Council Regulation (EU) 2024/1745 of 24 June 2024 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) 2024/1744 of 24 June 2024 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).

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

(3) On 24 June 2024 the Council adopted Decision (CFSP) 2024/1744, which amends Decision 2014/512/CFSP.

(4) Decision (CFSP) 2024/1744 amends the prohibition to land in, take off from or overfly the territory of the Union so that it also applies to any aircraft which is used for a non-scheduled flight and with regard to which a Russian natural or legal person, entity or body is in a position to effectively determine the place or time of its take-off or landing, such as for example to fulfil the request of Russian natural persons to be transported to specific holiday destinations or the request of Russian legal persons to transport their employees to business meetings in the Union or their clients to tourist destinations. That amendment is aimed at avoiding circumvention practices of the prohibition to land in, take off or overfly the territory of the Union and at further pursuing the objective of indirectly exerting maximum pressure on the Russian Government in order to end its actions and policies destabilising Ukraine and the military aggression against it. The prohibition does not apply to an aircraft which a Russian person merely pilots without being in a position to effectively determine the place or time for its take-off or landing, such as in the case of pilots employed by non-Russian air carriers. Decision (CFSP) 2024/1744 also amends the same prohibition to introduce an exemption for certain aircraft when used for private, non-corporate flights carried out within Union territory and airspace for recreational or training purposes.

(5) With the aim of having a uniform set of rules across the Union and of combating circumvention of the flight ban, Decision (CFSP) 2024/1744 also introduces an obligation for operators to provide, for non-scheduled flights, upon request of the competent authorities of the Member State of departure, destination or overflying, information needed for the purpose of verifying compliance with the flight ban, including information about ownership of the aircraft and, where reasonable grounds to suspect circumvention of the flight ban exist, about passengers. Such information should be provided within a deadline set by the competent authorities of the Member State or Member States concerned.

(6) That obligation fully respects fundamental rights, in particular the right of respect for private life and the right to the protection of personal data, in accordance with the Charter of Fundamental Rights of the European Union (the ‘Charter’). In particular, any processing of personal data should remain limited to what is necessary for and proportionate to achieving the objectives of Regulation (EU) No 833/2014. For the purposes of the application of the relevant provisions of Regulation (EU) No 833/2014, the notion of non-scheduled flights should be interpreted in accordance with the definition of ‘scheduled air service’ set out in Regulation (EC) No 1008/2008 of the European Parliament and of the Council (4).

(7) In order to minimise the risk of circumvention, Decision (CFSP) 2024/1744 amends the prohibition on the transport of goods by road within the territory of the Union, including in transit. Union operators which are owned for 25 % or more by a Russian natural or legal person should be prohibited from becoming a road transport undertaking or from transporting goods by road in the Union, including in transit. The prohibition does not apply to road transport undertakings owned by dual nationals or Russian nationals having a temporary or permanent residence permit in a Member State. Road transport undertakings should disclose their ownership structure to the national competent authorities, upon their request.

(8) Given that there are considerable stocks of diamonds held outside Russia which no longer provide revenue to Russia, but which may need to be exported for processing or imported after processing, Decision (CFSP) 2024/1744 clarifies that rough diamonds imported from Russia prior to 1 January 2024 and polished diamonds imported from Russia or manufactured before 1 March 2024 or 1 September 2024, depending upon the weight of the diamond, are not covered by the diamond ban. Decision (CFSP) 2024/1744 also amends the ban on Russian diamonds in order to enable the temporary import or export of jewellery for repairs, auctions and trade fairs. It also amends the scope of application and the date of entry into force of the requirement to provide traceability-based evidence.

(9) The market for jewellery incorporating diamonds is global and closely interconnected. Restrictive measures concerning such jewellery are more effective and less likely to be circumvented when they are imposed in alignment with the Union’s main partners, such as the G7. Consequently, Decision (CFSP) 2024/1744 provides that the indirect import ban on Russian diamonds processed in third countries other than Russia, is temporarily not to apply to jewellery incorporating such diamonds until the Council decides otherwise in view of action taken within the G7 to pursue that measure.

