EUROPEAN COMMISSION

Brussels, 23.11.2022

JOIN(2022) 52 final/2 DOWNGRADED on 14.3.2023

2022/0395(NLE)

Joint Proposal for a

COUNCIL REGULATION

amending Council Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine

EXPLANATORY MEMORANDUM

2022/0395 (NLE)

Joint Proposal for a

COUNCIL REGULATION

amending Council Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 215 thereof,

Having regard to Decision (CFSP) 2022/XXX 1 of XX November 2022 amending Decision 2014/512/CFSP 2 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine,

Having regard to the joint proposal of the High Representative of the Union for Foreign Affairs and Security Policy and of the European Commission,

Whereas:

(1)On 31 July 2014, the Council adopted Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine 3 .

(2)Regulation (EU) No 833/2014 gives effect to certain measures provided for in Council Decision 2014/512/CFSP.

(3)Decision (CFSP) 2022/1909 of 6 October 2022 introduced an exemption from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate in or are exported from Russia, purchased at or below a pre-established price cap agreed by the Price Cap Coalition. That exemption should mitigate adverse consequences on energy supply to third countries and reduce price surges driven by extraordinary market conditions, while limiting Russian oil revenues.

(4)On XXX the Council adopted Decision (CFSP) 2022/XXX amending Decision 2014/512/CFSP. Decision (CFSP) 2022/XXX establishes the price cap, that is the price per barrel at or below which crude oil from Russia is exempt from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries. 

(5)Decision (CFSP) 2022/XXX clarifies the existing prohibition on the trading and brokering of Russian crude oil or petroleum products and extends the price cap exception when such goods are traded at or below the price cap.

(6)Decision (CFSP) 2022/XXX also extends the transition period applicable to the transport of crude oil and certain petroleum products after every subsequent change in the price cap for a period of 90 days to the provision, directly or indirectly, of technical assistance, brokering services or financing or financial assistance, related to the transport, subject to the same conditions. This exception is necessary to ensure coherent implementation of the price cap by all operators.

(7)Decision (CFSP) 2022/XXX introduces a transitional period of 45 days for vessels carrying crude oil originating in Russia, which was purchased and loaded onto the vessel prior to 5 December 2022 and unloaded prior to 19 January 2023.

(8)Decision (CFSP) 2022/XXX clarifies that the prohibition to provide services related to the transport of Russian crude oil or petroleum products by a third country flagged vessel applies in relation to vessels which in the past transported such goods purchased above the price cap, provided the operator responsible for that transport knew or had reasonable cause to suspect that this was the case. This is necessary in order to ensure legal certainty.

(9)Finally, Decision (CFSP) 2022/XXX introduces an exemption to the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries, where necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters.

(10)These measures fall within the scope of the Treaty and, therefore, in particular with a view to ensuring their uniform application in all Member States, regulatory action at the level of the Union is necessary.

(11)Regulation (EU) No 833/2014 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Article 3n of Regulation (EU) No 833/2014 is amended as follows:

(1)paragraph 1 is replaced by the following:

‘1. It shall be prohibited to provide, directly or indirectly, technical assistance, brokering services or financing or financial assistance, related to the trading, brokering or transport, including through ship-to-ship transfers, to third countries of crude oil or petroleum products as listed in Annex XXV which originate in Russia or which have been exported from Russia.’

(2)paragraph 4 is replaced by the following:

‘4. It shall be prohibited to trade, broker or transport, including through ship-to-ship transfers, to third countries, crude oil falling under CN code 2709 00, as of 5 December 2022, or petroleum products falling under CN code 2710, as of 5 February 2023, as listed in Annex XXV, which originate in Russia or which have been exported from Russia.’

(3)paragraph 5 is replaced by the following:

‘5. The prohibition in paragraph 4 shall apply as from the date of entry into force of the first Council Decision amending Annex XI to Decision 2014/512/CFSP in accordance with Article 4p(9)(a) of that Decision.

As from the date of entry into force of every subsequent Council Decision amending Annex XI to Decision 2014/512/CFSP, the prohibitions in paragraphs 1 and 4 shall not apply, for a period of 90 days, to the transport of products listed in Annex XXV to this Regulation which originate in Russia or which have been exported from Russia, and to the provision, directly or indirectly, of technical assistance, brokering services or financing or financial assistance, related to the transport, provided that

(a) the transport or the provision of technical assistance, brokering services or financing or financial assistance, related to the transport is based on a contract concluded before the date of entry into force of every subsequent Council Decision amending Annex XI to Decision 2014/512/CFSP; and

(b) the purchase price per barrel did not exceed the price laid down in Annex XXVIII to this Regulation on the date of conclusion of that contract.’

(4)paragraph 6 is amended as follows:

‘The prohibitions in paragraphs 1 and 4 shall not apply:

(a) as of 5 December 2022, to crude oil falling under CN code 2709 00, and as of 5 February 2023, to petroleum products falling under CN code 2710, which originate in Russia or which have been exported from Russia the purchase price per barrel of which does not exceed the price laid down in Annex XXVIII;

(b) to crude oil or petroleum products as listed in Annex XXV where those goods originate in a third country and are only being loaded in, departing from or transiting through Russia, provided that both the origin and the owner of those goods are non-Russian;

(c) to the transport, or to technical assistance, brokering services, financing or financial assistance related to such transport, of the products mentioned in Annex XXIX to the third countries mentioned therein, for the duration specified in that Annex.

(d) as of 5 December 2022, to crude oil falling under CN code 2709 00, which originates in Russia or which has been exported from Russia purchased above the price laid down in Annex XXVIII which is loaded onto a vessel at the port of loading prior to 5 December 2022 and unloaded at the final port of destination prior to 19 January 2023.’

(5)paragraph 7 is replaced by the following:

‘7. In the event that, after the entry into force of a Council Decision amending Annex XI to Decision 2014/512/CFSP, a vessel has transported Russian crude oil or petroleum products referred to in paragraph 4, and the operator responsible for the transport knew or had reasonable cause to suspect that such crude oil or petroleum products were purchased above the price laid down in Annex XXVIII on the date of conclusion of the contract for such purchase, it shall be prohibited to provide the services referred to in paragraph 1 relating to the transport of  crude oil or petroleum products that originate in Russia or are exported from Russia referred to in paragraph 4 by that vessel for 90 days following the date of unloading of the cargo purchased above the price cap.’

(6)the following paragraph is added:

‘9. The prohibitions in paragraph 1 and 4 shall not apply to the transport or provision of technical assistance, brokering services or financing or financial assistance, related to the transport necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters, provided that the national competent authority has been notified immediately once the event has been identified.’

(7)    the following paragraph is added:

‘10. Member States and the Commission shall inform each other of detected instances of breach, circumvention and attempts at breach or circumvention of the prohibitions set out in this Article.

Any information provided or received in accordance with this Article shall be used for the purposes for which it was provided or received, including ensuring the effectiveness of the measure.’

Article 2

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

(1)    OJ L […], […], p. […].

(2)    Council Decision 2014/512/CFSP of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine ( OJ L 229, 31.7.2014, p. 13 ).

(3)    Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine ( OJ L 229, 31.7.2014, p. 1 ).