The Russia (Sanctions) (EU Exit) (Amendment) (No. 17) Regulations 2022

Regulation 20(1)

SCHEDULE 1 Amendments to Schedule 2A to the Russia (Sanctions) (EU Exit) Regulations 2019

PART 1 Entries to be inserted in the table in Part 1A

1.  Entries to be inserted in column 1 (items) after the entry “g. Alpha emitting radionuclides”—

“Aromatic polyamides (aramids) not controlled by 1C010, 1C210 or 1C990, presented in any of the following forms—
	(a) primary forms;
	(b) filament yarn or monofilaments;
	(c) filament tows;
	(d) rovings;
	(e) staple or chopped fibres;
	(f) fabrics;
	(g) pulp or flocks.
Nanomaterials as follows—
	(a) semiconductor nanomaterials;
	(b) composite-based nanomaterials;
	(c) any of the following carbon-based nanomaterials—
		(i) carbon nanotubes;
		(ii) carbon nanofibres;
		(iii) fullerenes;
		(iv) graphenes;
		(v) carbon onions.
Notes: For the purpose of the entry above, “nanomaterial” means a material that meets at least one of the following criteria—
	(a) it consists of particles, with one or more external dimensions in the size range 1 - 100 nm for more than 1 % of their number size distribution,
	(b) it has internal or surface structures in one or more dimensions in the size range 1 - 100 nm, or
	(c) it has a specific surface area by volume greater than 60 m2/cm3, excluding materials consisting of particles with a size lower than 1 nm.”

2.  Entry to be inserted in column 1 after the final entry beginning “1E994”—

““Technology” “required” for the “development”, “production” or “use” of the systems, equipment, components and software specified in the entries above relating to aromatic polyamides and nanomaterials.”.

PART 2 Insertion of Part 9

“PART 9 Miscellaneous items

1.   Equipment for oil production or oil exploration as follows—

(a) drill head integrated measurement equipment, including inertial navigation systems for measurement while drilling (MWD);

(b) gas monitoring systems and detectors therefor, designed for continuous operation and detection of hydrogen sulphide;

(c) equipment for seismological measurements, including reflection seismetics and seismic vibrators;

(d) sediment echo sounders.

2.   Collector equipment for metal ores in deep seabed.

3.   Equipment for the “production” of printed electronics for organic light emitting diodes (OLED), organic field-effect transistors (OFET) or organic photovoltaic cells (OPVC).

4.   Equipment for the “production” of microelectromechanical systems (MEMS) using the mechanical properties of silicon, including sensors in chip format like pressure membranes, bending beams or micro adjustment devices.

5.   Equipment, specially designed for the production of E-Fuels (electrofuels and synthetic fuels) or ultra efficient solar cells (efficiency > 30 %).

6.   Numerical controlled machine tools, having one or more linear axis with a travel length greater than 8000 mm.

7.   Advanced materials as follows—

(a) materials for cloaking or adaptive camouflage;

(b) metamaterials, e.g. with a negative refractive index;

(c) high entropy alloys (HEA);

(d) Heusler compounds;

(e) Kitaev materials, including kitaev spin liquids.

8.   Conjugated polymers (conductive, semiconductive, electroluminescent) for printed or organic electronics.

9.   Energetic materials as follows and mixtures thereof, except where the material is incorporated in a medical product—

(a) ammonium picrate (CAS 131-74-8);

(b) black powder;

(c) hexanitrodiphenylamine (CAS 131-73-7);

(d) difluoroamine (CAS 10405-27-3);

(e) nitrostarch (CAS 9056-38-6);

(f) tetranitronaphthalene;

(g) trinitroanisole;

(h) trinitronaphthalene;

(i) trinitroxylene;

(j) N-pyrrolidinone; 1-methyl-2-pyrrolidinone (CAS 872-50-4);

(k) dioctylmaleate (CAS 142-16-5);

(l) ethylhexylacrylate (CAS 103-11-7);

(m) triethylaluminium (TEA) (CAS 97-93-8), trimethylaluminium (TMA) (CAS 75-24-1), and other pyrophoric metal alkyls and aryls of lithium, sodium, magnesium, zinc or boron;

(n) nitroglycerin (or glyceroltrinitrate, trinitroglycerine) (NG) (CAS 55-63-0);

(o) Ethylenediaminedinitrate (EDDN) (CAS 20829-66-7);

(p) lead azide (CAS 13424-46-9), normal lead styphnate (CAS 15245-44-0) and basic lead styphnate (CAS 12403-82-6), and primary explosives or priming compositions containing azides or azide complexes;

(q) diethyldiphenylurea (CAS 85-98-3); dimethyldiphenylurea (CAS 611-92-7); methylethyldiphenyl urea;

(r) N,N-diphenylurea (unsymmetrical diphenylurea) (CAS 603-54-3);

(s) methyl-N,N-diphenylurea (methyl unsymmetrical diphenylurea) (CAS 13114-72-2);

(t) ethyl-N,N-diphenylurea (ethyl unsymmetrical diphenylurea) (CAS 64544-71-4);

(u) 4-Nitrodiphenylamine (4-NDPA)(CAS 836-30-6);

(v) 2,2-dinitropropanol (CAS 918-52-5).