(10) Russia derives significant revenues from the sale and transport of liquified natural gas (LNG). Decision (CFSP) 2024/1744 prohibits reloading services in the territory of the Union for the purposes of transshipment operations where such services are used to transship Russian LNG, except in the case of such transshipments to Member States. That prohibition covers both ship-to-ship transfers and ship-to-shore transfers and re-loading operations. Ancillary services related to such transshipments are also banned. The prohibition does not affect imports into the Union or the security of supply of Member States. The Commission should monitor and report to the Council LNG developments linked to the prohibition and propose mitigating measures in the event of important developments related to it.

(11) Decision (CFSP) 2024/1744 prohibits new investment and the provisions of goods, technology and services for the completion of LNG projects such as Arctic LNG 2 and Murmansk LNG. That should not affect the purchase and import of LNG from Russian terminals and financial services provided to such LNG projects. Such a measure limits the expansion of Russia’s LNG capacity and thereby limits Russia’s revenues.

(12) Decision (CFSP) 2024/1744 introduces import restrictions on Russian LNG through Union LNG terminals that are not connected to the interconnected natural gas system. This is a targeted measure only affecting specific facilities in certain Member States. It does not impede in any way imports of Russian LNG through other facilities in the Union and does not have any adverse effects on the Union’s gas market and on its security of supply, including on available volumes and prices. Those restrictions should not affect the supply of Russian LNG from the mainland of a Member State to its outermost regions.

(13) Decision (CFSP) 2024/1744 introduces a sectoral ban prohibiting access to Member States’ ports and locks as well as a broad range of services related to maritime transport for vessels which contribute to Russia’s ability to wage war against Ukraine. That measure should constrain the activity of vessels involved in the transport of goods generating revenue for Russia’s warfare or vessels operated to contribute or support actions or policies supporting Russia’s actions against Ukraine. Vessels subject to the restrictive measures are listed in Annex XVI to Decision (CFSP) 2024/1744. Union restrictive measures, being an essential tool of the Union’s common foreign and security policy against Russia’s war of aggression against Ukraine, are not directed at Union flagged vessels. Such vessels operate under, and must comply with their obligations in accordance with, Union and national law. The competent authorities of the Member States should implement and enforce Union restrictive measures in their respective jurisdictions in relation to Union flagged vessels. Furthermore, Decision (CFSP) 2024/1744 clarifies the scope of the port access ban for Russian-flagged vessels and adds a derogation.

(14) Decision (CFSP) 2024/1744 introduces a prohibition on purchasing, importing, transferring or exporting Ukrainian cultural property goods and other goods of archaeological, historical, cultural, rare scientific or religious importance, where there are reasonable grounds to suspect that the goods have been unlawfully removed from Ukraine. Furthermore, it introduces a prohibition on related services.

(15) In 2020, Russia introduced new provisions in its Arbitration Procedure Code with the purpose of ensuring, unless otherwise established by an international treaty of Russia or by agreement of the parties, the exclusive competence of courts in Russia in disputes with the participation of persons in respect of which restrictive measures are applied or in disputes of one Russian or foreign person with another Russian or foreign person, if the basis for such disputes is restrictive measures. Such legislation, which has been extensively applied by Russian courts, has the clear objective or effect of forcing the satisfaction of claims against assets of Union companies in a foreign jurisdiction, claims which they would otherwise be prohibited from satisfying pursuant to Regulation (EU) No 833/2014 or Council Regulation (EU) No 269/2014 (5). Consequently, with a view to increasing the costs on the Russian Federation of its illegal actions in Ukraine, and determining it to end such actions, Decision (CFSP) 2024/1744 enables the possibility to subject companies which make use of those provisions of Russian law to a transaction ban.

