COUNCIL REGULATION (EU) No 36/2012
of 18 January 2012
concerning restrictive measures in view of the situation in Syria and repealing Regulation (EU) No 442/2011
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 2011/782/CFSP of 1 December 2011 concerning restrictive measures against 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)
The Council expanded the scope of its measures against Syria by way of Council Regulations on 2 September, 23 September, 13 October and 14 November 2011 (3), as well as making amendments and additions to the list of targeted persons and entities through successive Council Implementing Regulations (4). Further measures, which do not fall within the scope of Union law, are set out in the corresponding CFSP Decisions of the Council (5).
(3)
In view of the continued brutal repression and violation of human rights by the Government of Syria, Council Decision 2011/782/CFSP provides for additional measures, namely a prohibition on the export of telecommunications monitoring equipment for use by the Syrian regime, a prohibition on the participation in certain infrastructure projects and investment in such projects, and additional restrictions on the transfers of funds and the provision of financial services.
(4)
It should be clarified that submitting and forwarding the necessary documents to a bank for the purpose of their final transfer to a person, entity or body that is not listed, to trigger payments allowed under Article 20, does not constitute making funds available within the meaning of Article 14.
(5)
The power to amend the list in Annex II and IIa to this Regulation should be exercised by the Council, in view of the serious political situation in Syria, and to ensure consistency with the process for amending and reviewing the Annex to Decision 2011/782/CFSP.
(6)
The procedure for amending the lists in Annex II and IIa to this Regulation should include providing designated natural or legal persons, entities or bodies with the grounds for listing, so as to give them an opportunity to submit observations. Where observations are submitted, or substantial new evidence is presented, the Council should review its decision in light of those observations and inform the person, entity or body concerned accordingly.
(7)
For the implementation of this Regulation, and in order to create maximum legal certainty within the Union, the names and other relevant data concerning natural and legal persons, entities and bodies whose funds and economic resources must be frozen in accordance with this Regulation, must be made public.Any processing of personal data should comply with Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (6) and Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (7).
(8)
These measures fall within the scope of the Treaty on the Functioning of the European Union and, therefore, notably with a view to ensuring its uniform application by economic operators in all Member States, regulatory action at the level of the Union is necessary in order to implement them.
(9)
In view of the extent of the amendments introduced, taken together with the various measures already adopted in relation to Syria, it is appropriate to consolidate all the measures into a new regulation which repeals and replaces Regulation (EU) No 442/2011.
(10)
In order to ensure that the measures provided for in this Regulation are effective, this Regulation should enter into force immediately,
HAS ADOPTED THIS REGULATION:
CHAPTER I
DEFINITIONS
Article 1
For the purposes of this Regulation, the following definitions shall apply:
(a)
‧branch‧ of a financial or credit institution means a place of business which forms a legally dependent part of a financial or credit institution and which carries out directly all or some of the transactions inherent in the business of financial or credit institutions;
(b)
‧brokering services‧ means:
(i)
the negotiation or arrangement of transactions for the purchase, sale or supply of goods and technology from a third country to any other third country, or
(ii)
the selling or buying of goods and technology that are located in third countries for their transfer to another third country;
(c)
‧contract or transaction‧ means any transaction of whatever form and whatever the applicable law, whether comprising one or more contracts or similar obligations made between the same or different parties; for this purpose ‧contract‧ includes a bond, guarantee or indemnity, particularly a financial guarantee or financial indemnity, and credit, whether legally independent or not, as well as any related provision arising under, or in connection with, the transaction;
(d)
‧credit institution‧ means a credit institution as defined in Article 4(1) of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (8), including its branches inside or outside the Union;
(e)
‧crude oil and petroleum products‧ means the products listed in Annex IV;
(f)
‧economic resources‧ means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds, but which may be used to obtain funds, goods or services;
(g)
‧financial institution‧ means:
(i)
an undertaking, other than a credit institution, which carries out one or more of the operations included in points 2 to 12 and points 14 and 15 of Annex I to Directive 2006/48/EC, including the activities of currency exchange offices (bureaux de change);
(ii)
an insurance company duly authorised in accordance with Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance (9), insofar as it carries out activities covered by that Directive;
(iii)
an investment firm as defined in point 1 of Article 4(1) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (10);