Note: For the purpose of this entry, “medical product” means (1) a pharmaceutical formulation designed for human administration in the treatment of medical conditions, and (2) prepackaged for distribution as a clinical or medical product.

10.   “Technology” “required” for the “development”, “production” or “use” of the systems, equipment, components and software specified in paragraphs 1 to 8.

11.   “Software” specially designed or modified for the “development”, “production” or “use” of the systems, equipment and components specified in paragraphs 3 to 6.”

Regulation 20(3)

SCHEDULE 2 Insertion of Schedule 3J to the Russia (Sanctions) (EU Exit) Regulations 2019

Regulation 54B

“SCHEDULE 3J Professional and business services

Interpretation

1.— (1) For the purpose of this Schedule, a service falls within a code of a particular Central Product Classification if it is, or would be, classified under that code in accordance with the provisions on interpretation set out in the relevant Central Product Classification specified in sub-paragraph (2).

(2) In this Schedule—

“the 1991 Central Product Classification” means the Provisional Central Product Classification published by the United Nations in 1991, Statistical Papers Series M, No. 77(1);

“the 2002 Central Product Classification” means the Central Product Classification published by the United Nations in 2002, Statistical Papers Series M, No. 77, Version 1.1;

“the 2015 Central Product Classification” means the Central Product Classification published by the United Nations in 2015, Statistical Papers Series M, No. 77, Version 2.1.

Meaning of accounting services

2.   “Accounting services” means—

(a) accounting review services, which are services involving the review by a person of annual and interim financial statements and other accounting information, but excluding auditing services;

(b) compilation of financial statements services, which are services involving the compilation by a person of financial statements from information provided by a client, including preparation services of business tax returns when provided together with the preparation of financial statements for a single fee, but excluding such preparation services of business tax returns when provided as a separate service;

(c) other accounting services such as attestations, valuations, preparation services of pro forma statements;

(d) bookkeeping services, which are services consisting of classifying and recording business transactions in terms of money or some unit of measurement in the books of account, but excluding bookkeeping services related to tax returns.

Meaning of advertising services

3.   “Advertising services” means the services falling within code 836 of the 2002 Central Product Classification (advertising services) comprising—

(a) 83610 (planning, creating and placement services of advertising),

(b) 83620 (purchase or sale of advertising space or time, on commission),

(c) 83631 (sale of advertising space in print media (except on commission)),

(d) 83632 (sale of TV/radio advertising time (except on commission)),

(e) 83633 (sale of Internet advertising space (except on commission)),

(f) 83639 (sale of other advertising space or time (except on commission)), and

(g) 83690 (other advertising services).

Meaning of architectural services

4.   “Architectural services” means the services falling within the following codes of the 1991 Central Product Classification—

(a) 8671 (architectural services) comprising—

(i) 86711 (advisory and pre-design architectural services),

(ii) 86712 (architectural design services),

(iii) 86713 (contract administration services),

(iv) 86714 (combined architectural design and contract administration services), and

(v) 86719 (other architectural services);

(b) 8674 (urban planning and landscape architectural services) comprising—

(i) 86741 (urban planning services), and

(ii) 86742 (landscape architectural services).

Meaning of auditing services

5.   “Auditing services” means services consisting of examination of the accounting records and other supporting evidence of an organisation for the purpose of expressing an opinion as to—

(a) whether financial statements of the organisation present fairly its position as at a given date, and

(b) the results of its operations for the period ending on that date,

in accordance with generally accepted accounting principles.

Meaning of business and management consulting services

6.   “Business and management consulting services” means advisory, guidance and operational assistance services provided for business policy and strategy and the overall planning, structuring and control of an organisation, which includes (but is not limited to) management auditing, market management, human resources, production management and project management consulting.

