NETHERLANDS Law and Practice Contributed by: Sebastiaan Bennink, Daniel Webb, Charlotte Loomans and Siqi Zhao, Bennink Dunin-Wasowicz
the specifically designed product could not be sent to the client due to sanctions-related export restrictions. 6.2 Enforcement As far as is known, there are no public court judg - ments regarding the enforcement of judgments involv - ing sanctions issues. 7. Designation, Compliance and Circumvention 7.1 Executive Body Depending on the source of the sanctions regime, designation is decided by: • the EU Council for EU Sanctions; or • the Dutch Minister of Foreign Affairs for the Nation - EU restrictive measures, particularly Regulation 269/2014 regarding Russia, provide that “all funds and economic resources belonging to, or owned, held or controlled by, sanctioned natural and legal persons shall be frozen”, which presumably includes the con - trolled or owned assets of companies owned or con - trolled by the designated person or entity, according to the Commission FAQs. The following guidance was given by the Council in its Best Practices for the effective implementation of restrictive measures. al Terrorism Sanctions List. 7.2 Scope of Designation • Ownership means the possession of 50% or more of the proprietary rights of an entity or having a majority interest in it. • Control includes: (a) having the right or exercising the power to appoint or remove a majority of the members of the administrative, management or supervi - sory body of such legal person or entity; (b) having appointed solely as a result of the exercise of one’s voting rights a majority of the members of the administrative, management or supervisory bodies of a legal person or entity who have held office during the present and previous financial year;
(c) controlling alone, pursuant to an agreement with other shareholders in or members of a le- gal person or entity, a majority of shareholders’ or members’ voting rights in that legal person or entity; (d) having the right to exercise a dominant influ - ence over a legal person or entity, pursuant to an agreement entered into with that legal per - son or entity, or to a provision in its Memoran - dum or Articles of Association, where the law governing that legal person or entity permits its being subject to such agreement or provision; (e) having the power to, de facto, exercise the right to exercise a dominant influence referred to above, without being the holder of that right; (f) having the right to use all or part of the assets of a legal person or entity; (g) managing the business of a legal person or entity on a unified basis, while publishing con - solidated accounts; and (h) sharing jointly and severally the financial liabili - ties of a legal person or entity, or guaranteeing them. 7.3 Circumvention 7.3.1 Prohibiting Provisions Most EU regulations provide specific prohibitions against participating, knowingly or intentionally, in any activity the object or effect of which is to circumvent the prohibitions of the particular provision in which it is mentioned. In addition, similar circumvention pro - hibitions are provided in general terms in some regu - lations, such as those related to Russia (Article 12 of Regulation 833/2014 and Article 9 of Regulation 269/2014). The Russia sanctions regime also contains a specific anti-circumvention tool. Under Regulation 833/2014, Article 12f(3), the EU may list certain high-risk goods and technologies, together with specific third coun - tries, in Annex XXXIII where those countries have systematically and persistently failed to prevent the re-export of such items to Russia. Once activated, this allows the EU to prohibit the sale, supply, transfer or export of those listed items to the listed third country. This mechanism has now been activated for the first time (see 1.2 Key Trends ).
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