(iv)
a collective investment undertaking marketing its units or shares; or
(v)
an insurance intermediary as defined in Article 2(5) of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation (11), with the exception of intermediaries referred to in Article 2(7) of that Directive, when they act in respect of life insurance and other investment related services;
including its branches, whether inside or outside the Union;
(h)
‧freezing of economic resources‧ means preventing their use to obtain funds, goods or services in any way, including, but not limited to, by selling, hiring or mortgaging them;
(i)
‧freezing of funds‧ means preventing any move, transfer, alteration, use of, access to, or dealing with funds in any way that would result in any change in their volume, amount, location, ownership, possession, character, destination or other change that would enable the funds to be used, including portfolio management;
(j)
‧funds‧ means financial assets and benefits of every kind, including but not limited to:
(i)
cash, cheques, claims on money, drafts, money orders and other payment instruments;
(ii)
deposits with financial institutions or other entities, balances on accounts, debts and debt obligations;
(iii)
publicly- and privately-traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts;
(iv)
interest, dividends or other income on or value accruing from or generated by assets;
(v)
credit, right of set-off, guarantees, performance bonds or other financial commitments;
(vi)
letters of credit, bills of lading, bills of sale;
(vii)
documents evidencing an interest in funds or financial resources;
(k)
‧goods‧ includes items, materials and equipment;
(l)
‧insurance‧ means an undertaking or commitment whereby one or more natural or legal persons are obliged, in return for 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;
(m)
‧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;
(n)
‧Syrian credit or financial institution‧ means:
(i)
any credit or financial institution domiciled in Syria, including the Central Bank of Syria;
(ii)
any branch or subsidiary, where it falls within the scope of Article 35, of a credit or financial institution domiciled in Syria;
(iii)
any branch or subsidiary, where it does not fall within the scope of Article 35, of a credit or financial institution domiciled in Syria;
(iv)
any credit or financial institution that is not domiciled in Syria but is controlled by one or more persons or entities domiciled in Syria;
(o)
‧Syrian person, entity or body‧ means:
(i)
the State of Syria or any public authority thereof;
(ii)
any natural person in, or resident in, Syria;
(iii)
any legal person, entity or body having its registered office in Syria;
(iv)
any legal person, entity or body, inside or outside Syria, owned or controlled directly or indirectly by one or more of the above-mentioned persons or bodies;
(p)
‧technical assistance‧ means any technical support related to repairs, development, manufacture, assembly, testing, maintenance, or any other technical service, and may take forms such as instruction, advice, training, the transmission of working knowledge or skills or consulting services; including verbal forms of assistance;
(q)
‧territory of the Union‧ means the territories of the Member States to which the Treaty is applicable, under the conditions laid down in the Treaty, including their airspace.
CHAPTER II
EXPORT AND IMPORT RESTRICTIONS
Article 2
1. It shall be prohibited:
(a)
to sell, supply, transfer or export, directly or indirectly, equipment which might be used for internal repression as listed in Annex I, whether or not originating in the Union, to any person, entity or body in Syria or for use in Syria;
(b)
to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the prohibitions referred to in point (a).
2. Paragraph 1 shall not apply to protective clothing, including flak jackets and helmets, temporarily exported to Syria by United Nations (UN) personnel, personnel of the Union or its Member States, representatives of the media or humanitarian and development workers and associated persons exclusively for their personal use.
3. By way of derogation from paragraph 1, the competent authorities in the Member States as listed in Annex III may authorise the sale, supply, transfer or export of equipment which might be used for internal repression, under such conditions as they deem appropriate, if they determine that such equipment is intended solely for humanitarian or protective use.
Article 3
1. It shall be prohibited:
(a)
to provide, directly or indirectly, technical assistance related to the goods and technology listed in the Common Military List of the European Union (12) (‧Common Military List‧) or related to the provision, manufacture, maintenance and use of goods included in that list, to any person, entity or body in Syria or for use in Syria;
(b)
to provide, directly or indirectly, technical assistance or brokering services related to equipment which might be used for internal repression as listed in Annex I, to any person, entity or body in Syria or for use in Syria;
(c)
to provide, directly or indirectly, financing or financial assistance related to the goods and technology listed in the Common Military List or in Annex I, including in particular grants, loans and export credit insurance, for any sale, supply, transfer or export of such items, or for any provision of related technical assistance to any person, entity or body in Syria or for use in Syria;
(d)
to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the prohibitions referred to in points (a) to (c).