(16) The Central Bank of Russia has developed the ‘System for Transfer of Financial Messages’ (SPFS), a specialised financial messaging service to exchange financial data, which is aimed at neutralising the impact of the measures established in Regulation (EU) No 833/2014, in particular concerning the banking and financial sector. With a view to containing the development of the SPFS, reducing Russia’s capacity to wage war and preventing the frustration of the measures established in Regulation (EU) No 833/2014, Decision (CSFP) 2024/1744 prohibits Union entities which operate outside of Russia from directly connecting to the SPFS or equivalent specialised financial messaging services set up by the Central Bank of Russia, and adds a transaction ban on Union operators with specifically listed entities using that system outside Russia. Those measures do not concern entities established and operating in Russia, including subsidiaries of Union entities. Decision (CSFP) 2024/1744 does not prohibit Union entities from dealing with Russian entities which use the SPFS, provided that those Union entities do not connect to the SPFS themselves. In addition, in order to avoid unintended consequences on the financing of, and payment for, legitimate business transactions and transactions for other justified purposes, Decision (CSFP) 2024/1744 also sets out targeted exceptions allowing Union entities to connect to the SPFS.

(17) Certain credit and financial institutions established outside of the Union might be facilitating transactions that frustrate the measures established in Regulation (EU) No 833/2014. Decision (CSFP) 2024/1744 establishes a transaction ban on Union operators with credit and financial institutions as well as crypto assets providers, established outside of the Union, when the Council has determined that those entities facilitate transactions that support Russia’s defence-industrial base through the export, supply, sale, transfer or transport towards Russia of dual-use goods and technology, goods and technology as listed in Annexes XI, XX and XXXV to Regulation (EU) No 833/2014, common high priority items as listed in Annex XL to Regulation (EU) No 833/2014, or firearms and ammunition as listed in Annex I to Regulation (EU) No 258/2012 of the European Parliament and of the Council (6).

(18) Decision (CFSP) 2024/1744 further broadens the existing prohibition on the provision of support, including financing and financial assistance or any other benefit, from a Union, Euratom or Member State programme to any legal person, entity or body established in Russia or to any legal person, entity or body majority owned by them. Targeted exemptions are also introduced.

(19) In order not to unduly restrict the right to employment of Union nationals who resided in Russia before the invasion of Ukraine in February 2022 and who are employed by subsidiaries of Union and of partner countries’ entities in Russia, Decision (CFSP) 2024/1744 creates an exemption from the prohibition to provide certain services to the Government of Russia or to legal persons, entities or bodies established in Russia.

(20) The Russian Government and Russian courts have been undertaking actions to illegitimately deprive Member State intellectual property rights holders of their protection in Russia. This has resulted in an undue competitive advantage for the Russian industry and contributed to Russia’s revenues, further enabling it to wage war in Ukraine. In order to neutralise that, Decision (CFSP) 2024/1744 imposes restrictions on accepting applications for registrations in the Union of certain intellectual property rights by Russian nationals, natural persons resident in Russia and Russian companies. In particular, and without prejudice to their procedural rules, Intellectual Property Offices and other competent institutions should not allow the filing of such applications. Moreover, in complying with that obligation, if any such applications are filed, Intellectual Property Offices and other competent institutions should not be required to issue a formal decision of refusal, thereby allowing the possible re-filing once the current restriction is repealed. In order to implement that restriction, Intellectual Property Offices and other competent institutions should be enabled to request the necessary information from natural persons and companies applying for registration of the relevant intellectual property rights.

