Russia

Global sanctions guide

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  1. Does Russia have a sanctions regime in place?

Yes. Russia’s regime must be complied with by any individual or entity within Russia.

  1. Does Russia implement UN sanctions?

Yes. In relation to persons that have been sanctioned by the UN, in accordance with federal law No. 281-FZ dated 22 December 2006 ‘On Special Economic Measures’, special Presidential Decrees are issued to identify the sanctioned individuals.

  1. Does Russia implement an autonomous sanctions regime?

Yes. Russia has an autonomous sanctions regime under its federal law No. 183-FZ dated 18 July 1999 ‘On Export Control’. The following activities are subject to export controls in Russia: foreign trade activity involving goods, information, work, services and intellectual property rights that may be used in the development of weapons of mass destruction, their delivery vehicles and other types of arms and military equipment, or in the preparation and/or performance of terrorist attacks. There are a number of other sanctions, including those imposed in retaliation for sanctions against Russia by the West. These include, for example: sanctions against American and Canadian individuals and a ban on imports by foreign economic operators from various countries including the US, EU, UK, Norway, Canada and Australia for certain types of food products.

  1. What is the nature of the sanctions regime in Russia?

Russia has a series of Presidential decrees that implement its export control rules. Generally speaking, there is at least one decree, with a corresponding list of controlled items, for each of the regimes. This system of multiple control lists is different from the system used by the US and many of the other members of the multilateral export control regimes. Russia also has a form of catch-all controls that prohibits exports of uncontrolled items if the exporter knows they will be used for developing or operating weapons of mass destruction or missile delivery systems.

  1. Does Russia maintain a list of sanctioned individuals and entities?

No.

  1. Are there any other lists related to sanctions?

Yes. The Federal Financial Monitoring Service maintains a list of organisations and individuals against whom there is evidence of participation in extremist activities or terrorism. The list can be accessed here.

  1. Does Russia have a licensing or authorisation system in place?

Yes. It is possible to obtain a licence from the Russian Federation Federal Service for Technical and Export Control. In addition, the Russian Government can also issue a general licence if it is satisfied that the applicant maintains an adequate internal export control programme and also obtains a state accreditation certificate in respect of such a programme. There is also the possibility to obtain a permit from the Russian Federation Export Control Commission for temporary exports of goods and technologies. Under this provision, a permanent transfer to a foreign party is not allowed and the permit holder is obliged to return the goods and technology back to Russia. Under the terms of a permit, the goods and technology exported must always be controlled by a Russian entity.

  1. What are the consequences for a breach of sanctions in Russia?

In relation to transfer of goods in violation of the Russian export control regime, the offending Russian entity and/or its employees would be liable for fines and/or criminal sanctions. Part 1, Article 14.20 of the Russian Federation Administrative Offences Code stipulates an administrative fine equal to the value of the subject of an administrative offence (along with possible confiscation of goods), for conducting foreign trade activities without a special licence.

Failure to comply with the established accounting procedures for foreign trade transactions can lead to fines of 1,000 to 2,000 Roubles for individuals and 10,000 to 20,000 Roubles for legal entities (Part 2, Article 14.20 of the Russian Federation Administrative Offences Code).

Moreover, a person found guilty of breaching article 189 of the Russian Federation Criminal Code (which deals with the illegal transfer of scientific and technical information to a foreign company or its representative for the purposes of development of arms, military equipment, weapons of mass destruction and their delivery) can be imprisoned for up to 7 years, and fined up to 1,000,000 Roubles or an amount equal to a salary/other income for a period of up to 5 years.

An organisation can also be banned from engaging in certain types of foreign trade activities, if it is found that its actions have resulted in substantial damage to the political and economic interests of the Russian Federation or to Russia’s defence and state security.

  1. Who are the relevant regulators in Russia and what are their contact details?

The Russian Federation Export Control Commission
The Russian Federal Service for Technical and Export Control

17, Staraya Basmannaya St., 105175, Moscow.

T: (+7) (495) 606 14 73
E: postin@fstec.ru

Federal Financial Monitoring Service (Rosfinmonitoring)

Build.1, 39, Myasnitskaya St., 107450, Moscow.

T: (+7) (495) 627 33 97
E: info@fedsfm.ru

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