2. By way of derogation from paragraph 1, the prohibitions referred to therein shall not apply to the provision of technical assistance, financing and financial assistance related to:
-
technical assistance intended solely for the support of the United Nations Disengagement Observer Force (UNDOF);
-
non-lethal military equipment, or equipment which might be used for internal repression, intended solely for humanitarian purposes or protective use or for institution building programmes of the UN and the Union, or for Union or UN crisis management operations; or
-
non-combat vehicles fitted with materials to provide ballistic protection, intended solely for the protective use of personnel of the Union and its Member States in Syria;
provided that such provision shall first have been approved by the competent authority of a Member State, as identified on the websites listed in Annex III.
Article 4
1. It shall be prohibited to sell, supply, transfer or export, directly or indirectly, equipment, technology or software identified in Annex V, whether or not originating in the Union, to any person, entity or body in Syria or for use in Syria, unless the competent authority of the relevant Member State, as identified in the websites referred to in Annex III, has given prior authorisation.
2. The competent authorities of the Member States, as identified in the websites referred to in Annex III, shall not grant any authorisation under paragraph 1 if they have reasonable grounds to determine that the equipment, technology or software in question would be used for monitoring or interception, by the Syrian regime or on its behalf, of internet or telephone communications in Syria.
3. Annex V shall include equipment, technology or software which may be used for the monitoring or interception of internet or telephone communications.
4. The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this Article, within four weeks following the authorisation.
Article 5
1. It shall be prohibited:
(a)
to provide, directly or indirectly, technical assistance or brokering services related to the equipment, technology and software identified in Annex V, or related to the provision, manufacture, maintenance and use of the equipment and technology identified in Annex V or to the provision, installation, operation or updating of any software identified in Annex V, to any person, entity or body in Syria or for use in Syria;
(b)
to provide, directly or indirectly, financing or financial assistance related to the equipment, technology and software identified in Annex V, to any person, entity or body in Syria or for use in Syria;
(c)
to provide any telecommunication or internet monitoring or interception services of any kind to, or for the direct or indirect benefit of, the State of Syria, its Government, its public bodies, corporations and agencies or any person or entity acting on their behalf or at their direction; and
(d)
to participate, knowingly and intentionally, in any activity the object or effect of which is to circumvent the prohibitions referred to in point (a), (b) or (c) above;
unless the competent authority of the relevant Member State, as identified in the websites referred to in Annex III, has given prior authorisation, on the basis set out in Article 4(2).
2. For the purposes of paragraph 1(c), ‧telecommunication or internet monitoring or interception services‧ means those services that provide, in particular using equipment, technology or software as identified in Annex V, access to and delivery of a subject's incoming and outgoing telecommunications and call-associated data for the purpose of its extraction, decoding, recording, processing, analysis and storing or any other related activity.
Article 6
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, as well as insurance and re-insurance, related to the prohibitions set out in points (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 point (a), (b), (c) or (d).
Article 7
The prohibitions in Article 6 shall not apply to:
(a)
the execution, on or prior to 15 November 2011, of an obligation arising from a contract concluded before 2 September 2011, provided that the natural or legal person, entity or body seeking to perform the obligation concerned has notified, at least seven 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 2 September 2011, or, where the export was made pursuant to point (a), on or prior to 15 November 2011.
Article 8
1. It shall be prohibited to sell, supply, transfer or export the equipment or technology listed in Annex VI, directly or indirectly, to any Syrian person, entity or body, or for use in Syria.
2. Annex VI shall include key equipment and technology for the following sectors of the oil and gas industry in Syria:
(a)
exploration of crude oil and natural gas;
(b)
production of crude oil and natural gas;
(c)
refining;
(d)
liquefaction of natural gas.
