Article 1 · Council Regulation (EU) 2023/427

Contents

Article 1 #

Regulation (EU) No 833/2014 is amended as follows:

(1)in Article 1, the following points are added:

(y)“critical entities” means entities as defined in Article 2(1) of Directive (EU) 2022/2557 of the European Parliament and of the Council^note;

(z)“critical infrastructure” means infrastructure as defined in Article 2(a) of Council Directive 2008/114/EC^note and Article 2(4) of Directive (EU) 2022/2557;

(za)“European critical infrastructure” means infrastructure as defined in Article 2(b) of Directive 2008/114/EC;

(zb)“owners or operators of critical infrastructures” means those entities responsible for investments in, and/or day-to-day operation of, a particular asset, system or part thereof designated as critical infrastructure or European critical infrastructure.

(2)in Article 2, the following paragraphs are inserted:‘1a.The transit via the territory of Russia of the dual-use goods and technology, as referred to in paragraph 1, exported from the Union shall be prohibited.3a.Without prejudice to the authorisation requirements pursuant to Regulation (EU) 2021/821, the prohibition in paragraph 1a of this Article shall not apply to the transit via the territory of Russia of dual-use goods and technology intended for the purposes set out in points (a) to (e) of paragraph 3 of this Article.4a.By way of derogation from paragraph 1a, and without prejudice to the authorisation requirements pursuant to Regulation (EU) 2021/821, the competent authorities may authorise the transit via the territory of Russia of dual-use goods and technology after having determined that such goods or technology are intended for the purposes set out in points (b), (c), (d), and (h) of paragraph 4 of this Article.’;

(3)in Article 2aa, the following paragraph is inserted:‘1a.The transit via the territory of Russia of firearms, their parts and essential components and ammunition, as referred to in paragraph 1, exported from the Union shall be prohibited.’;

(4)in Article 3c, the following paragraph is added:‘5c.With regard to the goods listed in Part D of Annex XI, the prohibitions in paragraphs 1 and 4 shall not apply to the execution until 27 March 2023 of contracts concluded before 26 February 2023, or of ancillary contracts necessary for the execution of such contracts.’;

(5)in Article 3d, the following paragraphs are added:‘5.Aircraft operators of non-scheduled flights between Russia and the Union, operated directly or via a third country, shall notify all relevant information concerning the flight to their competent authorities prior to their operation, and at least 48 hours in advance.6.Upon refusal of a flight notified in accordance with paragraph 5, the Member State concerned shall immediately inform the other Member States, the Network Manager and the Commission.’;

(6)Article 3i is amended as follows:

(a)the following paragraphs are inserted:‘3d.With regard to the goods listed in Part C of Annex XXI, the prohibitions in paragraphs 1 and 2 shall not apply to the execution until 27 May 2023 of contracts concluded before 26 February 2023, or of ancillary contracts necessary for the execution of such contracts.This provision does not apply to goods falling under CN codes 2803 and 4002 as listed in Part C of Annex XXI, to which paragraph 3da applies.3da.The prohibitions in paragraphs 1 and 2 shall not apply to the import, purchase or transport, or related technical or financial assistance, necessary for the import into the Union, until 30 June 2024, of the following quantities:

(a)752475 metric tonnes for goods falling under CN code 2803;

(b)562973 metric tonnes for goods falling under CN code 4002.’

;

(b)paragraph 5 is replaced by the following:‘5.The import volume quotas set out in paragraphs 3da and 4 of this Article shall be managed by the Commission and the Member States in accordance with the management system for tariff-rate quotas provided for in Articles 49 to 54 of Commission Implementing Regulation (EU) 2015/2447^note.

(7)Article 3k is amended as follows:

(a)the following paragraphs are inserted:‘3c.With regard to the goods listed in Part C of Annex XXIII, the prohibitions in paragraphs 1 and 2 shall not apply to the execution until 27 March 2023 of contracts concluded before 26 February 2023, or of ancillary contracts necessary for the execution of such contracts.This provision does not apply to goods falling under CN codes 720825, 720890, 720925, 720928, 721924 as listed in Part C of Annex XXIII, to which paragraph 3 applies.5b.By way of derogation from paragraphs 1 and 2, the competent authorities may authorise, under such conditions as they deem appropriate, the sale, supply, transfer or export of the goods listed in Part C of Annex XXIII, or related technical assistance, brokering services, financing or financial assistance, after having determined that it is strictly necessary for the production of titanium goods required in the aeronautic industry, for which no alternative supply is available.’;

