Changes to the Russia/Ukraine Regulations as of 23 May 2023

Given the developing situation in Ukraine, Central Bank of Ireland will publish details of new restrictive measures/sanctions that are adopted in this regard, as well as any associated EU Guidance, on this page. All natural and legal persons must comply with EU Regulations relating to financial sanctions as soon as they are adopted. While sanctions are applicable to all natural and legal persons, given the nature of the activities carried out by credit and financial institutions, some additional guidance is provided below for this sector.

The European Commission has a dedicated webpage, entitled Sanctions adopted following Russia’s military aggression against Ukraine , which contains information on the various sanctions adopted, including Frequently Asked Questions. The page is regularly updated. Therefore, natural and legal persons are encouraged to regularly visit this page for the latest information.

23 May 2023

On 22 May 2023, following a request from the EU Commission, the European Banking Authority (the “EBA”) updated its templates to be used for the second annual reporting of information relating to certain deposits that exceed EUR 100,000 (the “Deposit Prohibition”). The EBA has made the templates available for voluntary use by the relevant national competent authorities and by the EU Commission, with the aim to promote a convergent approach and to reduce any associated reporting costs, especially for cross-border banks. With this in mind, the Central Bank has updated the Sanctions Reporting webpage to provide that Irish credit institutions should use the EBA reporting templates when reporting the Deposit Prohibition information. Further information is available on the Sanctions Reporting webpage.

9 May 2023

On 26 April 2023, the European Commission published an update to its Frequently Asked Questions concerning sanctions adopted following Russia’s military aggression against Ukraine and Belarus' involvement in it. This update relates to the new reporting obligation introduced in the tenth package of sanctions, relating to information held on funds and economic resources within Union territory belonging to, owned, held or controlled by natural or legal persons, entities or bodies listed in Annex I to Council Regulation (EU) No 269/2014 (“designated persons”), and which have been subject to any move, transfer, alteration, use of, access to, or dealing referred to in Article 1(e) or 1(f) in the two weeks preceding the listing of those designated persons. The information should be reported to the competent authority of the Member State where they are resident or located, within two weeks of acquiring this information. This obligation is contained in Article 8(1)(a), second indent, of Council Regulation (EU) No 269/2014, as introduced by Council Regulation (EU) 2023/426 of 25 February 2023.

To facilitate the reporting of this information to the Central Bank, the Central Bank has developed a reporting form, which is contained on the Sanctions Reporting web page.Prior to submitting this reporting form to the Central Bank, consideration should be given to Frequently Asked Questions prepared by the European Commission in this regard.

27 April 2023

In this regard, the European Commission also published a common reporting template for reporting immobilised assets under article 5a(4) of Council Regulation (EU) No 833/2014. The Central Bank of Russia reporting template should be used for making such reports to the Central Bank of Ireland and the European Commission. The common template replaces the template previously published by the Central Bank of Ireland. For more information, please see the Sanctions Reporting webpage.

25 February 2023

On 25 February 2023, the EU adopted a tenth package of sanctions. Briefly, these measures comprises:

Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2023/426 and Council Implementing Regulation 2023/429)
Council Regulation 2023/426 extends, to certain newly listed banks, certain derogations that were applicable to previously listed banks, and to allow the processing of certain payments through one of the newly listed banks. It introduces a specific and temporary derogation allowing the disposal or the transfer of securities by an entity established in the Union currently or previously controlled by a specific listed entity. It furthermore introduces a derogation allowing for the termination of operations, contracts or other agreements with a listed entity, and extends by three months the deadline for the derogation under Article 6b(3), by replacing the existing date of ’28 February 2023’ with the date ‘31 May 2023’.

It introduces more detailed reporting obligations on funds and economic resources belonging to listed individuals and entities, which have been frozen or were subject to any move shortly before the listing. Reporting obligations are also imposed on central securities depositories to provide relevant information to the Member State concerned and to the Commission.

Council Implementing Regulation 2023/429 adds 87 persons and 34 entities, including three banks, to the list of persons, entities and bodies subject to restrictive measures.
Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2023/427)

This introduces, inter alia, further restrictions relating to import and exports, broadcasting, critical infrastructure, and the energy sector, and certain reporting obligations to national competent authorities in respect of the aviation sector. In addition, it introduces new reporting obligations to Member States and to the Commission on immobilized reserves and assets of the Central Bank of Russia.

