(This note is not part of the Order)
This Order makes provision for the enforcement of certain trade restrictions against Russia specified in Council Regulation (EU) No 833/2014 (OJ No L 229, 31.7.2014, p1) (“the Russian Sanctions Regulation”). It also provides for the enforcement of trade and investment restrictions in response of the illegal annexation of Crimea and Sevastopol specified in Council Regulation (EU) No 692/2014 (OJ No L 183, 24.6.2014, p9) as amended by Council Regulation (EU) No 825/2014 (OJ No L 226, 30.7.14, p2) (“the Crimea and Sevastopol Regulation”). The Order sets out offences in relation to these prohibitions and those offences can be committed by any person in the United Kingdom and, around the world, by any United Kingdom person, as defined in section 11 of the Export Control Act 2002(c. 28).
The trade measures against Russia include restrictions on the export or supply of certain dual-use goods as well as on certain services related to the supply of arms and military equipment. There are also restrictions on the export or supply of certain technologies for the oil industry in Russia as listed in Annex II to the Russian Sanctions Regulation.
The trade sanctions against Crimea and Sevastopol include a ban on new investments related to infrastructure in the sectors of transport, telecommunications and energy and the exploitation of natural resources in Crimea and Sevastopol and an export ban on key equipment and technology related to those sectors.
Articles 3 to 5 create offences for contravention of the trade restrictions in Articles 2 to 4 of the Russia Sanctions Regulation. Articles 6 to 8 create offences for contravention of the restrictions in Articles 2(b) and 2a to 2c of the Crimea and Sevastopol Regulation. There are already offences relating to prohibited importation and exportation of goods in sections 50, 68 and 170 of the Customs and Excise Management Act 1979 (“the 1979 Act”)(1979 c.2).
Article 4(1) clarifies the scope of the control on exportation of technologies in Article 3 of the Russia Sanctions Regulation (which requires authorisation for the export of technologies listed in Annex II) so as to ensure that breaches of the export control created by that Article are amenable to action under the 1979 Act.
Article 9 creates offences for the circumvention of the prohibitions in the Russia Sanctions Regulation or the Crimea and Sevastopol Regulation.
Article 10 supplements the provisions of the Russia Sanctions Regulation that allow a competent authority to authorise activities that are otherwise prohibited. Article 10(1) makes it an offence knowingly and recklessly to provide false information for the purpose of obtaining an authorisation and Article 10(3) makes it an offence to fail to comply with authorisation requirements or conditions.
Article 11 sets out the penalties relating to the offences in the Order and makes some consequential modifications to the 1979 Act to ensure that the offences covered by that Act are subject to the same penalties as those in the Order.
Article 12 provides for the ancillary provisions which apply to the enforcement of customs and excise legislation to also apply to the enforcement of this Order.
Article 13 amends Part 2 of Schedule 4 to the Export Control Order 2008 (S.I. 2008/3231) to designate Russia as an “embargoed destination” for the purposes of application of stricter trade controls under that Order.
Article 14 requires the Secretary of State to review the operation and effect of the Order and publish a report within five years after the Order comes into force and within every five years after that. Following a review it will fall to the Secretary of State to consider whether the Order should remain as it is, or be revoked or amended. A further instrument would be needed to revoke the Order or to amend it.
A regulatory impact assessment has not been produced for this instrument as it has no or minimal impact on business, charities or voluntary bodies. A copy of the Explanatory Memorandum is published alongside the Order on www.legislation.gov.uk. Further information is available from the Export Control Organisation, BIS, 1 Victoria Street, London SW1H 0ET and on the gov.uk website (www.gov.uk).
