The Russia (Sanctions) (EU Exit) Regulations 2019

Financial services and funds relating to dual-use goods and dual-use technology

37.—(1) A person must not directly or indirectly provide, to a person connected with Russia, financial services in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of dual-use goods for military use,

(b) the direct or indirect supply or delivery of dual-use goods for military use,

(c) directly or indirectly making dual-use goods for military use or dual-use technology for military use available to a person,

(d) the transfer of dual-use technology for military use, or

(e) the direct or indirect provision of technical assistance relating to dual-use goods for military use or dual-use technology for military use.

(2) A person must not directly or indirectly make funds available to a person connected with Russia in pursuance of or in connection with an arrangement mentioned in paragraph (1).

(3) A person must not directly or indirectly provide, to a person mentioned in Schedule 4, financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of dual-use goods,

(b) the direct or indirect supply or delivery of dual-use goods,

(c) directly or indirectly making dual-use goods or technology available to a person,

(d) the transfer of dual-use technology, or

(e) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology.

(4) 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 export to Russia of dual-use goods for military use;

(b) the export of dual-use goods for military use in Russia;

(c) the export of dual-use goods to or for use by a person mentioned in Schedule 4;

(d) the direct or indirect supply or delivery of dual-use goods for military use to a place in Russia;

(e) the direct or indirect supply or delivery of dual-use goods to or for use by a person mentioned in Schedule 4;

(f) directly or indirectly making available, to a person connected with Russia, dual-use goods for military use or dual-use technology for military use;

(g) directly or indirectly making available dual-use goods for military use in Russia or dual-use technology for military use in Russia;

(h) directly or indirectly making dual-use goods or dual-use technology available to or for use by a person mentioned in Schedule 4.

(i) the transfer of dual-use technology for military use—

(i) to a person connected with Russia, or

(ii) to a place in Russia;

(j) the transfer of dual-use technology to a person mentioned in Schedule 4;

(k) the direct or indirect provision of technical assistance relating to dual-use goods for military use or dual-use technology for military use to a person connected with Russia;

(l) the direct or indirect provision of technical assistance relating to dual-use goods for military use in Russia or dual-use technology for military use in Russia;

(m) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology to a person mentioned in Schedule 4;

(n) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology for use by a person mentioned in Schedule 4.

(5) Paragraphs (1) to (4) are subject to Part 7 (Exceptions and licences).

(6) A person who contravenes a prohibition in any of paragraphs (1) to (4) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening a prohibition in paragraph (1) or (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Russia;

(b) it is a defence for a person charged with an offence of contravening a prohibition in paragraph (3) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was a person mentioned in Schedule 4;

(c) it is a defence for a person charged with an offence of contravening a prohibition in paragraph (4) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph.