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The UK imposes new trade, shipping and financial sanctions on Russia

1 March 2022

The UK made four new amendments to The Russia (Sanctions) (EU Exit) Regulations 2019 (Russia Regulations) on March 1st 2022. These amendments revise financial and investment restrictions provisions specified in Chapter 2, Part 3 and trade sanctions provisions specified in Part 5. In addition, new measures banning Russian ships from UK ports and new restrictions on the provision of financial services for the purpose of asset management and foreign exchange reserve have been introduced. Furthermore, additional asset freezes have been imposed on Russian individuals and entities. 

On March 1st 2022, under The Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2022, new restrictions on the provision of financial services for the purpose of asset management and foreign exchange reserve have been introduced. These measures prohibit UK individuals or entities from providing financial services for the aforementioned purposes to the Central Bank of Russia, National Wealth Fund of the RF, the Russian Ministry of Finance, or to persons owned or controlled by these or acting on behalf of these institutions. 

In addition, on this date, several new export control measures were introduced within The Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2022. The existing ban on the export, supply and delivery, making available and transfer of military goods and technology to and for use in the RF was expanded and now also includes dual-use goods and technology and critical-industry goods and technology. The latter, are described in Schedule 2A and include several electronics, computers, telecommunications equipment and other several items broadly aligned with a similar list of items enacted by the EU on February 25th. The prohibition on the provision of financial services, technical assistance, funds and brokering services have also been extended to the additional categories of technologies and goods. 

Regarding the shipping sector, on March 1st, within The Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2022 a ban was introduced on Russian ships from UK ports. This ban prohibits Russian ships and other ships to be specified by the Secretary of State from entering ports of the UK.

More information on the new general licenses, restrictions and regulations adopted by the UK on March 1st can be found here.