25 June 2014
Practice Group(s):
International
Arbitration
European Regulatory/
UK Regulatory
International Trade
Global Government
Solutions
UPDATE: Developments in the Ukraine and Impact
on Investments
Further to the Alerts circulated on 10, 18 and 21 March, 22 and 29 April, and 13 May,
below is an update on developments in the EU and U.S. regarding sanctions.
EU sanctions
On 23 June 2014, the EU Foreign Affairs Ministers decided to strengthen the EU’s nonrecognition policy regarding Russia’s annexation of Crimea and Sevastopol by prohibiting
the import into the EU of goods originating from those two regions with effect from 25
June 2014. It is also prohibited to provide financial and insurance services related to the
import of such goods.
In order to minimise the effect of such prohibitions on businesses, the Council has also
provided exceptions and transitional periods. For example, contracts concluded before
25 June 2014 or ancillary contracts necessary for the execution of such contracts can be
executed until 26 September 2014. However, the activity or transaction under the
contract must be notified to the competent authority of the relevant Member State. The
legislation also provides an exception for goods which have been made available to the
Ukrainian authorities for examination, controlled by the Ukrainian authorities and granted
a certificate of origin by the Government of Ukraine.
At the same meeting, the Council also finalised technical preparations for the proposed
signature of the EU-Ukraine Association Agreement on 27 June. The Ministers endorsed
provisional application of parts of the Association Agreement before the ratification by
Member States, since formal ratification by all 28 EU Member States can be a long
process.
Finally, the Council agreed to establish a Common Security and Defence Policy mission
to assist Ukraine in the field of civilian security sector reform, including police and rule of
law. It has been reported that the objective is to deploy the mission in few weeks.
U.S. Sanctions
Pursuant to Executive Order 13660, dated March 6, 2014, the U.S. Department of the
Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned seven individuals on
June 20, 2014. In a concurrent press release, Treasury’s Under Secretary for Terrorism
and Financial Intelligence, David S. Cohen, stated: “The United States will continue to
take action to hold accountable those persons engaged in efforts to destabilize Crimea
and eastern Ukraine. These individuals have all contributed to attempts to illegally
undermine the legitimate government in Kyiv, notably by falsely proclaiming leadership
positions and fomenting violent unrest.” As a result, the following individuals have been
added to OFAC’s List of Specially Designated Nationals and Blocked Persons (“SDN
List”), and any of their assets that are within the United States or the possession or
control of U.S. are frozen and transactions by U.S. persons involving these individuals
generally are prohibited:
1. Valery Bolotov, (a.k.a. BOLOTOV, Valeri; a.k.a. BOLOTOV, Valeriy); d.o.b 1970; alt.
(individual) [UKRAINE].
UPDATE: Developments in the Ukraine and Impact on
Investments
2. Igor Vsevolodovich Girkin (a.k.a. STRELKOV, Igor Ivanovich; a.k.a. STRELKOV, Ihor;
a.k.a. STRELOK, Igor), Shenkurskiy Passage (Proyezd), House 8-6, Apartment 136,
Moscow, Russia; d.o.b 17 Dec 1970; citizen Russia; Passport 4506460961
(individual) [UKRAINE].
3. Valery Vladimirovich Kaurov (a.k.a. KAUROV, Valerii Volodymyrovych; a.k.a.
KAUROV, Valeriy; a.k.a. KAUROV, Valery); d.o.b 02 Apr 1956; POB Odessa, Ukraine
(individual) [UKRAINE].
4. Sergei Ivanovich Menyailo (a.k.a. MENYAILO, Sergei; a.k.a. MENYAILO, Sergey);
d.o.b 22 Aug 1960; POB Alagir, North Ossetia, Russia; Acting Governor of Sevastopol
(individual) [UKRAINE].
5. Vyacheslav Ponomaryov (a.k.a. PONOMAREV, Vyacheslav; a.k.a. PONOMARYOV,
Vachislav); d.o.b 02 May 1965 (individual) [UKRAINE].
6. Andrey Yevgenyevich Purgin (a.k.a. PURGIN, Andrei; a.k.a. PURGIN, Andrej; a.k.a.
PURGIN, Andriy; a.k.a. PURGYN, Andriy; a.k.a. PURHIN, Andriy); d.o.b 26 Jan 1972
(individual) [UKRAINE].
7. Denis Pushilin (a.k.a. PUSHYLIN, Denis; a.k.a. PUSHYLIN, Denis Volodymyrovych;
a.k.a. PUSHYLIN, Denys); d.o.b 09 May 1981; POB Makeevka, Ukraine (individual)
[UKRAINE].
We will continue to update with alerts as the situation develops. Should you have any
questions regarding the latest sanctions, and/or protection of investments, please do not
hesitate to contact the authors.
Authors:
London
Ania Farren
Ian Meredith
ania.farren@klgates.com
+44.(0)20.7360.8175
ian.meredith@klgates.com
+44.(0)20.7360.8171
Brussels
Moscow
Washington D.C.
Philip Torbøl
William M. Reichert
Daniel Gerkin
philip.torbol@klgats.com
+32.(0)2.336.1903
william.reichert@klgates.com
+7.495.643.1700
daniel.gerkin@klgates.com
+1.202.778.9168
Frank Schweitzer
Donald Smith
Jerome Zaucha
frank.schweitzer@klgates.com
+1.202.778.9488
donald.smith@klgates.com
+1.202.778.9079
jerome.zaucha@klgates.com
+1.202.778.9013
Vanessa Edwards
vanessa.edwards@klgates.com
+44.(0)20.7360.8293
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UPDATE: Developments in the Ukraine and Impact on
Investments
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