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FINANCIAL SERVICES - LOANS AND CREDITS

 

PROHIBITION

art. 5a.2. 
1) It shall be prohibited to directly or indirectly make or be part of any arrangement to make any new loans or credit to any legal person, entity or body referred to in paragraph 1 after 23 February 2022.
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art. 5.6. 
2) It shall be prohibited to directly or indirectly make or be part of any arrangement to make:
(i) new loans or credit with a maturity exceeding 30 days to any legal person, entity or body referred to in paragraph 1 or 3, after 12 September 2014 to 22 February 2022; or.
(ii) any new loans or credit to any legal person, entity or body referred to in paragraph 1, 2, 3 or 4 after 26 February 2022.

EXCEPTIONS

1)
The prohibition shall not apply to loans or credit that have a specific and documented objective to provide financing for non-prohibited imports or exports of goods and non-financial services between the Union and any third State, including the expenditure for goods and services from another third State that is necessary for executing the export or import contracts. 
The prohibition in (...) shall not apply to drawdown or disbursements made under a contract concluded before 23 February 2022 provided that the following conditions are met:
(a) all the terms and conditions of such drawdown or disbursements (i) were agreed before 23 February 2022; and (ii) have not been modified on or after that date; and
b) before 23 February 2022 a contractual maturity date has been fixed for the repayment in full of all funds made available and for the cancellation of all the commitments, rights and obligations under the contract.
The terms and conditions of drawdowns and disbursements referred to in point (a) include provisions concerning the length of the repayment period for each drawdown or disbursement, the interest rate applied or the interest rate calculation method, and the maximum amount.
2) 
The prohibition shall not apply to: 
(a) loans or credit that have a specific and documented objective to provide financing for non-prohibited imports or exports of goods and non-financial services between the Union and any third State, including the expenditure for goods and services from another third State that is necessary for executing the export or import contracts; or 
(b) loans that have a specific and documented objective to provide emergency funding to meet solvency and liquidity criteria for legal persons established in the Union, whose proprietary rights are owned for more than 50 % by any entity referred to in Annex III.
The prohibition (...) shall not apply to drawdown or disbursements made under a contract concluded before 22 February 2022 provided that the following conditions are met:
(a) all (a) all the terms and conditions of such drawdown or disbursements: (i) were agreed before 26 February 2022; and (ii) have not been modified on or after that date; and 
(b) before 26 February 2022 a contractual maturity date has been fixed for the repayment in full of all funds made available and for the cancellation of all the commitments, rights and obligations under the contract; and
(c) at the time of its conclusion the contract was not in breach of the prohibitions of this Regulation in force at that time. 
The terms and conditions of drawdowns and disbursements referred to in point (a) include provisions concerning the length of the repayment period for each drawdown or disbursement, the interest rate applied or the interest rate calculation method, and the maximum amount.

SERVICES CONCERNED

1) New loans or credit to the following entities after 23 February 2022.

a) Russia and its Government

b) the Russian Central Bank

c) a legal person, entity or body acting on behalf of, or at the direction of, the Russian Central Bank

2) New loans or credit with a maturity exceeding 30 days to the following entities after 12 September 2014 to 22 February 2022

(a) (Annex III)

1. SBERBANK

2. VTB BANK

3. GAZPROMBANK

4. VNESHECONOMBANK (VEB)

5. ROSSELKHOZBANK

(b) a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50 % by an entity listed in Annex III; or

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

(a) Annex V

  1. OPK OBORONPROM

  2. UNITED AIRCRAFT CORPORATION

  3. URALVAGONZAVOD

except legal persons, entities or bodies active in the space or the nuclear energy sectors;

(b)  Annex VI

  1. ROSNEFT

  2. TRANSNEFT

3. GAZPROM NEFT;

(c) a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50 % by an entity listed in point (a) or (b) (...); or

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

Any new loans or credit to any legal person, entity or body referred to in paragraph 1, 2, 3 or 4 after 26 February 2022

(1)

(a) (Annex III)

1. SBERBANK

2. VTB BANK

3. GAZPROMBANK

4. VNESHECONOMBANK (VEB)

5. ROSSELKHOZBANK

(b) a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50 % by an entity listed in Annex III; or

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

(2) 

(a) Annex XII of EU Regulation

  1. Alfa Bank

  2. Bank Otkritie

  3. Bank Rossiya

4. Promsvyazbank; or

(b)  a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50 % by an entity listed in Annex XII; or

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

(3) 

(a) Annex V

  1. OPK OBORONPROM

  2. UNITED AIRCRAFT CORPORATION

  3. URALVAGONZAVOD

except legal persons, entities or bodies active in the space or the nuclear energy sectors;

(b)  Annex VI

  1. ROSNEFT

  2. TRANSNEFT

3. GAZPROM NEFT;

(c) a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50 % by an entity listed in point (a) or (b) (...); or

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

(4) 

(a) Annex XIII:

Almaz-Antey;

Kamaz;

Novorossiysk Commercial Sea Port;

Rostec (Russian Technologies State Corporation);

Russian Railways;

JSC PO Sevmash;

Sovcomflot; and

United Shipbuilding Corporation

Russian Maritime Register of Shipping; or

(b) a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50 % by an entity listed Annex XIII; or

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

LEGAL SOURCE

EU Regulation (EU) 883/2014 of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine. Articles 5.6., 5.7., 5a.2., 5a.3.

The EU Regulation is directly applicable in all EU Member States.

The EU Regulation is based on EU Council Decision 2014/512/CFSP of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine. Article 1.6., 1.7., 1a.2., 1a.3.