Council Regulation (EU) 2024/2642 of 8 October 2024 concerning restrictive measures in view of Russia’s destabilizing activities

Article 1

For the purposes of this Regulation, the following definitions apply:

(a) ‘claim’ means any claim, whether asserted by legal proceedings or not, made before or after the date of entry into force of this Regulation, under or in connection with a contract or transaction, and in particular: (i) a claim for performance of any obligation arising under or in connection with a contract or transaction; (ii) a claim for extension or payment of a bond, financial guarantee or indemnity of whatever form; (iii) a claim for compensation in respect of a contract or transaction; (iv) a counterclaim; (v) a claim for the recognition or enforcement, including by the procedure of exequatur, of a judgment, an arbitration award or an equivalent decision, wherever made or given;

(b) ‘contract or transaction’ means any transaction of whatever form and whatever the applicable law, whether comprising one or more contracts or similar obligations made between the same or different parties; for that purpose ‘contract’ includes a bond, guarantee or indemnity, particularly a financial guarantee or financial indemnity, and credit, whether legally independent or not, as well as any related provision arising under, or in connection with, the transaction;

(c) ‘competent authorities’means the competent authorities of the Member States as identified on the websites listed in Annex II;

(d) ‘economic resources’ means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds, but may be used to obtain funds, goods or services;

(e) ‘freezing of economic resources’ means preventing the use of economic resources to obtain funds, goods or services in any way, including, but not limited to, by selling, hiring or mortgaging them;

(f) ‘freezing of funds’ means preventing any move, transfer, alteration, use of, access to, or dealing with funds in any way that would result in any change in their volume, amount, location, ownership, possession, character, destination or other change that would enable the funds to be used, including portfolio management;

(g) ‘funds’ means financial assets and benefit of every kind, including, but not limited to: (i) cash, cheques, claims on money, drafts, money orders and other payment instruments; (ii) deposits with financial institutions or other entities, balances on accounts, debts and debt obligations; (iii) publicly and privately-traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts; (iv) interest, dividends or other income on or value accruing from or generated by assets; (v) credit, right of set-off, guarantees, performance bonds or other financial commitments; (vi) letters of credit, bills of lading, bills of sale; (vii) documents showing evidence of an interest in funds or financial resources;

(h) ‘territory of the Union’ means the territories of the Member States to which the Treaty on European Union applies, under the conditions laid down therein, including their airspace.

Article 1a

The list in Annex III shall include tangible assets which are:

(a) used in activities of a destabilising character that endanger or damage critical infrastructure, including submarine infrastructure, and that are attributable to or benefitting the Government of the Russian Federation;

(b) used in activities of a destabilising character that violate national, European or international air, marine or land traffic regulations, and that are attributable to or benefitting the Government of the Russian Federation;

(c) are used in activities of a destabilising character, including espionage and surveillance, the transport of weapons or military equipment and personnel, information manipulation and interference, and that are attributable to or benefiting the Government of the Russian Federation;

(d) are owned, chartered or operated by natural or legal persons, entities or bodies listed in Annex I, or is otherwise used in the name of, on behalf of, in relation with, or for the benefit of, such persons.

The Member State concerned shall inform the other Member States and the Commission of any such authorisation within two weeks thereof.

Article 1b

It shall be prohibited to engage, directly or indirectly, in any transaction with:

(a) a legal person, entity or body established outside the Union that is a credit or financial institution or an entity providing crypto assets services, involved in transactions that facilitate, directly or indirectly, activities by or otherwise supporting persons, entities or bodies engaged in activities referred to in Article 2(3), as listed in Annex IV to this Regulation; or

(b) a legal person, entity or body providing technical or operational assistance to natural or legal persons, entities or bodies engaged in activities referred to in Article 2(3), as listed in Annex IV to this Regulation.

The prohibition in paragraph 1 shall not apply to transactions that are:

(a) necessary for the export, sale, supply, transfer or transport of pharmaceutical, medical, or agricultural and food products, including wheat and fertilisers;

(b) strictly necessary to ensure access to judicial, administrative or arbitral proceedings in a Member State, as well as for the recognition or enforcement of a judgment or an arbitration award rendered in a Member State, provided that such transactions are consistent with the objectives of this Regulation and those of Council Decision (CFSP) 2024/2643 (¹); or

(c) necessary for humanitarian purposes, such as delivering or facilitating the delivery of assistance, including medical supplies, food, or the transfer of humanitarian workers and related assistance or for evacuations.