Further information and background to these measures can be found on the European Council website, the Department of Foreign Affairs website and the Department of Enterprise, Trade and Employment website.

16 December 2022

On 16 December 2022, the EU adopted a ninth package of sanctions. Briefly, these measures comprises:

Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/2474)
This introduces, inter alia, an extension to an existing prohibition targeting new investments in the Russian energy sector by additionally prohibiting new investments in the Russian mining sector, with certain exceptions. It adds the Russian Regional Development Bank to the list of Russian State-owned or controlled entities that are subject to the transaction ban. It bans Union nationals from holding any posts on the governing bodies of all Russian State-owned or controlled legal persons, entities or bodies that are established in Russia, with the possibility for competent authorities to grant an authorisation in certain circumstances. It extends the duration of the exemption from the prohibition to enter into any transactions with certain Russian state-owned entities if such a transaction is strictly necessary for the wind-down of a joint venture or similar legal arrangement. It also introduces the possibility for national competent authorities to authorise transactions, which are necessary for the divestment and withdrawal of those Russian state-owned entities from EU companies. It aligns the Member States’ reporting obligation on deposits exceeding EUR 100 000 from legal persons, entities or bodies established in third countries and majority-owned by Russian nationals or natural persons residing in Russia, with the similar obligations that already exist for the other types of deposits.
Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2022/2475 and Council Implementing Regulation 2022/2476)
Council Regulation 2022/2475 introduces a new deadline for the derogation allowing the divestment by a specific listed entity. It amends point (a) of Article 6b(3), by replacing the existing date of ‘31 December 2022’ with the date ’28 February 2023’. It also extends to two newly listed entities the derogation from the asset freeze and from the prohibition to make funds and economic resources available, in order to allow the termination of operations, contracts, or other agreements, previously concluded with those entities. In order to further address food security concerns in third countries, it introduces a new derogation allowing to unfreeze assets of, and to make funds and economic resources available to, certain individuals who held a significant role in international trade in agricultural and food products, including wheat and fertilisers, prior to their listing.

Council Implementing Regulation 2022/2476 adds 141 persons and 49 entities, to the list of persons, entities and bodies subject to restrictive measures.

Further information and background to these measures can be found on the European Council website, and the Department of Foreign Affairs website.

6 October 2022

On 6 October 2022, the EU adopted a further package of sanctions. Briefly, these measures comprises:

Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/1904)

This introduces, inter alia, an exemption from the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate in or are exported from Russia, purchased at or below a pre-established price cap. It also expands the prohibition to engage in any transaction with certain Russian State-owned or controlled legal persons, entities or bodies by including a ban on Union nationals to hold any posts on the governing bodies of those legal persons, entities or bodies. Furthermore, it removes the threshold for the existing prohibition on the provision of crypto-asset wallet, account or custody services to Russian persons and residents, thereby banning the provision of such services regardless of the total value of such crypto-asset.
Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2022/1905 and Council Implementing Regulation 2022/1906)

Council Regulation 2022/1905 introduces further criterion for the listing of natural or legal persons, entities or bodies subject to asset freeze and the prohibition to make funds and economic resources available to designated persons and entities. It also introduces further derogations from the asset freeze and the prohibition to make funds and economic resources available to certain listed entities, and introduces additional provisions regarding Member States’ obligations concerning the granting of derogations. Council Implementing Regulation 2022/1906 adds 30 persons and 7 entities, to the list of persons, entities and bodies subject to restrictive measures.
Amendments to existing sanctions regime – Ukraine (Donetsk & Luhansk) Regime (Council Regulation 2022/1903)

This amends the title of the Regulation and extends the geographical scope of the restrictions contained therein to cover all the non-government controlled areas of Ukraine in the oblasts of Donetsk, Kherson, Luhansk and Zaporizhzhia.

