NETHERLANDS Law and Practice Contributed by: Sebastiaan Bennink, Daniel Webb, Charlotte Loomans and Siqi Zhao, Bennink Dunin-Wasowicz
• a continued shift away from isolated listings of people and entities in the EU Russia sanctions regime towards a framework targeting supply chains, facilitation networks and enforcement gaps; • the first activation of the Anti-Circumvention Tool in relation to Kyrgyzstan due to the country’s sys - tematic failure to prevent the export to Russia of machine tools and telecommunications equipment used in the manufacture of drones and missiles; • an increased number of listings targeting Russian banks/financial institutions, as well as third-country financial/crypto entities; • new transaction bans targeting oil refineries and traders, including in third countries; • enhanced enforcement of EU sanctions through multiple national enforcement authorities; • strengthened anti-circumvention and due diligence requirements, with increased enforcement; and • expanded targeting of hybrid threats and shadow- fleet vessels, accompanied by a growing number of designations. 1.3 Key Industries Many economic sectors are impacted by the broad scope of sanctions measures. In the Netherlands, the following industries are particularly affected: • the sensitive technology industry – specifically the semiconductor, quantum technology and AI tech - nology sectors; • the defence industry; • the shipbuilding industry; • the logistics and transport industry; • the financial sector; • the luxury goods industry; • the energy industry; • the metals and raw materials industry; • crypto and fintech; • professional and business services; and • companies engaged in activities involving dual-use and/or military items. 1.4 Overview 1.4.1 Types of Sanctions The Dutch Sanctions Act 1977 ( Sanctiewet 1977) empowers the Dutch government to implement and enforce sanctions adopted by the EU and the United
Nations without the need for separate national legis - lation. Therefore, the Netherlands adopts sanctions that have been agreed to by the UN or the EU, and does not generally operate an autonomous sanctions regime (although see 1.4.3 Domestic and/or Supra- national Measures for some notable exceptions). The types of sanctions the Netherlands adopts are comprised of: • targeted sanctions – ie, sanctions targeting indi - viduals through asset freezes and travel bans; and • sectoral sanctions – ie, economic sanctions that, amongst other effects, prohibit transactions within certain sectors in a sanctioned territory, prohibit the import or export of certain goods, or prohibit transactions with specific listed entities in a sector. 1.4.2 Scope of Sanctions As the Netherlands implements EU sanctions, the general scope of EU sanctions is relevant. These typi - cally apply: • within the territory of the EU, including its airspace; • onboard any aircraft or vessel under the jurisdiction of an EU member state; • to any natural person, inside or outside the EU, who is a national of an EU member state; • to any legal person, entity or body, inside or out - side the EU, that is incorporated or constituted under the law of an EU member state; and • to any legal person, entity or body, in respect of any business conducted wholly or partly within the EU. Although EU sanctions are not formally extraterritorial in nature, certain provisions do have extraterritorial effects. For example: • Article 8a of Regulation 833/2014 introduces a “best efforts” obligation, requiring EU operators to ensure that entities they own or control, even if located in third countries, do not engage in activi - ties that undermine EU restrictive measures; and • Article 12g of Regulation 833/2014 imposes an obligation to contractually prohibit the re-export of certain items to Russia.
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