular those navigating within the 200 nautical miles limit from Member States’ coastlines, with all means available.

(35) In order to mitigate forum shopping, competent authorities in a Member State which deny access to a vessel should immediately exchange information on such denial with the other competent authorities of the Member States via the existing platforms at their disposal. The Commission should work closely with EMSA to immediately facilitate any technical adjustments to SafeSeaNet based on the competent authorities’ notifications.

(36) Prohibitions relating to port access apply to any vessel, whether it is moored at a port or at anchorage within the jurisdiction of a port of a Member State. In the case of the Gulf of Finland, those prohibitions relate to any vessel, whether it is moored at a port or at anchorage that is located in the territorial waters or internal waters of a Member State.

(37) Appropriate exemptions and derogations are provided for to allow such vessels access to ports and locks in the territory of the Union for maritime safety, including environmental concerns, for saving life at sea and for humanitarian purposes.

(38) Council Decision (CFSP) 2022/884 (7) and Council Regulation (EU) 2022/879 (8) provide that Member States are to take all necessary measures to obtain supplies which are alternative to imports by pipeline of crude oil from Russia, so that those imports are made subject to the prohibitions as soon as possible. In line with this objective, the temporary derogation granted to Germany and Poland for the supply of crude oil by pipeline from Russia through the northern section of the Druzhba oil pipeline should end. The import of oil which originates in Kazakhstan or another third country and is transiting through Russia via the Druzhba oil pipeline is not prohibited.

(39) The price cap mechanism provides that specific projects that are essential for the energy security of certain third countries may be exempted from the price cap. The exemption provided for in relation to the Sakhalin-2 (Сахалин-2) Project, located in Russia, should be extended until 31 March 2024 to ensure Japan’s energy security needs.

(40) In order not to undermine critical energy supplies which are not prohibited from being imported into the Union from third countries, it is appropriate to guarantee the adequate maintenance and operation of the Caspian Pipeline Consortium (CPC) infrastructures, which enable the purchase, import or transfer of goods falling under CN 2709 00 originating in Kazakhstan and which are only being loaded in, departing from or transiting through Russia. Decision (CFSP) 2023/1217 introduced derogations from the prohibitions on the sale, supply, transfer or export directly or indirectly to any natural or legal person, entity or body in Russia or for use in Russia of certain goods or technology, on the provision of related financing or financial assistance, technical assistance, brokering services or other services, or on the provision of auditing services, engineering services, legal advisory services, technical testing and analysis services which are strictly necessary for that purpose, subject to strict conditions to avoid the risk of circumvention.

(41) To avoid circumvention of the prohibition on providing transferable securities to persons in Russia, Decision (CFSP) 2023/1217 extended that prohibition to financial instruments denominated in any currency.

(42) Decision (CFSP) 2023/1217 also introduced a derogation from the prohibition to provide certain services to Russian entities required for the setting-up, certification or evaluation of a firewall removing the control exercised by a listed person over the assets of a non-listed Union entity which the listed person owns or controls, and ensuring that no benefit accrues to the latter, thus allowing that entity to continue its business operations.

(43) Decision (CFSP) 2023/1217 further clarifies the evidence required for importation of iron and steel products processed in a third country incorporating iron and steel products originating in Russia.

(44) Decision (CFSP) 2023/1217 introduced a derogation from the prohibition on purchasing, importing or transferring certain items which generate significant revenues for Russia and which are necessary for the operation, maintenance or repair of Budapest metro line 3 cars.

(45) Decision (CFSP) 2023/1217 introduced clarifications regarding the competent authorities which receive notifications of non-scheduled flights between Russia and the Union.

(46) Decision (CFSP) 2023/1217 extended the deadline for the application of a temporary derogation from the prohibition on providing certain services, with the aim of further facilitating divestment from the Russian market by Union operators. In order to expedite the divestment of Russian operators from the Union market, Decision (CFSP) 2023/1217 introduces a temporary derogation from the prohibition on providing legal advisory services to legal persons, entities or bodies established in Russia. The competent authorities of the Member States may authorise the provision, until 31 March 2024, of legal services which are mandatory, under the national legislation of the Member State, for such divestments to be completed.

(47) In order to ensure full and uniform implementation of the restrictive measures, it is appropriate for Member States to inform the other Member States and the Commission of any authorisation denied under Regulation (EU) No 833/2014, and to share information on requests for authorisation that they intend to grant where a denial has already been notified by another Member State, so as to avoid forum shopping.

(48) It is also appropriate to enhance the exchange of information on the application and enforcement of export restrictions on sensitive items that may be used to support Russia’s war of aggression against Ukraine, such as dual-use goods and goods listed in Annex VII to Regulation (EU) No 833/2014, in order to counter the risk of circumvention by persons or entities involved in the procurement of prohibited Union goods for use in Russia, or the provision of prohibited services, in breach of Regulation (EU) No 833/2014.