(21) Decision (CFSP) 2024/1744 introduces a prohibition on the acceptance, by political parties, foundations, alliances, non-governmental organisations, including think tanks, and media service providers in the Union, of financing, donations or any other economic benefits or support from Russia, whether directly or indirectly. In view of the continued concerted efforts by Russia to interfere with democratic processes in the Union and to undermine its democratic foundations, including through influence campaigns and the promotion of disinformation aimed at undermining the territorial integrity, sovereignty and independence of Ukraine and through promoting pro-Russian propaganda aimed at justifying and supporting Russia’s war of aggression against Ukraine, it is appropriate that funding from Russia and its proxies to actors in the Union which form part of the public-opinion forming processes be prohibited. Those propaganda and disinformation campaigns are capable of undermining the foundations of democratic societies and are an integral part of the arsenal of modern hybrid attacks. Restricting that financial support aims to safeguard the integrity of the Union’s political processes, protect Union citizens from manipulation and defend the internal affairs of the Union from malign interference by ensuring the protection of the principles of rule of law, democracy and media pluralism. Member States can counter such interference with democratic processes and undermining of democratic foundations, as appropriate within the confines of existing national compliance frameworks. Consistent with the fundamental rights and freedoms recognised in the Charter, 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, respectively, thereof, that restriction does not prevent media service providers and their staff from carrying out any other activities in the Union, such as research and interviews. Moreover, that restriction does 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, and in Member States’ constitutions, within their respective fields of application.

(22) With a view to increasing awareness of enforcement action, it is appropriate that Member States report about penalties imposed for violations of the restrictive measures.

(23) In line with the Union’s common foreign and security policy objectives of preserving peace, reinforcing international security and promoting international cooperation, democracy and the rule of law, and more specifically the objectives pursued by Decision 2014/512/CFSP, it is appropriate to ensure that the documents held by the Council, the Commission and the High Representative of the Union for Foreign Affairs and Security Policy (‘the High Representative’) concerning the enforcement of the restrictive measures set out in Regulation (EU) No 833/2014, or concerning the prevention of the violation or circumvention of those measures, are subject to professional secrecy and enjoy the protection afforded by the rules applicable to the Union institutions, since information contained in those documents could be used to obstruct the enforcement of those measures or to compromise their effectiveness, given that the persons and entities concerned could act in such a way as to prevent their enforcement. That protection should also be ensured for joint proposals from the High Representative and the Commission for the amendment of Regulation (EU) No 833/2014 and any related preparatory documents, as their disclosure might affect the effectiveness of the measures set out in Regulation (EU) No 833/2014 and the preparation of, and negotiation on the basis of, future proposals. Certain measures which are included in such proposals, and which cannot be adopted by the Council for various reasons, are often included by the High Representative and the Commission in subsequent proposals. It is important to protect that power of initiative from any influence exerted by public or private interests that attempt, outside of organised consultations, to compel the Union institutions and Union services to propose, adopt, amend or agree on an amendment. Their disclosure could render the possible new measures ineffective due to the fact that their intended adoption would have already been revealed. Thus, it should be presumed that disclosure of those documents would harm the security of the Union or that of one or more of its Member States or the conduct of their international relations.

(24) Decision (CFSP) 2024/1744 introduces a derogation to allow the satisfaction of certain claims brought by Russian persons, entities and bodies if that is strictly necessary for the divestment from Russia or the wind-down of business activities in Russia.

(25) It is appropriate to introduce provisions to enable Member State nationals and companies to obtain compensation from Russian individuals and entities that caused damages to them. That includes damages caused to the companies they own or control, in connection with a contract or a transaction the performance of which was affected by the measures imposed under Regulation (EU) No 833/2014, and with the illegitimate temporary management imposed by a decision of the Russian leadership targeting properties of foreign persons, located on the territory of the Russian Federation, that are associated with ‘unfriendly foreign states’, that is, states which have introduced restrictive measures against Russia. Compensation can be obtained provided that such a decision is illegal under international customary law or under a bilateral investment treaty entered into between a Member State and Russia. In either case, the compensation could be claimed under the condition that the Member State national or company concerned does not have effective access to remedies, for example under the relevant bilateral investment treaty. Such compensation may be claimed before Member State courts in accordance with the relevant provisions of Union and Member State law regarding jurisdiction and court procedures in civil and commercial matters, including those concerning possible interim relief procedures.