Meaning of engineering services

7.   “Engineering services” means the services falling within the following codes of the 1991 Central Product Classification—

(a) 8672 (engineering services) comprising—

(i) 86721 (advisory and consultative engineering services),

(ii) 86722 (engineering design services for the construction of foundations and building structures),

(iii) 86723 (engineering design services for mechanical and electrical installations for buildings),

(iv) 86724 (engineering design services for the construction of civil engineering works),

(v) 86725 (engineering design services for industrial processes and production),

(vi) 86726 (engineering design services not elsewhere classified),

(vii) 86727 (other engineering services during the construction and installation phase), and

(viii) 86729 (other engineering services not elsewhere classified);

(b) 8673 (integrated engineering services) comprising—

(i) 86731 (integrated engineering services for transportation infrastructure turnkey projects),

(ii) 86732 (integrated engineering and project management services for water supply and sanitation works turnkey projects),

(iii) 86733 (integrated engineering services for the construction of manufacturing turnkey projects), and

(iv) 86739 (integrated engineering services for other turnkey projects);

(c) 8675 (engineering related scientific and technical consulting services) comprising—

(i) 86751 (geological, geophysical and other scientific prospecting services),

(ii) 86752 (subsurface surveying services),

(iii) 86753 (surface surveying services), and

(iv) 86754 (map making services);

(d) 8676 (technical testing and analysis services) comprising—

(i) 86761 (composition and purity testing and analysis services),

(ii) 86762 (testing and analysis services of physical properties),

(iii) 86763 (testing and analysis services of integrated mechanical and electrical systems),

(iv) 86764 (technical inspection services), and

(v) 86769 (other technical testing and analysis services).

Meaning of IT consultancy and design services

8.   “IT consultancy and design services” means the services falling within the following codes of the 2015 Central Product Classification—

(a) 83131 (IT consulting services);

(b) 83141 (IT design and development services for applications).

Meaning of public relations services

9.   “Public relations services” means services provided by a person related to improving the image of their clients and their relationship with the general public and other institutions, but excludes planning and creating advertising services or public opinion polling services.”

Regulation 20(4)

SCHEDULE 3 Insertion of Part 3A (Trust services) in Schedule 5 (Treasury licences: purposes) to the Russia (Sanctions) (EU Exit) Regulations 2019

“PART 3A Trust services

Extraordinary situation

20A.   To enable anything to be done to deal with an extraordinary situation.

Humanitarian assistance activity

20B.   To enable anything to be done in connection with the performance of any humanitarian assistance activity.

Medical goods or services

20C.— (1) To enable anything to be done in connection with the provision of medical goods or services for the benefit of the civilian population of a country.

(2) To enable the import, export or use of medical goods.

Food

20D.   To enable anything to be done in connection with the production or distribution of food for the benefit of the civilian population of a country.

Diplomatic missions etc.

20E.— (1) To enable anything to be done in order that the functions of a diplomatic mission or consular post in Russia, or of an international organisation enjoying immunities in accordance with international law, may be carried out.

(2) To enable anything to be done in order that the functions of a diplomatic mission or consular post of Russia in the United Kingdom may be carried out.

Safety and soundness of a firm

20F.   To enable anything to be done by a person, following consultation by that person (or a person acting on their behalf) with the relevant supervising authority or authorities, that is necessary or expedient in order to promote the safety and soundness of a firm which is supervised by the Bank of England, the Prudential Regulation Authority or the Financial Conduct Authority.

Financial regulation

20G.   To enable anything to be done by, or on behalf of, a relevant financial authority for the purposes of the functions of that authority.

Financial stability

20H.   To enable anything to be done by a person, following consultation by that person (or a person acting on their behalf) with the Bank of England, that is necessary or expedient in order to protect or enhance the stability of the financial system of the United Kingdom.

Unauthorised unit trust schemes

20I.— (1) To enable the provision of trust services by the operator or trustee of an unauthorised unit trust scheme in relation to that scheme, provided that the condition in sub-paragraph (2) is met.

(2) The condition in this sub-paragraph is that the trust services are not provided primarily to or for the benefit of a designated person or a person connected with Russia.

(3) Terms used in this paragraph are to be construed in accordance with regulation 60ZZB.”

Regulation 21

SCHEDULE 4 Minor amendments

PART 1

1.  In regulation 46Z7 (technical assistance relating to oil and oil products), for paragraph (1) substitute—

“(1) A person must not, on or after the relevant day, directly or indirectly provide technical assistance relating to—

(a) the import of oil and oil products which—

(i) originate in Russia, or

(ii) are consigned from Russia;

(b) the direct or indirect acquisition of oil and oil products which—

(i) originate in Russia, or

(ii) are located in Russia,

with the intention of those goods entering the United Kingdom;

(c) the direct or indirect supply or delivery of oil and oil products from a place in Russia into the United Kingdom.”