(b)paragraphs 5a and 6 are replaced by the following:‘5a.The competent authorities of the Member States may authorise, under such conditions as they deem appropriate, the sale, supply, transfer or export of the goods falling under CN code 841720, or the provision of related technical or financial assistance, after having determined that such goods or the provision of related technical or financial assistance are necessary for personal household use of natural persons.6.When deciding on requests for authorisations referred to in paragraphs 5, 5a and 5b, the competent authorities shall not grant an authorisation for exports to any natural or legal person, entity or body in Russia or for use in Russia, if they have reasonable grounds to believe that the goods might have a military end-use.’;

(8)in Article 5a, the following paragraphs are inserted:‘4a.Notwithstanding the applicable rules concerning reporting, confidentiality and professional secrecy, natural and legal persons, entities and bodies, including the European Central Bank, national central banks, financial sector entities as defined in Article 4 of Regulation (EU) No 575/2013 of the European Parliament and of the Council^note, insurance and reinsurance undertakings as defined in Article 13 of Directive 2009/138/EC of the European Parliament and of the Council^note, central securities depositories as defined in Article 2 of Regulation (EU) No 909/2014 and central counterparties as defined in Article 2 of Regulation (EU) No 648/2012 of the European Parliament and of the Council^note shall provide, no later than two weeks after 26 February 2023, to the competent authority of the Member State where they are resident or located, and simultaneously to the Commission, information on the assets and reserves referred to in paragraph 4 of this Article which they hold or control or are a counterparty to. Such information shall be updated every three months and shall at least cover the following:

(a)information identifying the natural or legal persons, entities or bodies owning, holding or controlling such assets and reserves, including the name, address and VAT registration or tax identification number;

(b)the amount or market value of such assets and reserves at the date of reporting and at the date of immobilisation;

(c)types of the assets and reserves, broken down according to the categories set out in points (i) to (vii) of Article 1(g) of Council Regulation (EU) 269/2014^note as well as crypto-assets and other relevant categories, and an additional category corresponding to economic resources within the meaning of Article 1(d) of Regulation (EU) 269/2014. For each of those categories and where available, relevant features, such as quantity, location, currency, maturity and contractual conditions between the reporting entity and the asset owner shall be indicated.

4b.Where the reporting natural or legal person, entity or body has established an extraordinary and unforeseen loss or damage to the assets and reserves referred to in paragraph 4a, this information shall be reported immediately to the competent authority of the relevant Member State and transmitted simultaneously to the Commission.4c.Member States, as well as the natural and legal persons, entities and bodies covered by the reporting obligation set out in paragraph 4a, shall cooperate with the Commission in any verification of the information received pursuant to that paragraph. The Commission may request any additional information it requires to carry out such verification. When such a request is addressed to a natural or legal person, entity or body, the Commission shall simultaneously transmit it to the competent authority of the relevant Member State. Any additional information received directly by the Commission shall be made available to the competent authority of the relevant Member State.4d.Any information provided to or received by the Commission and the competent authorities of the Member States in accordance with this Article shall be used by the Commission and the competent authorities of the Member States only for the purposes for which it was provided or received.4e.Any processing of personal data shall be carried out in accordance with this Regulation and Regulations (EU) 2016/679^note and (EU) 2018/1725^note of the European Parliament and of the Council and only in so far as necessary for the application of this Regulation and to ensure effective cooperation between Member States as well as with the Commission in the application of this Regulation.

(9)in Article 5aa, paragraph 3, point (d) is replaced by the following:

(d)transactions, including sales, which are strictly necessary for the wind-down, by 31 December 2023, of a joint venture or similar legal arrangement concluded before 16 March 2022, involving a legal person, entity or body referred to in paragraph 1;’;

(10)in Article 5aa, paragraph 3, the following point is added:

(h)the provision of pilot services to vessels in innocent passage as defined by international law which are necessary for reasons of maritime safety;’;

(11)in Article 5aa, paragraph 3a is replaced by the following:‘3a.By way of derogation from paragraph 1, the competent authorities may authorise, under such conditions as they deem appropriate, transactions which are strictly necessary for the divestment and withdrawal by 31 December 2023, by the entities referred to in paragraph 1 or their subsidiaries in the Union from a legal person, entity or body established in the Union.’;