(26) Where a natural or legal person voluntarily, completely and in due time discloses a violation of the restrictive measures, it should be possible for national competent authorities to take that self-disclosure into account when applying penalties, as appropriate, in accordance with national administrative law or with other relevant national law or rules. The measures taken by Member States pursuant to Directive (EU) 2024/1226 of the European Parliament and of the Council (7) and the requirements contained therein regarding mitigating circumstances apply.

(27) Regulation (EU) No 833/2014 applies only within the jurisdictional limits defined in Article 13 thereof. At the same time, if Union operators are able to and effectively assert a decisive influence over the conduct of a legal person, entity or body established outside the Union, they may incur responsibility for actions of that legal person, entity or body that undermine the restrictive measures and should use their influence to prevent those actions from occurring.

(28) Such influence can derive from ownership or control over the legal person, entity or body. Ownership means being in possession of 50 % or more of the proprietary rights of the legal person, entity or body, or having a majority interest therein. Elements that indicate control include: the right or the power to appoint or remove a majority of the members of the administrative, management or supervisory body; the right to use all or part of the assets of the legal person, entity or body; managing the business of the legal person, entity or body on a unified basis, while publishing consolidated accounts; or the right to exercise a dominant influence over the legal person, entity or body.

(29) It is appropriate to require that Union operators undertake their best efforts to ensure that legal persons, entities and bodies established outside the Union that they own or control do not participate in activities that undermine the restrictive measures provided for in Regulation (EU) No 833/2014. Such activities are those resulting in an effect that those restrictive measures seek to prevent, for example, that a recipient in Russia obtains goods, technology, financing or services of a type that is subject to prohibitions under Regulation (EU) No 833/2014.

(30) Best efforts should be understood as comprising all actions that are suitable and necessary to achieve the result of preventing the undermining of the restrictive measures in Regulation (EU) No 833/2014. Those actions can include, for example, the implementation of appropriate policies, controls and procedures to mitigate and manage risk effectively, considering factors such as the third country of establishment, the business sector and the type of activity of the legal person, entity or body that is owned or controlled by the Union operator. At the same time, best efforts should be understood as comprising only actions that are feasible for the Union operator in view of its nature, its size and the relevant factual circumstances, in particular the degree of effective control over the legal person, entity or body established outside the Union. Such circumstances include the situation where the Union operator, due to reasons that it did not cause itself, such as the legislation of a third country, is not able to exercise control over a legal person, entity or body that it owns.

(31) Article 12g of Regulation (EU) No 833/2014 requires Union operators to contractually prohibit re-exportation to Russia and re-exportation for use in Russia of sensitive goods and technology as listed in Annexes XI, XX and XXXV to Regulation (EU) No 833/2014, certain common high priority items as listed in Annex XL to Regulation (EU) No 833/2014, or firearms and ammunition as listed in Annex I to Regulation (EU) No 258/2012 (‘no-Russia clause’). In the case of contracts falling within the scope of Article 12g of Regulation (EU) No 833/2014 that were concluded before 19 December 2023, the obligation under that Article should be considered as met if the contract contains a general clause that prohibits exportation and re-exportation of the goods and technology in question to jurisdictions targeted by Union restrictive measures, and sets out adequate remedies in the event of a breach of that clause.

(32) The Commission will assess the impact that the entry into force of the existing obligation under Article 12g of Regulation (EU) No 833/2014 to use a ‘no-Russia clause’ has on deterring circumvention. It will also assess very closely trade data, export statistics and other information concerning circumvention patterns regarding the goods referred to in that Article, including the role that subsidiaries of Union operators in third countries may play in such patterns. On that basis, the Commission will assess whether the ‘no-Russia clause’ is appropriate for its purpose and consider any other appropriate actions to curb Russia’s access to sensitive goods which enable it to pursue the war in Ukraine, including the possibility of requiring Union operators to ensure that their subsidiaries in third countries also use the ‘no-Russia clause’.

