Council Regulation (EU) No 1351/2014Show full title

Council Regulation (EU) No 1351/2014

of 18 December 2014

amending Regulation (EU) No 692/2014 concerning restrictive measures in response to the illegal annexation of Crimea and Sevastopol

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 2014/386/CFSP of 23 June 2014 concerning restrictive measures in response to the illegal annexation of Crimea and Sevastopol(1),

Having regard to the joint proposal of the High Representative of the Union for Foreign Affairs and Security Policy and of the European Commission,

Whereas:

(1) Council Regulation (EU) No 692/2014(2) gives effect to certain measures provided for in Decision 2014/386/CFSP in particular restrictions on goods originating in Crimea or Sevastopol and on the provision of financing or financial assistance related to the import of such goods, as well as restrictions in trade and investment concerning infrastructure projects in the transport, telecommunications and energy sector and concerning the exploitation of oil, gas and minerals.

(2) In line with United Nations General Assembly Resolution 68/262 of 27 March 2014, Crimea and Sevastopol continue to be considered as part of Ukraine. The Foreign Affairs Council of 17 and 18 November 2014 reiterated that the EU condemns and will not recognise the illegal annexation of Crimea and Sevastopol.

(3) On 18 December 2014, the Council adopted Decision 2014/933/CFSP(3) which amends Decision 2014/386/CFSP to provide for a ban on all foreign investments in Crimea or Sevastopol. That Decision also provides for a prohibition on services directly related to the investment ban, as well as services related to tourism activities, including in the maritime sector, and in the sectors of transport, telecommunications, energy and exploitation of oil, gas and minerals in Crimea or Sevastopol. The former export prohibition on goods and technology in the sectors of transport, telecommunications, energy and exploitation of oil, gas and minerals, is broadened.

(4) In order to minimise the effect of such restrictive measures on economic operators and on the civilian population in Crimea or Sevastopol, exceptions and transitional periods should be provided.

(5) For the purpose of this Regulation, the place of use of goods and technology should be determined on the basis of an assessment of objective elements, including, but not limited to, the destination of the shipment, the postal codes of delivery, any indication on the place of consumption and documented indication by the importer. The notion of place of use should apply to goods or technology that are used continuously in Crimea or Sevastopol.

(6) The prohibitions and restrictions in this Regulation cannot be construed as prohibiting or restricting the transit through the territory of Crimea or Sevastopol performed by natural or legal persons of the Union or entities of the Union.

(7) The prohibitions and restrictions in this Regulation do not apply to the conduct of legitimate business with entities outside Crimea or Sevastopol that operate within Crimea or Sevastopol where there are no reasonable grounds to determine that the related goods or services are for use in Crimea or Sevastopol or where the related investments are not destined to enterprises or any subsidiary or affiliate under their control in Crimea or Sevastopol.

(8) The prohibition on providing services directly related to tourism activities, including cruise services, cannot be construed as covering services provided for the purposes of maritime safety, security and emergency, such as maintenance, repair, electronic identification and communication systems, or insurance.

(9) Those measures fall within the scope of the Treaty and, therefore, particularly with a view to ensuring its uniform application in all Member States, regulatory action at the level of the Union is necessary, following the adoption of Decision 2014/933/CFSP. Regulation (EU) No 692/2014 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

(1)

OJ L 183, 24.6.2014, p. 70.

(2)

Council Regulation (EU) No 692/2014 of 23 June 2014 concerning restrictive measures in response to the illegal annexation of Crimea and Sevastopol (OJ L 183, 24.6.2014, p. 9).

(3)

Council Decision 2014/933/CFSP of 18 December 2014 amending Decision 2014/386/CFSP concerning restrictive measures in response to the illegal annexation of Crimea and Sevastopol (see page 152 of this Official Journal).