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Business and accounting services

 

Prohibition

It shall be prohibited to register, provide a registered office, business or administrative address as well as management services to, a trust or any similar legal arrangement having as a trustor or a beneficiary:


(a) Russian nationals or natural persons residing in Russia;


(b) legal persons, entities or bodies established in Russia;


(c) legal persons, entities or bodies whose proprietary rights are directly or indirectly owned for more than 50 % by a natural or legal person, entity or body referred to in points (a) or (b);


(d) legal persons, entities or bodies controlled by a natural or legal person, entity or body referred to in points (a), (b) or (c);


(e) a natural or legal person, entity or body acting on behalf or at the direction of a natural or legal person, entity or body referred to in points (a), (b), (c) or (d).2.   It shall be prohibited as of 5 July 2022 to act as, or arrange for another person to act as, a trustee, nominee shareholder, director, secretary or a similar position, for a trust or similar legal arrangement as referred to [...].

 It shall be prohibited to provide, directly or indirectly, accounting, auditing, including statutory audit, bookkeeping or tax consulting services, or business and management consulting or public relations services to:


(a) the Government of Russia; or


(b) legal persons, entities or bodies established in Russia.

Exceptions

[...] shall not apply to the operations that are strictly necessary for the termination by 5 July 2022 of contracts which are not compliant with this Article concluded before 9 April 2022 or of ancillary contracts necessary for the execution of such contracts.


[...] shall not apply when the trustor or beneficiary is a national of a Member State or a natural person having a temporary or permanent residence permit in a Member State.


By way of derogation [...], the competent authorities may authorise, under such conditions as they deem appropriate, the services referred to [...] to continue beyond 5 July 2022, for:


(a) the completion by 5 September 2022 of operations strictly necessary for the termination of contracts referred to [...], provided that such operations were initiated before 11 May 2022; or


(b) other reasons, provided that the service providers do not accept from, or make available to, the persons referred to [...] any funds or economic resources, directly or indirectly, or otherwise provide such persons with any benefit from assets placed in a trust.


By way of derogation [...], the competent authorities may authorise the services referred to in those paragraphs, under such conditions as they deem appropriate, after having determined that this is necessary for:


(a) humanitarian purposes, such as delivering or facilitating the delivery of assistance, including medical supplies, food, or the transfer of humanitarian workers and related assistance or for evacuations;


(b) civil society activities that directly promote democracy, human rights or the rule of law in Russia; or


(c) the operation of trusts whose purpose is the administration of occupational pension schemes, insurance policies or employee share scheme, charities, amateur sports clubs, and funds for minors or vulnerable adults.

[...] shall not apply to the provision of services that are strictly necessary for the termination by 5 July 2022 of contracts which are not compliant with this Article concluded before 4 June 2022, or of ancillary contracts necessary for the execution of such contracts.


[...] shall not apply to the provision of services that are strictly necessary for the exercise of the right of defence in judicial proceedings and the right to an effective legal remedy.


[...] shall not apply to the provision of services intended for the exclusive use of legal persons, entities or bodies established in Russia that are owned by, or solely or jointly controlled by, a legal person, entity or body which is incorporated or constituted under the law of a Member State.


By way of derogation [...], the competent authorities may authorise the services referred to therein, under such conditions as they deem appropriate, after having determined that this is necessary for:


(a) humanitarian purposes, such as delivering or facilitating the delivery of assistance, including medical supplies, food, or the transfer of humanitarian workers and related assistance or for evacuations; or


(b) civil society activities that directly promote democracy, human rights or the rule of law in Russia.

Licence modalities

The Member State concerned shall inform the Commission of any authorisation granted [...] within two weeks of such authorisation.

Legal Source

Council Regulation (EU) 833/2014 of 31 July 2014 concerning certain restrictive measures in view of Russia’s actions destabilising the situation in Ukraine. Article 5m, 5n
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.