(33) Decision (CFSP) 2024/1744 requires Union operators to contractually prohibit their commercial counterparts in third countries from using, or allowing the use of, the intellectual property rights, trade secrets or material or information protected by intellectual property rights or protected as trade secret transferred to them in connection with common high priority items to be sold, supplied or exported to Russia or for use in Russia. To ensure compliance with that obligation, Union operators should include an obligation to adopt proper remedies in such agreements. Union operators should report any breaches detected to the national competent authorities. In the case of contracts falling within the scope of this restriction that were concluded before 25 June 2024, the obligation should be considered as met if the contract contains a general clause that prohibits using, or allowing the use of, the intellectual property rights, trade secrets or material or information protected by intellectual property rights or protected as trade secret in question, and sets out adequate remedies in the event of a breach of that clause.

(34) To help combat the re-exportation of common high priority items, as listed in Annex XL to Regulation (EU) No 833/2014, found on the battlefield in Ukraine or critical to the development, production or use of Russian military systems, Decision (CFSP) 2024/1744 requires Union operators that are selling, supplying, transferring or exporting common high priority items to third countries, other than the partner countries listed in Annex VIII to Regulation (EU) No 833/2014, to implement due diligence mechanisms capable of identifying and assessing risks of exportation to Russia and mitigating such risks. Moreover, Decision (CFSP) 2024/1744 requires Union operators to ensure that legal persons, entities and bodies established outside the Union that they own or control also implement those requirements.

(35) Where Regulation (EU) No 833/2014 requires Union operators to ensure that legal persons, entities and bodies established outside the Union that they own or control conduct certain actions to prevent the exportation or re-exportation of goods or technology to Russia, such requirements should be pursued to the extent that is permitted by the legislation of the third country where the legal person, entity or body in question is established.

(36) Decision (CFSP) 2024/1744 clarifies that the protection against liability that is granted to Union operators if they did not know, and had no reasonable cause to suspect, that their actions would infringe Union restrictive measures cannot be invoked where Union operators have failed to carry out appropriate due diligence. Publicly or readily available information should be duly taken into account when carrying out such due diligence. Therefore, for example, a Union operator should not be able to successfully invoke such protection when it is accused of breaching the relevant restrictive measures because it has failed to carry out simple checks or inspections.

(37) In order to ensure alignment with the interpretation of the Court of Justice of the European Union in Case C-72/11, Decision (CFSP) 2024/1744 amends the provision prohibiting circumvention to clarify that the requirements of knowledge and intent are met not only where a person deliberately seeks the object or effect of circumventing restrictive measures but also where a person participating in an activity having the object or effect of circumventing restrictive measures is aware that such participation may have that object or that effect, and accepts that possibility.

(38) Decision (CFSP) 2024/1744 adds 61 new entities to the list of natural or legal persons, entities and bodies set out in Annex IV to Decision 2014/512/CFSP, namely the list of persons, entities and bodies supporting Russia’s military-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. Decision (CFSP) 2024/1744 also includes on that list certain entities in third countries other than Russia that are involved in the circumvention of trade restrictions and that engage in the procurement of sensitive items used for, for example, the production of Unmanned Aerial Vehicles, or that provide material support for Russian military operations.

(39) Decision (CFSP) 2024/1744 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 in its war of aggression against Ukraine and items which contribute to the development or production of its military systems, including certain machine tools and certain ‘All Terrain Vehicles’.

(40) Decision (CFSP) 2024/1744 imposes further restrictions on exports of goods which could contribute in particular to the enhancement of Russian industrial capacities, such as chemicals, including manganese ores and compounds of rare-earths, plastics, excavating machinery, monitors and electrical equipment. In addition, five common high priority items were added to the restrictions on exports of goods.

(41) Additionally, Decision (CFSP) 2024/1744 introduces further restrictions on the import of helium which generates significant revenues for Russia, thereby enabling the continuation of its war of aggression against Ukraine.