3. Annex VI shall not include items included in the Common Military List.
Article 9
It shall be prohibited:
(a)
to provide, directly or indirectly, technical assistance or brokering services related to the equipment and technology listed in Annex VI, or related to the provision, manufacture, maintenance and use of goods listed in Annex VI, to any Syrian person, entity or body, or for use in Syria;
(b)
to provide, directly or indirectly, financing or financial assistance related to the equipment and technology listed in Annex VI, to any Syrian person, entity or body; or for use in Syria, and
(c)
to participate, knowingly and intentionally, in any activity the object or effect of which is to circumvent the prohibitions referred to in point (a) or (b).
Article 10
1. The prohibitions in Articles 8 and 9 shall not apply to the performance of an obligation required by a contract which was awarded or concluded prior to 19 January 2012, provided that the person or entity seeking to rely on this Article has notified, at least 21 calendar days in advance, the competent authority of the Member State in which they are established, as identified on the websites listed in Annex III.
2. For the purposes of this Article, a contract shall have been ‧awarded‧ to a person or entity if express written confirmation of the award of the contract to that person or entity has been sent by the other contracting party, following the conclusion of a formal tender process.
Article 11
It shall be prohibited to sell, supply, transfer or export, directly or indirectly, new Syrian denominated banknotes and coinage, printed or minted in the Union, to the Central Bank of Syria.
CHAPTER III
RESTRICTIONS ON PARTICIPATION IN INFRASTRUCTURE PROJECTS
Article 12
1. It shall be prohibited:
(a)
to sell, supply, transfer or export equipment or technology to be used in the construction or installation in Syria of new power plants for electricity production, as listed in Annex VII;
(b)
to provide, directly or indirectly, financial or technical assistance in relation to any project referred to in point (a).
2. This prohibition shall not apply to the performance of an obligation required by a contract or agreement which was concluded prior to 19 January 2012, provided that the person or entity seeking to rely on this Article has notified, at least 21 calendar days in advance, the competent authority of the Member State in which they are established, as identified on the websites listed in Annex III.
CHAPTER IV
RESTRICTIONS ON FINANCING CERTAIN ENTERPRISES
Article 13
1. The following shall be prohibited:
(a)
the granting of any financial loan or credit to any Syrian person, entity or body referred to in paragraph 2;
(b)
the acquisition or extension of a participation in any Syrian person, entity or body referred to in paragraph 2;
(c)
the creation of any joint venture with any Syrian person, entity or body referred to in paragraph 2;
(d)
the participation, knowingly and intentionally, in activities the object or effect of which is to circumvent the prohibitions referred to in point (a), (b) or (c).
2. The prohibitions in paragraph 1 shall apply to any Syrian person, entity or body engaged in:
(a)
the exploration, production or refining of crude oil; or
(b)
the construction or installation of new power plants for electricity production.
3. For the purposes of paragraph 2 only, the following definitions shall apply:
(a)
‧exploration of crude oil‧ includes the exploration for, prospecting for and management of crude oil reserves, as well as the provision of geological services in relation to such reserves;
(b)
‧refining of crude oil‧ means the processing, conditioning or preparation of oil for the ultimately final sale of fuels.
4. The prohibitions in paragraph 1:
(a)
shall be without prejudice to the execution of an obligation arising from contracts or agreements relating to:
(i)
the exploration, production or refining of crude oil, concluded before 23 September 2011;
(ii)
the construction or installation of new power plants for electricity production concluded prior to 19 January 2012;
(b)
shall not prevent the extension of a participation relating to:
(i)
the exploration, production or refining of crude oil, if such extension is an obligation under an agreement concluded before 23 September 2011;
(ii)
the construction or installation of new power plants for electricity production if such extension is an obligation under an agreement concluded prior to 19 January 2012.
CHAPTER V
FREEZING OF FUNDS AND ECONOMIC RESOURCES
Article 14
1. All funds and economic resources belonging to, owned, held or controlled by the natural or legal persons, entities and bodies listed in Annex II and IIa shall be frozen.
2. No funds or economic resources shall be made available, directly or indirectly, to or for the benefit of the natural or legal persons, entities or bodies listed in Annex II and IIa.
