A person (“P”) must not directly or indirectly grant a relevant loan if P knows, or has reasonable cause to suspect, that P is granting a relevant loan.

A person must not directly or indirectly enter into any arrangement to grant a relevant loan if the person knows, or has reasonable cause to suspect, that the arrangement relates to a relevant loan.

A person must not make funds or economic resources available to a relevant entity (“E”) where the purposes of making those funds or economic resources available is to enable E to grant a relevant loan on or after 16th December 2022.

Paragraphs (1) F2, (2) and (2A) are subject to F14Part 7 (Exceptions and licences).

A person who contravenes a prohibition in paragraph (1) F13, (2) or (2A) commits an offence.

In this regulation—

• F9...

• F19“category 1 loan” means a loan or credit—

  1. a

     with a maturity exceeding 30 days,

  2. b

     made or granted to—

     1. i

        a person falling within Schedule 2,

     2. ii

        a person, other than an individual, which is—

        1. aa

           incorporated or constituted under the law of a non-UK country, and

        2. bb

           owned F16... by a person within paragraph (i), or

     3. iii

        a person, other than an individual, acting on behalf or at the direction of a person within paragraph (i) or paragraph (ii), and

  3. c

     which is first made or granted at any time after IP completion day;

• “category 2 loan” means a loan or credit—

  1. a

     with a maturity exceeding 30 days,

  2. b

     made or granted to a person, other than an individual, which is—

     1. i

        incorporated or constituted under the law of any part of the United Kingdom, and

     2. ii

        owned F11... by a person falling within Schedule 2, and

  3. c

     which is first made or granted at any time on or after 1st March 2022;

• “category 3 loan” means a loan or credit—

  1. a

     with a maturity exceeding 30 days,

  2. b

     made or granted to a person, other than an individual, which is—

     1. i

        connected with Russia,

     2. ii

        owned F10... by a person within sub-paragraph (i), or

     3. iii

        a person, other than an individual, acting on behalf or at the direction of a person within paragraph (i) or paragraph (ii),

  3. c

     F7which is first made or granted at any time on or after 1st March 2022 but before F329th October 2022, and,

  4. d

     which is not—

     1. i

        a category 1 loan, a category 2 loan or a category 4 loan, or

     2. ii

        a loan made or granted to—

        1. aa

           a person, other than an individual, which on 1st March 2022 is domiciled in a country other than Russia,

        2. bb

           a person, other than an individual, which is owned by a person falling within sub-paragraph (aa), or

        3. cc

           a person, other than an individual, acting on behalf or at the direction of a person within sub-paragraph (aa) or sub-paragraph (bb);

• “category 4 loan” means a loan or credit—

  1. a

     made or granted to the Government of Russia,

  2. b

     which is first made or granted at any time on or after 1st March 2022;

• F4“category 5 loan” means a loan or credit—

  1. a

     with a maturity exceeding 30 days,

  2. b

     made or granted to a person, other than an individual—

     1. i

        which is connected with Russia, other than—

        1. aa

           a person which on F529th October 2022 is incorporated or constituted in a country other than Russia, or

        2. bb

           a person which is owned by a person falling within paragraph (aa),

     2. ii

        a person which is owned by a person within sub-paragraph (i), or

     3. iii

        a person which is owned by a person connected with Russia who is an individual,

  3. c

     which is first made or granted at any time on or after F529th October 2022, and

  4. d

     which is not a category 1 loan, a category 2 loan, a category 3 loan or a category 4 loan.

• F20“category 6 loan” means a loan or credit—

  1. a

     made or granted to a relevant entity,

  2. b

     which is for the purposes of an activity mentioned in regulation 18B(2),

  3. c

     which is first made or granted at any time on or after 16th December 2022, and

  4. d

     which is not a category 1 loan, a category 2 loan, a category 3 loan, a category 4 loan or a category 5 loan;

• “non-UK country” means a country that is not the United Kingdom;

• F18“owned” means owned within the meaning of regulation 16(7);

• F12“relevant entity” has the meaning given in regulation 18B(8);

• F17“relevant loan” means a category 1 loan, a category 2 loan, a category 3 loan F15, a category 4 loan F1, a category 5 loan or a category 6 loan;

• F8...