(42) 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 agreed by the Price Cap Coalition. In close coordination with the Price Cap Coalition, Council Decision (CFSP) 2023/2874 (8) extends the exemption provided for in relation to the Sakhalin-2 (Сахалин-2) Project, located in Russia, until 28 June 2025 to ensure Japan’s energy security needs.

(43) Decision (CFSP) 2024/1744 makes certain technical amendments in the operative text and annexes, deleting references to transitional periods which have expired. 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.

(44) The Union is committed to avoiding threats to nuclear safety and security. Consequently, the measures in this Regulation do not seek to undermine the planning, construction and engineering, commissioning, maintenance or fuel supply of the newly built nuclear project Paks II. For that reason, Decision (CFSP) 2024/1744 introduces a horizontal exemption from the prohibitions in this Regulation for the Paks II project, with a notification obligation for such activities.

(45) Finally, Decision (CFSP) 2024/1744 expands the lists of partner countries that apply a set of export control measures or a set of restrictive measures on imports of iron and steel and a set of import control measures which are substantially equivalent to those set out in Regulation (EU) No 833/2014.

(46) 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.

(47) 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:

(5) in Article 3c, the following paragraph is inserted: ‘6f.   By way of derogation from paragraphs 1, 2 and 4, the competent authorities may authorise, under such conditions as they deem appropriate, the export and transfer of the goods falling under CN code 9026 00 00, as listed in Part B of Annex XI, that are physically located in the Union as of 25 June 2024 for the purposes of maintenance or repairs, or the provision of related technical assistance, brokering services or other services, insurance or reinsurance, or financing or financial assistance, after having determined that it is strictly necessary for the functioning of the Sakhalin-2 (Сахалин-2) Project to ensure Japan’s energy security.’

(8) in Article 3g, paragraph 7 is replaced by the following: ‘7.   By way of derogation from paragraph 1, the competent authorities may authorise the purchase, import or transfer of the goods listed in Annex XVII, under such conditions as they deem appropriate, after having determined that this is necessary for the establishment, operation, maintenance, fuel supply and retreatment and safety of civil nuclear capabilities, and the continuation of design, construction and commissioning required for the completion of civil nuclear facilities, the supply of precursor material for the production of medical radioisotopes and similar medical applications, or critical technology for environmental radiation monitoring, as well as for civil nuclear cooperation, in particular in the field of research and development.’

(11) in Article 3l, the following paragraphs are inserted: ‘1b.   It shall be prohibited for any legal person, entity or body established in the Union which is owned for 25 % or more by a Russian natural or legal person, entity or body to be admitted to become a road transport undertaking which transports goods by road within the territory of the Union, including in transit. 1c.   It shall be prohibited, as of 26 July 2024 for any road transport undertaking established in the Union after 8 April 2022, which is owned for 25 % or more by a Russian natural or legal person, entity or body to transport goods by road within the territory of the Union, including in transit. 1d.   Road transport undertakings established in the Union shall, upon request of the national competent authority of the Member State where they are established, supply information on their ownership structure to that national competent authority. 2a.   Paragraphs 1b and 1c shall not apply to road transport undertakings established in the Union which are owned for 25 % or more by Russian nationals who are also nationals of a Member State or who have a temporary or permanent residence permit in a Member State.’

(21) in Article 8, paragraph 1 is replaced by the following: ‘1.   Member States shall lay down the rules on penalties, including as appropriate criminal penalties, applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive, and may take the voluntary self-disclosure of infringements of the provisions of this Regulation into account as a mitigating factor, in accordance with the respective national law. Member States shall also provide for appropriate measures of confiscation of the proceeds of such infringements.’

(22) the following article is inserted: ‘Article 8a Natural and legal persons, entities and bodies shall undertake their best efforts to ensure that any legal person, entity or body established outside the Union that they own or control does not participate in activities that undermine the restrictive measures provided for in this Regulation.’