(12)the following Articles are inserted:‘Article 5o1.It shall be prohibited as of 27 March 2023 to allow Russian nationals or natural persons residing in Russia to hold any posts in the governing bodies of the owners or operators of critical infrastructures, European critical infrastructures and critical entities.2.Paragraph 1 shall not apply to nationals of a Member State, of a country member of the European Economic Area or of Switzerland.Article 5p1.It shall be prohibited to provide storage capacity as defined in Article 2(1), point 28 of Regulation (EC) No 715/2009 of the European Parliament and of the Council^note in a storage facility as defined in Article 2, point 9 of Directive 2009/73/EC of the European Parliament and of the Council^note, except for the part of liquefied natural gas facilities used for storage, to:

(a)a Russian national, a natural person residing in Russia, or a legal person, entity or body established in Russia;

(b)a legal person, entity or body whose proprietary rights are directly or indirectly owned for more than 50 % by a legal person, entity or body referred to in point (a) of this paragraph; or

(c)a natural or legal person, entity or body acting on behalf or at the direction of a legal person, entity or body referred to in point (a) or (b) of this paragraph.

2.Paragraph 1 shall not apply to the operations that are strictly necessary for the termination by 27 March 2023 of contracts which are not compliant with this Article concluded before 26 February 2023 or of ancillary contracts necessary for the execution of such contracts.3.By way of derogation from paragraph 1, the competent authorities may authorise, under such conditions as they deem appropriate, the provision of storage capacity as referred to in paragraph 1 after having determined that it is necessary for ensuring critical energy supply within the Union.4.The Member State or Member States concerned shall inform the other Member States and the Commission of any authorisation granted under paragraph 3 within two weeks of the authorisation.

(13)in Article 12b, the following paragraph is inserted:‘2a.By way of derogation from Article 5n, the competent authorities may authorise the continuation of the provision of services listed therein until 31 December 2023 where such provision of services is strictly necessary for the divestment from Russia or the wind-down of business activities in Russia, provided that the following conditions are fulfilled:

(a)such services are provided to and for the exclusive benefit of the legal persons, entities or bodies resulting from the divestment; and

(b)the competent authorities deciding on requests for authorisations have no reasonable grounds to believe that the services might be provided, directly or indirectly, to the Government of Russia or a military end-user or have a military end-use in Russia.’

;

(14)in Article 12b, paragraph 3 is replaced by the following:‘3.The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under paragraph 1, 2 or 2a within two weeks of the authorisation.’;

(15)the following Articles are inserted:‘Article 12dThe prohibitions on providing technical assistance laid down in this Regulation shall not apply to the provision of pilot services to vessels in innocent passage as defined by international law which are necessary for reasons of maritime safety.Article 12e1.For the purposes of the prohibitions on importing goods provided for in this Regulation, goods physically in the Union may be released as provided for in Article 5, point (26) of the Union Customs Code^note by the customs authorities provided that they have been presented to customs in accordance with Article 134 of the Union Customs Code before the entry into force or applicability date of the respective import prohibitions, whichever is latest.2.All procedural steps necessary for the release referred to in paragraphs 1 and 5 of the relevant goods pursuant to the Union Customs Code shall be allowed.3.The customs authorities shall not allow the release of the goods if they have reasonable grounds to suspect circumvention and shall not authorise the re-export of the goods to Russia.4.Payments in relation to such goods shall be consistent with the provisions and objectives of this Regulation, in particular the prohibition on purchasing, and Regulation (EU) No 269/2014.5.Goods physically in the Union and presented to customs prior to 26 February 2023 which were stopped in application of this Regulation may be released by the customs authorities under the conditions provided for in paragraphs 1, 2, 3 and 4.

(16)Annex IV is amended in accordance with Annex I to this Regulation;

(17)Annex VII is amended in accordance with Annex II to this Regulation;

(18)Annex VIII is amended in accordance with Annex III to this Regulation;

(19)Annex XI is amended in accordance with Annex IV to this Regulation;

(20)Annex XV is amended in accordance with Annex V to this Regulation.Point 20 shall apply in respect of one or several of the entities referred to in Annex V to this Regulation as from 10 April 2023 and provided that the Council, having examined the respective cases, so decides by implementing act;

(21)Annex XXI is amended in accordance with Annex VI to this Regulation;

(22)Annex XXIII is amended in accordance with Annex VII to this Regulation.

Article 1#

Article 1 #