European Council website

Department of Foreign Affairs

30 August 2022

The Central Bank has provided information on how natural or legal persons, entities or bodies listed in Annex I to Council Regulation (EU) No 269/2014 should report funds or economic resources located within Ireland pursuant to Article 9(2) of Council Regulation (EU) No 269/2014. For further information, please see the Central Bank’s Sanctions Reporting webpage under the heading “Reporting by listed persons, entities or bodies of funds and/or economic resources located within Ireland”, which contains the Self-Declaration Reporting Form.

21 July 2022

On 21 July 2022, the EU adopted a further package of measures, known as the “maintenance and alignment” package. Briefly, these measures comprises:

Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/1269)
This introduces, inter alia, an extension to the list of controlled items which might contribute to Russia’s military and technological enhancement or the development of its defence and security sector. It also imposes a prohibition on the direct or indirect import, purchase or transfer of gold.
Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/1270 and Council Regulation 2022/1273)
Council Implementing Regulation 2022/1270 adds 48 individuals and 9 entities to the list of natural and legal persons, entities and bodies subject to restrictive measures. Council Regulation 2022/1273 introduces, inter alia, further derogations from the asset freezes and the prohibition to make funds and economic resources available to designated persons and entities, as well as an obligation on designated persons and entities with assets within the jurisdiction of a Member State to report these assets and to cooperate with the competent authority in the verification of this reporting. Furthermore, it provides for an extension to the date contained in Article 6b(3)(a) for the sale and transfer of proprietary rights, from 9 October 2022 to 31 December 2022, or within 6 months from the date of listing in Annex I, whichever is latest.

Ukraine (Territorial Integrity) Regime was further amended by Council Implementing Regulation 2022/1274 by adding six individuals and one entity (involved in the recruitment of Syrian mercenaries to fight in Ukraine alongside Russian troops) to the list of natural and legal persons, entities and bodies subject to restrictive measures.

Further information and background to these measures can be found on the European Council website and the Department of Foreign Affairs website.

16 June 2022

The Central Bank of Ireland has issued a Letter to business and professional representative bodies, to provide information and to request that the information be shared, in order to assist their members as they meet their obligations under the EU Financial Sanctions

Financial Sanctions Letter 16 June 2022 | pdf 497 KB

3 June 2022

On 3 June 2022, the EU adopted a sixth package of sanctions. Briefly, these measures comprises:

Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/879)
This introduces, inter alia, an extension to the prohibition on the provision of specialised financial messaging services (SWIFT) to three additional Russian credit institutions (Sberbank, Credit Bank of Moscow, and Russian Agricultural Bank), an expansion to the list of persons connected to Russia’s defence and industrial base, and an extension of the deadline for the cessation of activities provided for in paragraphs 2 and 3 of Article 5m of Regulation 833/2014, from 10 May 2022 until 5 July 2022.
Amendments to existing sanctions regime – Belarus (Sectoral Measures) Regime (Council Implementing Regulation 2022/876 and Council Regulation 2022/877)
Council Implementing Regulation 2022/876 adds 12 individuals and 8 entities to the list of natural and legal persons, entities and bodies subject to restrictive measures. Council Regulation 2022/877 expands the list of Belarusian credit institutions and their Belarusian subsidiaries subject to restrictive measures with regard to the provision of specialised financial messaging services (SWIFT).
Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/878 and Council Regulation 2022/880)

Council Implementing Regulation 2022/878 adds 65 individuals and 18 entities to the list of natural and legal persons, entities and bodies subject to restrictive measures. Council Regulation 2022/880 introduces further derogation options from the asset freeze and the prohibition to make funds and economic resources available to designated persons and entities, and clarifies and strengthens the provisions on national penalties for the breach of measures.

Further information and background to these measures can be found on the European Council website and the Department of Foreign Affairs website

21 April 2022

On 21 April 2022, the EU adopted an amendment to existing sanctions regime – Ukraine (Territorial Integrity) Regime, through Council Implementing Regulation 2022/658. This added two individuals to the list of persons, entities and bodies subject to restrictive measures.

20 April 2022

The Central Bank has provided information on how credit institutions should report information regarding deposits by certain persons linked to Russia/Belarus that exceed EUR 100,000. Please see below under the heading “Reporting by credit institutions of deposits exceeding EUR 100,000”, and the Central Bank’s Sanctions Reporting webpage, which contains the Deposit Prohibition Reporting Form.