3. The participation, knowingly and intentionally, in activities the object or effect of which is, directly or indirectly, to circumvent the measures referred to in paragraphs 1 and 2 shall be prohibited.
Article 15
1. Annexes II and IIa shall consist of the following:
(a)
Annex II shall consist of a list of natural or legal persons, entities and bodies who, in accordance with Article 19(1) of Decision 2011/782/CFSP, have been identified by the Council as being persons or entities responsible for the violent repression against the civilian population in Syria, persons and entities benefiting from or supporting the regime, and natural or legal persons and entities associated with them, and to whom Article 21 of this Regulation shall not apply;
(b)
Annex IIa shall consist of a list of entities which, in accordance with Article 19(1) of Decision 2011/782/CFSP, have been identified by the Council as being entities associated with the persons or entities responsible for the violent repression against the civilian population in Syria, or with persons and entities benefiting from or supporting the regime, and to which Article 21 of this Regulation shall apply.
2. Annexes II and IIa shall include the grounds for the listing of listed persons, entities and bodies concerned.
3. Annexes II and IIa shall also include, where available, information necessary to identify the natural or legal persons, entities and bodies concerned. With regard to natural persons, such information may include names including aliases, date and place of birth, nationality, passport and ID card numbers, gender, address, if known, and function or profession. With regard to legal persons, entities and bodies, such information may include names, place and date of registration, registration number and place of business.
Article 16
By way of derogation from Article 14, the competent authorities in the Member States as identified on the websites listed in Annex III may authorise the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources, under such conditions as they deem appropriate, after having determined that the funds or economic resources are:
(a)
necessary to satisfy the basic needs of persons listed in Annexes II and IIa and their dependent family members, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;
(b)
intended exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services;
(c)
intended exclusively for 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 the grounds on which it considers that a specific authorisation should be granted to the competent authorities of the other Member States and to the Commission at least two weeks before the authorisation;
(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;
(f)
necessary for humanitarian purposes, such as delivering or facilitating the delivery of assistance, including medical supplies, food, humanitarian workers and related assistance, or evacuations from Syria.
The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this Article within four weeks following the authorisation.
Article 17
By way of derogation from Article 14, the competent authorities in the Member States as identified on the websites listed in Annex III may authorise the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources, under such conditions as they deem appropriate, after having determined that the provision of such funds or economic resources are necessary for the essential energy needs of the civilian population in Syria, provided that the relevant competent authority has notified for each delivery contract the grounds on which it considers that a specific authorisation should be granted to the competent authorities of the other Member States and to the Commission at least four weeks before the authorisation.
Article 18
By way of derogation from Article 14, the competent authorities in the Member States as listed in Annex III may authorise the release of certain frozen funds or economic resources, if the following conditions are met:
(a)
the funds or economic resources in question are the subject of a judicial, administrative or arbitral lien established prior to the date on which the person, entity or body referred to in Article 14 was included in Annex II or IIa, or of a judicial, administrative or arbitral judgment rendered prior to that date;
(b)
the funds or economic resources in question will be used exclusively to satisfy claims secured by such a lien or recognised as valid in such a judgment, within the limits set by applicable laws and regulations governing the rights of persons having such claims;
(c)
the lien or judgment is not for the benefit of a person, entity or body listed in Annex II or IIa; and
(d)
recognising the lien or judgment is not contrary to public policy in the Member State concerned.
The relevant Member State shall inform the other Member States and the Commission of any authorisation granted under this Article.
Article 19
1. Article 14(2) shall not apply to the addition to frozen accounts of:
(a)
interest or other earnings on those accounts; or
(b)
payments due under contracts, agreements or obligations that were concluded or arose before the date on which the account became subject to this Regulation,
provided that any such interest, other earnings and payments are frozen in accordance with Article 14(1).
2. Article 14(2) shall not prevent financial or credit institutions in the Union from crediting frozen accounts where they receive funds transferred to the account of a listed natural or legal person, entity or body, provided that any additions to such accounts will also be frozen. The financial or credit institution shall inform the relevant competent authority about any such transaction without delay.