Article 1c

Article 2

Annex I shall include natural or legal persons, entities or bodies that are:

(a) responsible for, implementing, supporting, benefiting from, involved in or facilitating actions or policies attributable to the Government of the Russian Federation which undermine or threaten democracy, the rule of law, stability or security in the Union or in one or several of its Member States, in an international organisation, or in a third country, or which undermine or threaten the sovereignty or independence of one or several of its Member States, or of a third country, through any of the following actions: (i) planning, directing, engaging in, directly or indirectly, supporting, or otherwise facilitating the obstruction or undermining of the democratic political process or public order and safety, including by obstructing or undermining the holding of elections or attempting to destabilise or overthrow the constitutional order; (ii) planning, directing, engaging in, directly or indirectly, supporting, or otherwise facilitating violent demonstrations; (iii) planning, directing, engaging in, directly or indirectly, supporting, or otherwise facilitating acts of physical or non-physical violence, including activities to silence, intimidate, coerce, or exact reprisals against persons critical of the actions or policies of the Russian Federation; (iv) planning, directing, engaging in, directly or indirectly, supporting, or otherwise facilitating the use of information manipulation and interference; (v) planning, directing, engaging in, directly or indirectly, supporting, or otherwise facilitating any actions targeted at the functioning of democratic institutions, economic activities or services of public interest, including by unauthorised entry into the territory of a Member State, including its airspace, or aimed at interfering with, damaging or destroying, including through sabotage or malicious cyber activities as part of hybrid activities, critical infrastructure, including submarine infrastructure; (vi) planning, directing, engaging in, directly or indirectly, supporting, or otherwise facilitating the instrumentalisation of migrants as referred to in Article 1(4), point (b), of Regulation (EU) 2024/1359; (vii) exploiting an armed conflict, instability or insecurity, including through the illicit exploitation of, or trade in, natural resources and wildlife in a third country; (viii) instigating, supporting or otherwise facilitating a violent conflict, in a third country;

(b) associated with the natural or legal persons, entities or bodies listed under point (a);

(c) supporting the natural or legal persons, entities or bodies engaged in activities referred to in point (a).

Article 3

By way of derogation from Article 2(1) and (2), the competent authorities may authorise the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources, under such conditions as they deem appropriate, after having determined that the funds or economic resources concerned are:

(a) necessary to satisfy the basic needs of natural or legal persons, entities or bodies listed in Annex I, and dependent family members of such natural persons, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;

(b) intended exclusively for the payment of reasonable professional fees or the reimbursement of incurred expenses associated with the provision of legal services;

(c) intended exclusively for the payment of fees or service charges for the routine holding or maintenance of frozen funds or economic resources;

(d) necessary for extraordinary expenses, provided that the relevant competent authority has notified the competent authorities of the other Member States and the Commission of the grounds on which it considers that a specific authorisation should be granted, at least 2 weeks prior to the authorisation;

(e) to be paid into or from an account of a diplomatic or consular mission or an international organisation enjoying immunities in accordance with international law, insofar as such payments are intended to be used for official purposes of the diplomatic or consular mission or international organisation;

(f) necessary for the functioning of diplomatic and consular representations of the Union and of the Member States or partner countries in Russia, including delegations, embassies and missions, or international organisations in Russia enjoying immunities in accordance with international law; or

(g) necessary for the provision of electronic communication services by Union telecommunication operators, and for the provision of associated facilities and services necessary for the operation, maintenance and security of such electronic communication services.

Article 4

Article 2 (1) and (2) shall not apply to the provision, processing or payment of funds, other financial assets or economic resources or to the provision of goods and services which are necessary to ensure the timely delivery of humanitarian assistance or to support other activities that support basic human needs where such assistance and other activities are carried out by:

(a) the United Nations (UN), including its programmes, funds and other entities and bodies, as well as its specialised agencies and related organisations;

(b) international organisations;

(c) humanitarian organisations having observer status with the UN General Assembly and members of those humanitarian organisations;

(d) bilaterally or multilaterally funded non-governmental organisations participating in UN Humanitarian Response Plans, UN Refugee Response Plans, other UN appeals or humanitarian clusters coordinated by the UN Office for the Coordination of Humanitarian Affairs;

(e) organisations and agencies to which the Union has granted the Humanitarian Partnership Certificate or which are certified or recognised by a Member State in accordance with national procedures;

(f) Member States’ specialised agencies; or

(g) employees, grantees, subsidiaries, or implementing partners of the entities referred to in points (a) to (f) while and to the extent that they are acting in those capacities.

