EU Law and Practice Contributed by: Edward Borovikov, Laurens Engelen, Xiaoyi Tang and Semen Medvedkov, Dentons
Iran The EU has taken a firm stance on issues concern - ing Iran by implementing sanctions that are specifi - cally targeted at the nation’s nuclear programme and the human rights concerns within its borders. These sanctions encompass a broad array of restrictions, particularly in the financial services sector, where there is a comprehensive ban on the provision of financial services, including insurance and reinsurance. The energy sector is also significantly affected, with explic - it prohibitions on offering services that are connect - ed to the exploration and production of oil and gas. The legal framework underpinning these sanctions is encapsulated in Council Regulation (EU) No 267/2012, which serves as the principal legal instrument govern - ing the scope and application of the restrictive meas - ures imposed by the EU on Iran. Libya The EU’s response to the situation in Libya has been to enforce sanctions through financial restrictions on transactions with certain Libyan entities and prohibi - tion of the provision of military-related services and equipment, as delineated in Council Regulation (EU) No 204/2011 and its subsequent update, Council Regulation (EU) No 2016/44. 5.2 Goods Trade and export restrictions are regulatory measures imposed by countries or international bodies to con - trol the flow of goods to and from specific countries for various reasons, including political, security, eco - nomic or social concerns. Countries such as Russia, Belarus, Iran, Libya and Syria have been subject to various trade and export restrictions, often due to geopolitical tensions, human rights issues or concerns about the proliferation of weapons of mass destruc - tion. In the wake of Russia’s involvement in Ukraine and Belarus’s support for these actions, a multitude of import and export restrictions and export control measures have been implemented. These sanctions encompass a broad range of goods, targeting the fol -
• goods and technology that might contribute to mili - tary and technological enhancement; • firearms, their parts and essential components and ammunition; • certain equipment and pipes for the extraction of fossil fuels (including oil and gas), oil refining and liquefaction of natural gas goods; • goods and technology suited for use in aviation or the space industry; • maritime navigation goods and technology; • luxury goods; and • goods that could contribute in particular to the enhancement of state industrial capacities. The EU has codified controls on dual-use items in Regulation (EU) 2021/821. The EU’s legal landscape is characterised by a nuanced approach when it comes to the interplay between sanctions compliance and contractual obligations. The courts are tasked with the delicate responsibility of ensuring that the enforcement of sanctions is consistent with the rule of law while also maintaining fairness within contractual engagements. It is equally important to recall that the governing law of a particular contractual relationship has a signifi - cant impact on this interplay with EU sanctions. 6. Civil Litigation and Arbitration 6.1 Force Majeure EU sectoral sanctions programmes include standard non-liability clauses dismissing any claims in connec - tion with any contract or transaction whose perfor - mance has been affected, directly or indirectly – in whole or in part – by the sanctions regime in question. The EU’s sanctions regime vis-à-vis Russia specifi - cally provides that no claims in connection with any contract or transaction that has been affected by EU sanctions shall be satisfied when made by any Rus - sian person or entity, with the burden of evidence that the conduct is not prohibited by EU sanctions having shifted to the claimant. 6.2 Enforcement EU courts have approached the enforcement of judg - ments involving sanctions by prioritising the rule of law
lowing categories: • dual-use goods;
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