Article 20
By way of derogation from Article 14 and provided that a payment by a person, entity or body listed in Annex II or IIa is due under a contract or agreement that was concluded by, or an obligation that arose for the person, entity or body concerned before, the date on which that person, entity or body had been designated, the competent authorities of the Member States, as indicated on the websites listed in Annex III, may authorise, under such conditions as they deem appropriate, the release of certain frozen funds or economic resources, provided that the payment is not directly or indirectly received by a person or entity referred to in Article 14.
Article 21
By way of derogation from Article 14(1), an entity listed in Annex IIa may, for a period of two months from the date on which it was designated, make a payment from frozen funds or economic resources which were received by that entity after the date on which it was designated, provided that:
(a)
such payment is due under a trade contract; and
(b)
the competent authority of the relevant Member State has determined that the payment will not directly or indirectly be received by a person or entity listed in Annex II or Annex IIa.
Article 22
The freezing of funds and economic resources or the refusal to make funds or economic resources available, carried out in good faith on the basis that such action is in accordance with this Regulation, shall not give rise to liability of any kind on the part of the natural or legal person or entity or body implementing it, or its directors or employees, unless it is proved that the funds and economic resources were frozen or withheld as a result of negligence.
CHAPTER VI
RESTRICTIONS ON FINANCIAL SERVICES
Article 23
The European Investment Bank (EIB) shall:
(a)
be prohibited from making any disbursement or payment under or in connection with any existing loan agreements entered into between the State of Syria or any public authority thereof and the EIB; and
(b)
suspend all existing Technical Assistance Service Contracts relating to projects financed under the loan agreements referred to in point (a), and which are intended for the direct or indirect benefit of the State of Syria or any public authority thereof to be performed in Syria.
Article 24
It shall be prohibited:
(a)
to sell or purchase Syrian public or public-guaranteed bonds issued after 19 January 2012, directly or indirectly, to or from any of the following:
(i)
the State of Syria or its Government, and its public bodies, corporations and agencies;
(ii)
any Syrian credit or financial institution;
(iii)
a natural person or a legal person, entity or body acting on behalf or at the direction of a legal person, entity or body referred to in (i) or (ii);
(iv)
a legal person, entity or body owned or controlled by a person, entity or body referred to in (i), (ii) or (iii);
(b)
to provide brokering services with regard to Syrian public or public-guaranteed bonds issued after 19 January 2012, to a person, entity or body referred to in point (a);
(c)
to assist a person, entity or body referred to in point (a) in order to issue Syrian public or public-guaranteed bonds, by providing brokering services, advertising or any other service with regard to such bonds.
Article 25
1. It shall be prohibited for credit and financial institutions falling within the scope of Article 35 to:
(a)
open a new bank account with any Syrian credit or financial institution;
(b)
to establish a new correspondent banking relationship with any Syrian credit or financial institution;
(c)
to open a new representative office in Syria or to establish a new branch or subsidiary in Syria;
(d)
to establish a new joint venture with any Syrian credit or financial institution.
2. It shall be prohibited:
(a)
to authorise the opening of a representative office or the establishment of a branch or subsidiary in the Union of any Syrian credit or financial institution;
(b)
to conclude agreements for, or on behalf of, any Syrian credit or financial institution, pertaining to the opening of a representative office or the establishment of a branch or subsidiary in the Union;
(c)
to grant an authorisation for taking up and pursuing the business of a credit or financial institution or for any other business requiring prior authorisation, by a representative office, branch or subsidiary of any Syrian credit or financial institution, if the representative office, branch or subsidiary was not operational before 19 January 2012;
(d)
to acquire or to extend a participation, or to acquire any other ownership interest in a credit or financial institution falling within the scope of Article 35 by any Syrian credit or financial institution.
Article 26
1. It shall be prohibited:
(a)
to provide insurance or re-insurance to:
(i)
the State of Syria, its Government, its public bodies, corporations or agencies; or
(ii)
any natural or legal person, entity or body when acting on behalf or at the direction of a legal person, entity or body referred to in (i);
(b)
to participate, knowingly and intentionally, in activities, the object or effect of which is to circumvent the prohibitions in point (a).
