July continued to be a busy time as the Verkhovna Rada (the Ukrainian Parliament), the EU and the United States intensified their responses to the situation in the Crimea and the escalating situation in eastern Ukraine.
The measures are becoming increasingly complex. They have, in addition, been developing rapidly and this trend may well continue. It is absolutely essential, therefore, that the position be continuously monitored and nothing is taken for granted.
Ukraine Parliament closes Kerch, Theodosia, Sevastopol, Yalta and Yevpatoria, advice on the precise nature of which should be sought from Ukraine Counsel before agreeing any new contract without a trading-limits clause excluding Crimea calls, together with English law advice on potential ramifications. So far as existing contracts – which are subject to English law – are concerned, English law advice should be sought where orders are given to call Crimea.
EU adds (by Council Implementing Regulation (EU) No.810/2014 of 25 July) 15 individuals and nine entities to the asset freeze list. These include the Crimean ports of Sevastopol and Kerch. This is likely to make orders to call at either unlawful under an English law charterparty. Advice should be sought.
EU adds (by Council Implementing Regulation (EU) No.826/2014 of 30 July) eight individuals and three entities to the asset freeze and travel ban list. The individuals targeted include close acquaintances of President Putin.
EU imposes a ban (by Council Regulation (EU) No.825/2014 of 30 July) on investments in key sectors in Crimea and Sevastopol (transport, telecommunications, energy and the exploitation of natural resources), and an export ban on key equipment and technology related to those sectors.
EU imposes restrictions (by Council Regulation (EU) No.833/2014 of 31 July) on:
- Exports and sales of certain dual-use goods and technology as laid down in Council Regulation (EC) No.428/2009 and on the provision of related services and on certain services related to the supply of arms and military equipment. This does not affect the exports of dual-use goods and technology, including for aeronautics and for the space industry, for non-military use or for a non-military end-user. EU flag vessels or aircraft shall not be used (by Council Decision 2014/512/CFSP of 31 July).
- The sale, supply, transfer or export, directly or indirectly, of certain technologies for the oil industry in Russia in the form of a prior authorisation requirement.
- Access to the capital markets for certain financial institutions.
The United States (OFAC) imposes (pursuant to Executive Order 13662) Sectoral Sanctions on additional entities operating within Russia’s financial services sector, prohibiting U.S. persons from providing new financing to three major Russian financial institutions.
The United States (OFAC) adds one entity and four individuals to the Special Designated Nationals List (“SDN List”) under Executive Orders 13661 and 13660.