The European Union approved criminal liability for circumventing sanctions
[ad_1]
The European Union has approved criminal liability for circumventing sanctions. As stated on the website of the EU Council, the authorities have approved the minimum requirements for punishment for such a crime. Each participating country must independently develop a system of responsibility for circumventing sanctions; they have a whole year to do this. The EU Council, for its part, demands that in the most egregious cases a prison sentence be imposed. It is recommended to use it if the accused violated the sanctions regime intentionally. In addition, such a person may be subject to fines, the amount of which has not yet been established.
How will all this work? Nikita Ryabinin, head of the Luxembourg office of the KRK Group, believes that trading in stock goods will become much more difficult: “Each EU country will have to develop regulations. It is clear that there are different mechanisms to extend these deadlines, but EU members will be obliged to do this and comply. The question is how strictly the norm will be prescribed. There is a possibility that the choice between criminal liability or a fine will still be left to the discretion of national states. You need to prove intent. This is very difficult within the framework of the right field of the European Union in fact.
You can prove that you participated in the structure of the deal, but you will be proving that you did not know who you were selling the technology to. It is very difficult to find a real evidence base for this, unless you yourself have written a sincere confession.
I think this is quite a harsh measure. It is more focused on intensifying the fight against any cooperation between counterparties for Russia, making it even more difficult to carry out any transactions with persons of the company who are somehow at least slightly associated. Compliance will be even more difficult. This is more of a moral oppression of counterparties so that they, in general, simply do not approach and do not try to do something.”
The European Union is currently working on the 14th package of sanctions. As Vice-President of the European Commission Valdis Dombrovskis stated, it will include new restrictive measures and protection against circumventing them. The authorities have listed actions that may result in criminal liability. This, in particular, helps to circumvent the ban on traveling within the EU or carrying out prohibited financial activities. But first of all, prison sentences may be imposed for trading in circumvention of existing sanctions. “Kommersant FM” asked the partner of the NSP law office, Alexander Nektorov, to explain with examples:
— For example, there are sanctions on luxury. It is impossible to officially deliver the iPhone, but there is an intermediary Turkish company. Will this apply to them?
– No. Still, there should be criminal prosecution if it is committed within the jurisdiction of the European Union. If the person who makes this transaction does not have either an EU residence permit or an EU passport, then, naturally, criminal liability should not apply to him. But it will extend to Europeans.
– Can this be theoretically proven? Because if I, as a European company, supply iPhones to Turkey, at that moment I am not violating anything, and what happens to them next is unknown to me.
—If the compliance of this company that supplies iPhones is convinced that iPhones will be consumed inside, say, Turkey, then there are no questions here.
— And the European supplier company has an obligation to monitor this, because maybe Turkey will sell further to Azerbaijan without any violations?
— There is, and now there is such a thing as an end-user certificate. The buyer must prove that the product will be consumed in the relevant country. If he cannot prove this, then he may be refused to sell the goods.
— In 2024, an exchange of blocked assets should take place; in light of the new criminal liability, will they be accused of helping Russia circumvent sanctions?
— If the blocked person does not receive economic benefits, there is no violation of the sanctions regime. Naturally, responsibility will be additionally intimidating to participate in this exchange, but I would not say that this automatically entails a violation of the sanctions regime.
Currently, criminal liability for circumventing sanctions is enshrined in the laws of some European countries, but not in all. For example, in early March, Finland issued its first verdict under such an article. French citizen Gabriel Temin received a nine-month suspended sentence for exporting drones and dual-use goods to Russia.
[ad_2]
Source link