(23) in Article 11, the following paragraph is inserted: ‘4.   By way of derogation from paragraph 1, the competent authorities, based on a specific and case-by-case assessment, may authorise, until 31 December 2024, the satisfaction of a claim made by one of the persons, entities and bodies indicated in point (b) paragraph 1, under such conditions as the competent authorities deem appropriate and after having determined that the satisfaction of the claim is strictly necessary for the divestment from Russia or the wind-down of business activities in Russia.’

(24) the following articles are inserted: ‘Article 11a Any person referred to in point (c) or (d) of Article 13 shall be entitled to recover, in judicial proceedings before the competent courts of the Member State, any damages, including legal costs, incurred by that person as a consequence of claims lodged with courts in third countries by persons, entities and bodies referred to in point (a), (b) or (c) of Article 11(1), in connection with any contract or transaction the performance of which has been affected, directly or indirectly, in whole or in part, by the measures imposed under this Regulation, provided that the person concerned does not have effective access to the remedies under the relevant jurisdiction.

Article 11b

(25) Article 12 is replaced by the following: ‘Article 12 It shall be prohibited to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent prohibitions in this Regulation, including by participating in such activities without deliberately seeking that object or effect but being aware that the participation may have that object or effect and accepting that possibility.’

(29) The following article is inserted: ‘Article 12h With regard to the Paks II project, the prohibitions in this Regulation shall not apply to activities necessary for the establishment, operation, maintenance, fuel supply and retreatment and safety of civil nuclear capabilities, and the continuation of design, construction and commissioning required for the completion of civil nuclear facilities, provided that any such activity has been notified by natural and legal persons, entities and bodies within two weeks of its start to the competent authority of the Member State where they are resident, located, established or incorporated. The Member State concerned shall inform the other Member States and the Commission of any information received under this Article within 2 weeks of its receipt.’

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

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

(32) Annex VIII is replaced in accordance with Annex III to this Regulation;

(33) Annex XXI is amended in accordance with Annex IV to this Regulation;

(34) Annex XXIII is replaced in accordance with Annex V to this Regulation;

(35) Annex XXIIIC is added in accordance with Annex VI to this Regulation;

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

(37) Annex XXXVI is replaced in accordance with Annex VIII to this Regulation;

(38) Annex XL is amended in accordance with Annex IX to this Regulation;

(39) Annex XLII is added in accordance with Annex X to this Regulation;

(40) Annex XLIII is added in accordance with Annex XI to this Regulation;

(41) Annex XLIV is added in accordance with Annex XII to this Regulation;

(42) Annex XLV is added in accordance with Annex XIII to this Regulation;

(43) Annex XXIIIA is deleted.

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 Luxembourg, 24 June 2024.

For the Council The President J. BORRELL FONTELLES

(1) OJ L, 2024/1744, 24.6.2024, ELI: http://data.europa.eu/eli/dec/2024/1744/oj.

(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) Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community (OJ L 293, 31/10/2008, p. 3).

(5) 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).

(6) Regulation (EU) No 258/2012 of the European Parliament and of the Council of 14 March 2012 implementing Article 10 of the United Nations’ Protocol against the illicit manufacturing of and trafficking in firearms, their Parts and components and ammunition, supplementing the United Nations Convention against Transnational Organised Crime (UN Firearms Protocol), and establishing export authorisation, and import and transit measures for firearms, their parts and components and ammunition (OJ L 94, 30.3.2012, p. 1).

(7) Directive (EU) 2024/1226 of the European Parliament and of the Council of 24 April 2024 on the definition of criminal offences and penalties for the violation of Union restrictive measures and amending Directive (EU) 2018/1673 (OJ L, 2024/1226, 29.4.2024, ELI: http://data.europa.eu/eli/dir/2024/1226/oj).

(8) Council Decision (CFSP) 2023/2874 of 18 December 2023 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (OJ L, 2023/2874, 18.12.2023, ELI: http://data.europa.eu/eli/dec/2023/2874/oj).