Amendments to the Russia Sanctions Regime
The UK Government has updated its Russia sanctions regime through the Russia (Sanctions) (EU Exit) (Amendment) (No. 17) Regulations 2022. These changes came into force today and are effective immediately in Jersey.
The UK Russia Regulations prohibit the provision of trust services:
- to or for the benefit of a person connected with Russia unless pursuant to an ongoing arrangement pursuant to which that person provided those services to or for the benefit of the person connected with Russia immediately prior to 16 December 2022; and
- to or for the benefit of a person designated for the purposes of regulation 18C (trust services).
Amendments have also been made to restrictions on transferable securities and money-market instruments, loan and credit arrangements, and investments in Russia. These amendments have been designed to prohibit new investments in Russia via third countries.
The Office for Financial Sanctions Implementation ("OFSI") have also introduced a General Licence to allow for a 7 day wind down period in respect to financial prohibitions in Regulations 16, 17 and 18B of the UK Russia Regulations. The General Licence took effect from 00:01 on 16 December 2022 and expires at 23:59 on 22 December 2022. This licence relates to non asset freezing provisions and as such is implemented automatically in Jersey. Please see the guidance on licences and exceptions for further details on the application of UK General Licences in Jersey.
Full details of the amendments to the Russia sanctions regime can be found on OFSI's website.
Sanctions and Asset-Freezing (Amendment – Haiti and Miscellaneous) (Jersey) Order 2022
On Thursday 15 December 2022, the Minister for External Relations made the Sanctions and Asset-Freezing (Amendment – Haiti and Miscellaneous) (Jersey) Order 2022 (the "Amendment Order"), coming into force today on Friday 16 December 2022. The Amendment Order has amended the Sanctions and Asset-Freezing (Implementation of External Sanctions) (Jersey) Order 2021 (the "Sanctions Order").
The Amendment Order adds the Haiti (Sanctions) Regulations 2022 (the "UK Haiti Regulations") to the list of implemented UK sanctions instruments under Schedule 1 of the Sanctions Order.
The UK Haiti Regulations implement United Nations Security Council Resolution 2653 (2022) ("UNSCR 2653"). The UK Haiti Regulations provide that those persons designated by the UN as responsible for or complicit in, or having engaged in, directly or indirectly, actions that threaten the peace, security or stability of Haiti are designated for the purpose of an asset-free in the UK. The UK Haiti Regulations also introduce, inter alia, certain prohibitions in respect of military goods and technology including restrictions against providing financial services and brokering services. Adding the UK Haiti Regulation to the Sanctions Order means that these asset-freeze designations other prohibitions are implemented in Jersey.
Secondly, the Amendment Order broadens the provision on reading UK references as their Jersey equivalents, so that that provision covers all references to a person who performs a function and all references to legislation, and so that the UK reference has effect alongside the Jersey equivalent. This does not apply where specific provision is made elsewhere in the amended Order.
Thirdly, the Amendment Order removes the Andrey Lugovoy and Dmitri Kovtun Freezing Order 2020 (the "L & K Order") from Schedule 1 of the Sanctions Order. The L & K Order expired 2 years after it was made, without being renewed and therefore no longer has effect. However, Lugovoy and Kovun remain designated for the purpose of an asset-freeze under the Global Human Rights Sanctions Regulations 2020, implemented in Jersey through the Sanctions Order.
Finally, the Amendment Order takes the opportunity to update a reference to the Interpretation (Jersey) Law 1954 in Article 1(2) of the Sanctions Order which should now be to the Legislation (Jersey) Law 2021.
Additional guidance
Additional guidance on sanctions can be found on both the Government of Jersey and Jersey Financial Services Commission websites. If you have any questions about this notice or new guidance, please contact sanctions@gov.je.
gov.je