2. Paragraph 1(a) shall not apply to the provision of compulsory or third party insurance to Syrian persons, entities or bodies based in the Union or to the provision of insurance for Syrian diplomatic or consular missions in the Union.
3. Point (ii) of paragraph 1(a) shall not apply to the provision of insurance, including health and travel insurance, to individuals acting in their private capacity, and re-insurance relating thereto.
Point (ii) of paragraph 1(a) shall not prevent the provision of insurance or re-insurance to the owner of a vessel, aircraft or vehicle chartered by a person, entity or body referred to in point (i) of paragraph 1(a) and which is not listed in Annex II or IIa.
For the purpose of point (ii) of paragraph 1(a), a person, entity or body shall not be considered to act at the direction of a person, entity or body referred to in point (i) of paragraph 1(a) where that direction is for the purposes of docking, loading, unloading or safe transit of a vessel or aircraft temporarily in Syrian waters or airspace.
4. This Article prohibits the extension or renewal of insurance and re-insurance agreements concluded before 19 January 2012 (save where there is a prior contractual obligation on the part of the insurer or re-insurer to accept an extension or renewal of a policy), but, without prejudice to Article 14(2), it does not prohibit compliance with agreements concluded before that date.
CHAPTER VII
GENERAL AND FINAL PROVISIONS
Article 27
No claims, including for compensation or indemnification or any other claim of this kind, such as a claim of set-off, fines or claims under a guarantee, claims for extension or payment of a bond, financial guarantee, including claims arising from letters of credit and similar instruments 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, its public bodies, corporations and agencies, or to any person or entity claiming through it or for its benefit.
Article 28
The prohibitions set out in this Regulation shall not give rise to any liability of any kind on the part of the natural or legal person, entity or body concerned if they did not know, and had no reasonable cause to suspect, that their actions would infringe the prohibition in question.
Article 29
1. Without prejudice to the applicable rules concerning reporting, confidentiality and professional secrecy, natural and legal persons, entities and bodies shall:
(a)
supply immediately any information which would facilitate compliance with this Regulation, such as accounts and amounts frozen in accordance with Article 14, to the competent authority in the Member State where they are resident or located, as indicated on the websites listed in Annex III, and shall transmit such information, either directly or through the Member States, to the Commission; and
(b)
cooperate with that competent authority in any verification of this information.
2. Any information provided or received in accordance with this Article shall be used only for the purposes for which it was provided or received.
Article 30
Member States and the Commission shall immediately inform each other of the measures taken under this Regulation and shall supply each other with any other relevant information at their disposal in connection with this Regulation, in particular information in respect of violation and enforcement problems and judgments handed down by national courts.
Article 31
The Commission shall be empowered to amend Annex III on the basis of information supplied by Member States.
Article 32
1. Where the Council decides to subject a natural or legal person, entity or body to the measures referred to in Article 14, it shall amend Annex II or Annex IIa accordingly.
2. The Council shall communicate its decision, including the grounds for listing, to the natural or legal person, entity or body referred to in paragraph 1, either directly, if the address is known, or through the publication of a notice, providing such natural or legal person, entity or body with an opportunity to present observations.
3. Where observations are submitted, or where substantial new evidence is presented, the Council shall review its decision and inform the natural or legal person, entity or body accordingly.
4. The lists in Annexes II and IIa shall be reviewed at regular intervals and at least every 12 months.
Article 33
1. Member States shall lay down the rules on penalties applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive.
2. Member States shall notify the Commission of those rules without delay after 19 January 2012 and shall notify it of any subsequent amendment.
Article 34
Where there is, in this Regulation, a requirement to notify, inform or otherwise communicate with the Commission, the address and other contact details to be used for such communication shall be those indicated in Annex III.
Article 35
This Regulation shall apply:
(a)
within the territory of the Union, including its airspace;
(b)
on board any aircraft or any vessel under the jurisdiction of a Member State;
(c)
to any person inside or outside the territory of the Union who is a national of a Member State;
(d)
to any legal person, entity or body which is incorporated or constituted under the law of a Member State;
(e)
to any legal person, entity or body in respect of any business done in whole or in part within the Union.
Article 36
Regulation (EU) No 442/2011 is repealed.
Article 37
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, 18 January 2012.