EU Law and Practice Contributed by: Edward Borovikov, Laurens Engelen, Xiaoyi Tang and Semen Medvedkov, Dentons
and ensuring adherence to EU regulations, including those pertaining to sanctions. This process involves a careful balancing act considering legal principles, international obligations and the unique circumstanc - es of each case presented. The courts meticulously evaluate each case to ensure that the enforcement aligns with both the letter and spirit of the law while respecting the overarching framework of EU sanc - tions.
of EU sanctions across all member states. DG FISMA increasingly supports member states in their efforts to apply sanctions by answering questions pertaining to interpretation raised by national competent authori - ties, as well as economic and humanitarian operators. Lastly, as noted in the foregoing, competent authori - ties of member states are primarily responsible for the implementation of all sanctions within their national jurisdictions. They work in close co-operation with the EEAS, the relevant EU delegations and the Commis - sion towards the implementation of sanctions. 7.2 Scope of Designation In the EU, asset-freeze measures cover all funds and economic resources belonging to or owned by des - ignated persons and entities, as well as those held or controlled by such persons and entities. They are equally extended to entities owned or con - trolled by designated persons, as clarified in various guiding instruments, including the EU best practices for the effective implementation of restrictive meas - ures or the EU’s guidance on the implementation of restrictive measures vis-à-vis Russia. This ensures that sanctions are effectively enforced and that desig - nated persons cannot easily circumvent the measures by operating through intermediaries or related entities. According to the EU best practices for the effective implementation of restrictive measures, ownership is defined as the possession of more than 50% of the proprietary rights of an entity or having a majority interest in it. If this criterion is satisfied, it is considered that the legal person or entity is owned by another person or entity. To assess the control criterion, it is necessary to con - sider whether a person or entity has the right or power to appoint or remove a majority of the members of the administrative, management or supervisory body of such legal person or entity, and: • has been appointed solely as a result of the exercise of the voting rights of a majority of the members of the administrative, management or supervisory bodies of a legal person or entity who
7. Designation, Compliance and Circumvention 7.1 Executive Body
Any sanction proposals, including reviews aiming for the repeal of a measure or insertion of an exemp - tion clause, are first drafted by the relevant working groups of the Council of the EU. These proposals are then referred to the Council for action. The key Council working group on EU sanctions is the Working Party of Foreign Relations Counsellors (RELEX). The EEAS assists the High Representative of the Union for Foreign Affairs and Security Policy in fulfilling their mandate, and has a key role in the preparation, main - tenance and review of sanctions, as well as in the communication and outreach activities concerning them in close co-operation with EU member states, relevant EU delegations and the Commission. In the legislative process regarding sanctions, the EEAS deals with preparation of the High Representa - tive’s proposals for a decision, and with the Commis - sion’s proposals for regulations that are subsequently reviewed and adopted by the Council. Regulations are directly applicable within the EU and are binding on individuals and entities, including economic opera - tors. For its part, the Commission presents proposals for regulations jointly with the High Representative. DG FISMA prepares proposals for regulations on sanctions for adoption by the Council and represents the Commission in sanctions-related discussions with member states at the Council Working Party of For - eign Relations Counsellors. DG FISMA is also in charge of monitoring, on behalf of the Commission, the implementation and enforcement
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