The Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations 2022

Made: 13th April 2022

Laid before Parliament: at 11.00 a.m. on 14th April 2022

Coming into force: at 5.00 p.m. on 14th April 2022

The Secretary of State[^f00001], considering that the requirements of section 45(2) of the Sanctions and Anti-Money Laundering Act 2018[^f00002] are met, makes the following Regulations in exercise of the powers conferred by sections 1, 3(1)(b)(ii) and (d)(ii), 5, 15(2)(a) and (b) and (6), 17, 19, 20, 21(1) and 45 of, and paragraphs 2(b), 3(a) and (b), 4(b) and (c), 5(a)(ii) and (b), 6(a)(ii) and (b), 7(b), 11(a)(ii), 13(b), (h), (k), (l), (m), (n), and (w), 14(a), (f) and (k), 17 to 23 and 27 of Schedule 1 to, that Act.

Citation, commencement and extent

1

• (1) These Regulations may be cited as the Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations 2022.

• (2) These Regulations come into force on 5.00 p.m. on 14th April 2022.

• (3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Amendment of the Russia (Sanctions) (EU Exit) Regulations 2019

2

The Russia (Sanctions) (EU Exit) Regulations 2019[^f00003] are amended as set out in regulations 3 to 10.

Interpretation of Part 5 (Trade)

3

In regulation 21(1)—

• (a) at the appropriate place, insert—

• “luxury goods” means any thing specified in Schedule 3A, other than any thing for the time being specified in— Schedules 2 or 3 to the Export Control Order 2008, Annex 1 of the Dual-Use Regulation, or Schedule 2A;

• “oil refining goods” means— any thing specified in Schedule 2D, other than— any thing which is oil refining technology, or any thing for the time being specified in— Schedule 3 to the Export Control Order 2008[^f00004], Annex 1 of the Dual-Use Regulation[^f00005], Schedule 2A, or Part 2 of Schedule 3, and any tangible storage medium on which oil refining technology is recorded or from which it can be derived;

• “oil refining technology” means any thing described in Schedule 2D as software or technology, other than any thing for the time being specified in — Schedule 3 to the Export Control Order 2008, Annex 1 of the Dual-Use Regulation, or Schedule 2A;

• “quantum computing and advanced materials goods” means— any thing specified in Schedule 2E, other than— any thing which is quantum computing and advanced materials technology, or any thing for the time being specified in— Schedule 2 or 3 to the Export Control Order 2008, Annex 1 of the Dual-Use Regulation, Schedule 2A, Schedule 2C, Schedule 2D, or Part 2 of Schedule 3, and any tangible storage medium on which quantum computing and advanced materials technology is recorded or from which it can be derived;

• “quantum computing and advanced materials technology” means any thing described in Schedule 2E as software or technology, other than anything for the time being specified in— Schedule 2 or 3 to the Export Control Order 2008, Annex 1 of the Dual-Use Regulation, Schedule 2A, Schedule 2C, or Schedule 2D.

• (b) in the definition of “restricted goods”, after (d) insert—

(e) oil refining goods; (f) quantum computing and advanced materials goods;

• (c) in the definition of “restricted technology”, after (d) insert—

(e) oil refining technology; (f) quantum computing and advanced materials technology;

Luxury goods and iron and steel products

4

After regulation 46A[^f00006], insert—

(46B) (1) The export of luxury goods to, or for use in, Russia is prohibited. (2) A person must not directly or indirectly— (a) supply or deliver luxury goods from a third country to a place in Russia; (b) make luxury goods available to a person connected with Russia; (c) make luxury goods available for use in Russia. (3) Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences). (4) A person who contravenes a prohibition in paragraph (2) commits an offence, but— (a) it is a defence for a person charged with the offence of contravening paragraph (2)(a) to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Russia; (b) it is a defence for a person charged with the offence of contravening paragraph (2)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Russia; (c) it is a defence for a person charged with the offence of contravening paragraph (2)(c) to show that the person did not know and had no reasonable cause to suspect that the goods were for use in Russia. (5) In this regulation, “third country” means a country that is not the United Kingdom, the Isle of Man or Russia. (46C) In this Chapter, “iron and steel products” means any thing specified in Schedule 3B. (46D) (1) The import of iron and steel products which are consigned from Russia is prohibited. (2) The import of iron and steel products which originate in Russia is prohibited. (3) Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences). (46E) (1) A person must not directly or indirectly acquire iron and steel products— (a) which originate in Russia; (b) which are located in Russia. (2) Paragraph (1) is subject to Part 7 (Exceptions and licences). (3) A person who contravenes a prohibition in paragraph (1) commits an offence, but— (a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the goods originated in Russia; (b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods were located in Russia. (46F) (1) A person must not directly or indirectly supply or deliver iron and steel products from a place in Russia to a third country. (2) Paragraph (1) is subject to Part 7 (Exceptions and licences). (3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was from a place in Russia, whether directly or indirectly. (4) In this regulation, “third country” means a country that is not the United Kingdom, the Isle of Man or Russia.

Trade: exceptions in relation to personal effects

5

In regulation 60A—

• (a) in paragraph (1), for “or critical-industry technology” substitute “, critical-industry technology, quantum computing and advanced materials goods or quantum computing and advanced materials technology”;

• (b) after paragraph (1), insert—

(1A) The prohibitions in regulation 46B (luxury goods) are not contravened by a relevant activity in relation to— (a) any luxury goods which are necessary for the official purposes of a diplomatic mission or consular post in Russia, or of an international organisation enjoying immunities in accordance with international law, or (b) the personal effects of their staff.