Article 5

By way of derogation from Article 2(1), the competent authorities may authorise the release of certain frozen funds or economic resources, provided that the following conditions are met:

(a) the funds or economic resources are the subject of an arbitral decision rendered prior to the date on which the natural or legal person, entity or body referred to in Article 2 was listed in Annex I, or of a judicial or administrative decision rendered in the Union, or a judicial decision enforceable in the Member State concerned, prior to or after that date;

(b) the funds or economic resources will be used exclusively to satisfy claims secured by such a decision or recognised as valid in such a decision, within the limits set by applicable laws and regulations governing the rights of persons having such claims;

(c) the decision is not for the benefit of a natural or legal person, entity or body listed in Annex I; and

(d) recognising the decision is not contrary to public policy in the Member State concerned.

Article 6

By way of derogation from Article 2(1) and provided that a payment by a natural or legal person, entity or body listed in Annex I is due under a contract or agreement that was concluded by, or an obligation that arose for, the natural or legal person, entity or body concerned, before the date on which that natural or legal person, entity or body was included in Annex I, the competent authorities may authorise, under such conditions as they deem appropriate, the release of certain frozen funds or economic resources, provided that the competent authority concerned has determined that:

(a) the funds or economic resources will be used for a payment by a natural or legal person, entity or body listed in Annex I; and

(b) the payment is not in breach of Article 2(2).

Article 7

Article 2 (2) shall not apply to the addition to frozen accounts of:

(a) interest or other earnings on those accounts;

(b) payments due under contracts, agreements or obligations that were concluded or arose before the date on which the natural or legal person, entity or body referred to in Article 2 was included in Annex I; or

(c) payments due under judicial, administrative or arbitral decisions rendered in a Member State or enforceable in the Member State concerned, provided that any such interest, other earnings and payments are frozen in accordance with Article 2(1).

Article 8

Natural and legal persons, entities and bodies shall:

(a) supply immediately any information which would facilitate compliance with this Regulation, such as information on accounts and amounts frozen in accordance with Article 2(1), to the competent authority of the Member State where they are resident or located, and transmit such information, directly or through the Member State, to the Commission; and

(b) cooperate with the competent authority in any verification of the information referred to in point (a).

Article 9

Natural or legal persons, entities or bodies listed in Annex I shall:

(a) report within 6 weeks from the date of listing in Annex I funds or economic resources within the jurisdiction of a Member State belonging to, owned, held or controlled by them, to the competent authority of the Member State where those funds or economic resources are located; and

(b) cooperate with the competent authority in any verification of such information.

Article 10

Article 11

No claims 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, including claims for indemnity or any other claim of this type, such as a claim for compensation or a claim under a guarantee, notably a claim for extension or payment of a bond, guarantee or indemnity, particularly a financial guarantee or financial indemnity, of whatever form, shall be satisfied, if they are made by:

(a) natural or legal persons, entities or bodies listed in Annex I;

(b) any natural or legal person, entity or body acting through or on behalf of one of the natural or legal persons, entities or bodies referred to in point (a);

(c) legal persons, entities or bodies listed in Annexes IV or V to this Regulation, or legal persons, entities or bodies established outside the Union whose proprietary rights are directly or indirectly owned for more than 50 % by them;

(d) any person, entity or body acting through or on behalf of one of the persons, entities or bodies referred to in point (c) of this paragraph.

Article 12

The Commission and Member States shall inform each other of the measures taken under this Regulation and share any other relevant information at their disposal in connection with this Regulation, in particular information in respect of:

(a) funds frozen under Article 2 and authorisations granted under the derogations set out in this Regulation;

(b) violation and enforcement problems and judgments handed down by national courts.

Article 13

Article 14

Article 15

Article 16

The Council, the Commission and the High Representative of the Union for Foreign Affairs and Security Policy (the ‘High Representative’) may process personal data in order to carry out their tasks under this Regulation. Those tasks include:

(a) as regards the Council, preparing and making amendments to Annex I;

(b) as regards the High Representative, preparing amendments to Annex I;

(c) as regards the Commission: (i) adding the contents of Annex I to the electronic, consolidated list of natural and legal persons, groups and entities subject to Union financial sanctions and to the interactive sanctions map, both of which are publicly available; (ii) processing information on the impact of the measures of this Regulation, such as the value of frozen funds and information on authorisations granted by the competent authorities.

Article 17

Article 18

Any information provided or received in accordance with this Regulation shall be used by the Commission only for the purposes for which it was provided or received.

Article 19

This Regulation shall apply:

(a) within the territory of the Union, including its airspace;

(b) on board any aircraft or vessel under the jurisdiction of a Member State;

(c) to any natural person inside or outside the territory of the Union who is a national of a Member State;

(d) to any legal person, entity or body, inside or outside the territory of the Union, which is incorporated or constituted under the law of a Member State;

(e) to any legal person, entity or body in respect of any business done in whole or in part within the Union.

Article 20