(49) It is appropriate to further clarify the provisions on exchange of information between the authorities of a Member State and with the authorities of other Member States and the Commission.

(50) Decision (CFSP) 2023/1217 extends the list of partner countries which are applying a set of export control measures substantially equivalent to those set out in Regulation (EU) No 833/2014.

(51) Finally, Decision (CFSP) 2023/1217 makes certain technical corrections in the operative text and in the Annexes, including by deleting references to transitional periods which have expired, as well as reorganising the structure of certain Annexes to Regulation (EU) No 833/2014. As a consequence of the latter, the prohibition concerning coal imports is covered by Article 3i and Annex XXI of Regulation (EU) No 833/2014; therefore Article 3j and Annex XXII to Regulation (EU) No 833/2014 have become redundant and are deleted. The deletion of references to transition periods which have already expired is not intended to have any legal effects on past or ongoing contracts or on the applicability of those transition periods.

(52) These measures fall within the scope of the Treaty on the Functioning of the European Union 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.

(53) 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 2d, paragraph 1 is replaced by the following: ‘1.   The competent authorities shall exchange information on the application of Articles 2, 2a and 2b with the other Member States and the Commission, including on any authorisation granted or denied and, in the event of suspected forum shopping or other cases as appropriate, on requests for authorisation received. The competent authorities shall exchange information on the enforcement of Articles 2, 2a and 2b with the other Member States and the Commission, including on related infringements and penalties, as well as best practices of national enforcement authorities and the detection and prosecution of unauthorised exports. The exchange of information shall be carried out using the electronic system provided pursuant to Article 23(6) of Regulation (EU) 2021/821.’

(8) in Article 3d, paragraph 5 is replaced by the following: ‘5.   Aircraft operators of non-scheduled flights between Russia and the Union, operated directly or via a third country, shall notify prior to their operation, and at least 48 hours in advance, all relevant information concerning the flight to the competent authorities of the Members State of departure or destination.’

(9) in Article 3ea(5), point (e) is deleted;

(10) the following Articles are inserted: ‘Article 3eb

Article 3ec

(*2)  Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC (OJ L 208, 5.8.2002, p. 10).’;"

(15) Article 3j is deleted;

(18) in Article 3m, the following paragraph is inserted: ‘3a.   The exemption in paragraph 3, point (d), shall stop applying to Germany and Poland on 23 June 2023.’

(20) in Article 5aa(3), point (c) is deleted;

(21) in Article 5f, paragraph 1 is replaced by the following: ‘1.   It shall be prohibited to sell transferable securities denominated in any official currency of a Member State issued after 12 April 2022, or denominated in any other currency issued after 6 August 2023, or units in collective investment undertakings providing exposure to such securities, to any Russian national or natural person residing in Russia or any legal person, entity or body established in Russia.’

(27) in Article 12a, paragraphs 2 and 3 are replaced by the following: ‘2.   For the purposes of this Regulation, the Commission is designated as “controller” within the meaning of Article 3(8) of Regulation (EU) 2018/1725 in relation to the processing activities necessary to accomplish the tasks referred to in paragraph 1.

(4)  Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1)." (5)  Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73).’;"

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

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

(32) Annex VIII is amended in accordance with Annex III to this Regulation.

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

(34) Annex XVII is amended in accordance with Annex V to this Regulation;

(35) Annex XVIII is amended in accordance with Annex VI to this Regulation;

(36) Annex XXI is amended in accordance with Annex VII to this Regulation;

(37) Annex XXII is deleted;

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

(39) Annex XXIX is amended in accordance with Annex IX to this Regulation;

(40) Annex XXXIII is added in accordance with Annex X to this Regulation;

(41) Annex XXXV is added in accordance with Annex XI to this Regulation.

Article 2

This Regulation shall enter into force on the day following that of 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, 23 June 2023.

For the Council The President J. ROSWALL

(1) See page 451 of this Official Journal.

(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).

(4) 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).

(5) Annex I of the International Convention for the Prevention of Pollution from Ships (MARPOL), Regulation 42; Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC (OJ L 208, 5.8.2002, p. 10).

(6) Commission Directive 2014/100/EU of 28 October 2014 amending Directive 2002/59/EC of the European Parliament and of the Council establishing a Community vessel traffic monitoring and information system (OJ L 308, 29.10.2014, p. 82).

(7) Council Decision (CFSP) 2022/884 of 3 June 2022 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (OJ L 153, 3.6.2022, p. 128).

(8) Council Regulation (EU) 2022/879 of 3 June 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (OJ L 153, 3.6.2022, p. 53).