EXPLANATORY MEMORANDUM

(1) On 9 May 2011, the Council adopted Regulation (EU) No 442/2011 concerning restrictive measures in view of the situation in Syria.

(2) On 18 August 2011, the High Representative / Vice President issued a statement indicating that the EU was proceeding with further action. On 26 August 2011, the Council reached political agreement on a package of further measures to be adopted including an expansion of the designation criteria for the freezing of funds, and a prohibition on the purchase, import or transportation from Syria of crude oil and petroleum products. The additional persons, entities and bodies to whom the freezing of funds and economic resources is to apply are listed in the Annex to the Decision.

(3) Some of these measures fall within the scope of the Treaty on the Functioning of the European Union and, therefore, notably with a view to ensuring their uniform application by economic operators in all Member States, regulatory action at the level of the Union is necessary in order to implement them.

2011/0233 (NLE)

Joint Proposal for a

COUNCIL REGULATION

amending Regulation (EU) No 442/2011 concerning restrictive measures in view of the situation in Syria

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 Council Decision 2011/273/CFSP concerning restrictive measures in view of the situation in Syria[1],

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

Whereas:

(1) On 9 May 2011, the Council adopted Regulation (EU) No 442/2011 concerning restrictive measures in view of the situation in Syria[2].

(2) Council Decision 2011/[…]/CFSP of […][3] provides for further measures to be adopted including a prohibition on the purchase, import or transportation from Syria of crude oil and petroleum products, and the freezing of funds and economic resources to further persons and entities who benefit from or support Bashar al-Assad and his regime. The additional persons, entities and bodies to whom the freezing of funds and economic resources is to apply are listed in the Annex to the Decision.

(3) Some of those measures fall within the scope of the Treaty on the Functioning of the European Union and, therefore, in particular with a view to ensuring their uniform application by economic operators in all Member States, regulatory action at the level of the Union is necessary in order to implement them.

(4) A partial suspension of the Cooperation Agreement Syria[4] has been effected by Council Decision […][5].

(5) In order to ensure that the measures provided for in this Regulation are effective, this Regulation must enter into force immediately,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EU) No 442/2011 is amended as follows:

(1) In Article 1, the following paragraphs are inserted:

“(g) ‘insurance’ means an undertaking or commitment whereby one or more natural or legal persons is or are obliged, in return for a payment, to provide one or more other persons, in the event of materialisation of a risk, with an indemnity or a benefit as determined by the undertaking or commitment;

(h) ‘reinsurance’ means the activity consisting in accepting risks ceded by an insurance undertaking or by another reinsurance undertaking or, in the case of the association of underwriters known as Lloyd's, the activity consisting in accepting risks, ceded by any member of Lloyd's, by an insurance or reinsurance undertaking other than the association of underwriters known as Lloyd's;

(i) ‘petroleum products’ means the products listed in Annex IV.”

(2) the following Articles 3a and 3b are inserted:

“Article 3a

It shall be prohibited:

(a) to import crude oil or petroleum products into the Union if they

(i) originate in Syria; or

(ii) have been exported from Syria;

(b) to purchase crude oil or petroleum products which are located in or which originated in Syria;

(c) to transport crude oil or petroleum products if they originate in Syria, or are being exported from Syria to any other country;

(d) to provide, directly or indirectly, financing or financial assistance, including financial derivatives and future products, as well as insurance and re-insurance, related to the provisions in paragraphs (a), (b) and (c); and

(e) to participate, knowingly and intentionally, in activities whose object or effect is, directly or indirectly, to circumvent the prohibitions in points (a), (b), (c) or (d).

Article 3b

The prohibitions in Article 3a shall not apply to:

(a)      the execution, on or prior to 31 October 2011, of an obligation arising from a contract concluded before [insert the date of adoption of this Article], provided that the natural or legal person, entity or body seeking to perform the obligation concerned has notified, at least 3 working days in advance, the activity or transaction to the competent authority of the Member State in which it is established, as identified on the websites listed in Annex III; or

(b)     the purchase of crude oil or petroleum products which had been exported from Syria prior to [insert date of adoption of this Article], or, where the export was made pursuant to paragraph (a), on or prior to 31 October 2011.”

(3) Article 5(1) is replaced by the following:

“1. Annex II shall consist of a list of natural or legal persons, entities and bodies who, in accordance with Article 4(1) of Decision 2011/273/CFSP, have been identified by the Council as being persons responsible for the violent repression against the civilian population in Syria, persons and entities benefitting from or supporting Bashar al-Assad and his regime, or persons and entities associated with them.”

(4) In the first paragraph of Article 6, points (c) and (d) are replaced by the following:

"(c) intended exclusively for the payment of fees or service charges for routine holding or maintenance of frozen funds or economic resources;

(d) necessary for extraordinary expenses, provided that the relevant competent authority has notified to the competent authorities of the other Member States and to the Commission at least two weeks before the authorisation the grounds on which it considers that a specific authorisation should be granted;”

and the following additional subparagraphs are inserted:

“(e) to be paid into or from an account of a diplomatic or consular mission or an international organisation enjoying immunities in accordance with international law, insofar as such payments are intended to be used for official purposes of the diplomatic or consular mission or international organisation; or

(f) necessary for humanitarian purposes, such as delivering or facilitating the delivery of assistance, including medical supplies, food, the provision of electricity, humanitarian workers and related assistance, or evacuations from Syria.”

(5) The following Article 10a is inserted:

“No claims, including for compensation or any other claim of this kind, such as a claim of set-off or a claim under a guarantee, in connection with any contract or transaction the performance of which was affected, directly or indirectly, in whole or in part, by the measures imposed by this Regulation, should be granted to the Government of Syria, or to any person or entity claiming through it or for its benefit.”

Article 2

Annex II to Regulation (EU) No 442/2011 is hereby amended in accordance with the Annex to this Regulation

Article 3

Annex II to this Regulation is hereby inserted as Annex IV to Regulation (EU) No 442/2011.

Article 4

This Regulation shall enter into force on the day of 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, […]

                                                                       For the Council

                                                                       The President                                                                        […]

ANNEX

The following shall be added to list of natural and legal persons, entities or bodies in Annex II to Regulation (EU) No 442/2011

[additional names to be proposed by Council]

ANNEX II

“ANNEX IV”

List of Petroleum Products and HS Code

HS Code         Description

2709 00           Petroleum oils and oils obtained from bituminous minerals, crude:

2710    Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils:

2711    Petroleum gases and other gaseous hydrocarbons:

2712    Petroleum jelly; paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured:

2713    Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals:

2714    Bitumen and asphalt, natural; bituminous or oil-shale and tar sands; asphaltites and asphaltic rocks:

2715 00 00      Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on mineral tar or on mineral tar pitch (for example, bituminous mastics, cut-backs)

[1]               OJ L 121, 10.5.2011, p. 11.

[2]               OJ L 121, 10.5.2011, p. 11.

[3]               OJ L […]

[4]               OJ L 269, 27.9.1978, p. 2.

[5]               OJ L […]