2.  In regulation 46Z8 (financial services and funds relating to oil and oil products), for paragraph (1) substitute—

“(1) A person must not, on or after the relevant day, directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the import of oil and oil products which—

(i) originate in Russia, or

(ii) are consigned from Russia;

(b) the direct or indirect acquisition of oil and oil products which—

(i) originate in Russia, or

(ii) are located in Russia,

with the intention of those goods entering the United Kingdom;

(c) the direct or indirect supply or delivery of oil and oil products from a place in Russia into the United Kingdom.”

3.  In regulation 46Z15 (financial services and funds relating to gold), for paragraph (1) substitute—

“(1) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the import of gold which on or after the relevant day—

(i) originated in Russia, or

(ii) is consigned from Russia;

(b) the direct or indirect acquisition of gold which on or after the relevant day—

(i) originated in Russia, and

(ii) is located in Russia,

with the intention of that gold entering the United Kingdom;

(c) the direct or indirect supply or delivery of gold, which originated in Russia on or after the relevant day—

(i) from a place in Russia, or

(ii) from a third country,

to the United Kingdom.”

4.  In regulation 46Z16E (technical assistance relating to gold jewellery), for paragraph (1) substitute—

“(1) A person must not directly or indirectly provide technical assistance relating to—

(a) the import of gold jewellery which on or after the relevant day—

(i) originated in Russia, or

(ii) is exported from Russia;

(b) the direct or indirect acquisition of gold jewellery which—

(i) originated in Russia, or

(ii) is located in Russia or, on or after the relevant day, has been exported from Russia,

with the intention of that gold jewellery entering the United Kingdom.”

5.  In regulation 46Z16G (financial services and funds relating to gold jewellery), for paragraph (1) substitute—

“(1) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the import of gold jewellery which on or after the relevant day—

(i) originated in Russia, or

(ii) is exported from Russia;

(b) the direct or indirect acquisition of gold which on or after the relevant day—

(i) originated in Russia, or

(ii) is located in Russia,

with the intention of that gold jewellery entering the United Kingdom.”

6.  In regulation 46Z21 (technical assistance relating to coal and coal products), for paragraph (1) substitute—

“(1) A person must not, on or after the relevant day, directly or indirectly provide technical assistance relating to—

(a) the import of coal and coal products which—

(i) originate in Russia, or

(ii) are consigned from Russia;

(b) the direct or indirect acquisition of coal and coal products which—

(i) originate in Russia, or

(ii) are located in Russia,

with the intention of those goods entering the United Kingdom;

(c) the direct or indirect supply or delivery of coal and coal products from a place in Russia into the United Kingdom.”

7.  In regulation 46Z22 (financial services and funds relating to coal and coal products), for paragraph (1) substitute—

“(1) A person must not, on or after the relevant day, directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the import of coal and coal products which—

(i) originate in Russia, or

(ii) are consigned from Russia;

(b) the direct or indirect acquisition of coal and coal products which—

(i) originate in Russia, or

(ii) are located in Russia,

with the intention of those goods entering the United Kingdom;

(c) the direct or indirect supply or delivery of coal and coal products from a place in Russia into the United Kingdom.”

8.  In regulation 86 (trade offences in CEMA: modification of penalty)—

(a) in paragraph (1)—

(i) for “46Z16C”, substitute “46Z16C,”;

(ii) for “46Z25,” substitute “, 46Z25”;

(b) in paragraph (5), for “46Z18” substitute “46Z18,”.

PART 2

9.  In regulation 46Z27 (technical assistance relating to liquefied natural gas), for paragraph (1) substitute—

“(1) A person must not directly or indirectly provide technical assistance relating to—

(a) the import of liquefied natural gas which—

(i) originates in Russia, or

(ii) is consigned from Russia;

(b) the direct or indirect acquisition of liquefied natural gas which—

(i) originates in Russia, or

(ii) is located in Russia,

with the intention of the liquefied natural gas entering the United Kingdom.”

10.  In regulation 46Z28 (financial services and funds relating to liquefied natural gas), for paragraph (1) substitute—

“(1) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the import of liquefied natural gas which—

(i) originates in Russia, or

(ii) is consigned from Russia;

(b) the direct or indirect acquisition of liquefied natural gas which—

(i) originates in Russia, or

(ii) is located in Russia,

with the intention of the liquefied natural gas entering the United Kingdom.”

(1)

Each version of the Central Product Classification is available at this link https://unstats.un.org/unsd/classifications/Econ/cpc. A hard copy of the appropriate version of the Code can be inspected at the Department for Business, Energy and Industrial Strategy at 1 Victoria Street, London SW1H 0ET.