• (c) in paragraph (2)—

• (i) for “paragraph (1)”, in both places it occurs, substitute “paragraphs (1) and (1A)”;

• (ii) after the definition of “diplomatic mission”, insert—

• “luxury goods” has the meaning given in regulation 21 (interpretation of Part 5);
• “quantum computing and advanced materials goods” has the meaning given in regulation 21 (interpretation of Part 5);
• “quantum computing and advanced materials technology” has the meaning given in regulation 21 (interpretation of Part 5);

Trade: exceptions in relation to consumer communications devices

6

In regulation 60B—

• (a) in paragraph (1)—

• (i) after “(transfer of restricted technology)”, omit “and”;

• (ii) after “brokering services)”, insert “and regulation 46B (luxury goods);

• (iii) for “or critical industry technology”, substitute “, critical industry technology or luxury goods”;

• (b) in paragraph (2)(a), after the definition of “critical industry technology”, insert—

• “luxury goods” has the meaning given in regulation 21 (interpretation of Part 5);

Trade: exceptions for emergencies in certain areas

7

In regulation 61—

• (a) in paragraph (1A)(b)—

• (i) after “space goods,”, insert “oil refining goods,”;

• (ii) for “or aviation and space technology” substitute “, aviation and space technology or oil refining technology”;

• (b) in paragraph (2), after the definition of “critical industry technology”, insert—

• “oil refining goods” has the meaning given in regulation 21 (interpretation of Part 5);
• “oil refining technology” has the meaning given in regulation 21 (interpretation of Part 5);

Trade offences

8

In regulation 86—

• (a) in paragraph (1), after “23”, insert “, 46D”;

• (b) in paragraph (3), after “40(1)”, insert “, 46B(1)”;

• (c) in paragraph (5), after “40(1)”, insert “, 46B(1), 46D”.

Maritime enforcement powers

9

In regulation 89(2), after sub-paragraph (c), insert—

(ca) a prohibition in regulation 46B (trade sanctions relating to luxury goods); (cb) a prohibition in either of regulations 46D and 46E (trade sanctions relating to iron and steel products);

Insertion of Schedules

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• (1) After Schedule 2C, insert Schedules 2D and 2E, which are set out in Part 1 of the Schedule to these Regulations.

• (2) After Schedule 3, insert Schedules 3A and 3B, which are set out in Part 2 of the Schedule to these Regulations.

SCHEDULE

PART 1

PART 2

Signed

Vicky Ford — Parliamentary Under Secretary of State — Foreign, Commonwealth and Development Office — 13th April 2022

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to amend the Russia (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”).

Regulations 3, 4 and 10 amend Part 5 of the 2019 Regulations, on trade, and insert related Schedules. New restrictions are imposed in relation to trade in—

• oil refining goods and technology (as specified in new Schedule 2D),

• quantum computing and advanced materials goods and technology (as specified in new Schedule 2E)

• luxury goods (as specified in new Schedule 3A), and

• iron and steel goods (as specified in new Schedule 3B).

The goods specified in new Schedules 2D, 3A and 3B are specified by reference to commodity codes which are set out in the Tariff of the United Kingdom.

Regulations 5, 6 and 7 provide for licensing and exceptions from the new restrictions, by amendments to Part 7 of the 2019 Regulations.

Regulations 8 and 9 make consequential changes to enforcement provisions in Parts 9 and 10 of the 2019 Regulations.

A full impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector has been published alongside these Regulations and is available from legislation.gov.uk or from the Foreign, Commonwealth and Development Office, King Charles Street, London SW1A 2AH.

Footnotes

[^f00001]: The power to make regulations under Part 1 of the Sanctions and Anti-Money Laundering Act 2018 (c. 13) is conferred on an appropriate Minister. Section 1(9)(a) of the Act defines an “appropriate Minister” as including the Secretary of State.

[^f00002]: 2018 c. 13. Section 17(5)(b)(i) (enforcement) is amended by the Sentencing Act 2020 (c. 17), Schedule 24, paragraph 443(1). Sections 1 and 45 are amended by the Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), sections 57 and 62.

[^f00003]: S.I. 2019/855 (“the 2019 Regulations”), as amended by S.I. 2020/590; S.I. 2020/951; S.I. 2022/123; S.I. 2022/194; S.I. 2022/195; S.I. 2022/203; S.I. 2022/205; S.I. 2022/241; S.I. 2022/395; and by the Sentencing Act 2020 (c. 17).

[^f00004]: S.I. 2008/3231. Schedule 2 was substituted by S.I. 2017/85 and Schedule 3 was substituted by S.I. 2010/2007. Relevant amending instruments are S.I. 2012/1910; S.I. 2014/1069; S.I. 2015/940; S.I. 2017/85; 2017/697; S.I. 2018/165; S.I. 2018/939; S.I. 2018/137; S.I. 2018/989; S.I. 2019/1159; S.I. 2020/1502 and S.I. 2021/586.

[^f00005]: See regulation 21 of the 2019 Regulations for the definition of “the Dual Use Regulation”.

[^f00006]: Regulation 46A was inserted by S.I. 2022/395.