AUSTRIA Law and Practice Contributed by: Anna Zeitlinger, Gabriel Lansky, Philip Goeth and Konstantin Oppolzer, Lansky Ganzger Goeth + Partner Rechtsanwälte GmbH
Lansky Ganzger Goeth + Partner Rechtsanwälte GmbH Biberstrasse 5 1010 Vienna Austria
Tel: +43 1 5333 333 Fax: +43 1 5328 417 Email: office@lasnky.at Web: www.lansky.at
1. Trends and Overview 1.1 Sanctions Market
1.4 Overview 1.4.1 Types of Sanctions
As an EU member state, Austria is automatically bound by the EU sanctions regulations. This involves, among others, the sanctions against Russia, Belarus, Iran, Syria and Venezuela but also sanctions against individuals who are allegedly connected to supporting sanctioned regimes. These sanctions include finan - cial sanctions in the form of asset freezing measures and travel restrictions on the one hand, and econom - ic sanctions aimed at specific industrial sectors of a country/sanctioned nation on the other hand. 1.4.2 Scope of Sanctions Austrian nationals must comply with EU sanctions worldwide. Anyone on Austrian territory must adhere to EU sanctions as well. Companies from third coun - tries must comply with EU sanctions in Austria only to the extent it concerns a business in the EU. Strictly speaking, EU sanctions do not apply extrater - ritorially unless there is a nexus to the EU, for exam - ple, the person concerned being an EU national or a company incorporated in the EU. Non-EU persons, acting outside of EU territory generally do not need to comply with EU sanctions, unless there is a qualified nexus to a business in the EU. Note, however, that aiding and abetting sanctions circumvention outside the EU may be a cause for a sanctions designation under an EU sanctions regime, eg, sanctions against Russia and Belarus.
In terms of the sanctions sector, the Austrian sanc - tions market is largely determined by the EU sanctions legislation. The introduction of certain anti-circum - vention tools, like the “best-efforts obligation” or the “No-Russia Clause” certainly increased the demand for sanctions work for multinational corporations who deal with international supply chains. The demand for tailored compliance programs is rising as enforce - ment actions for sanctions violations will increase in the future. 1.2 Key Trends Austrian corporations dedicate more resources to compliance efforts and extend these efforts to sub - sidiaries as well. This is because subsidiaries of EU companies in third countries must essentially comply with EU sanctions. Moreover, the divergence between US, UK and EU sanctions requires increased attention especially in light of a potential secondary sanctions listing in the US. 1.3 Key Industries Austria is an export-heavy country with a certain dependence on the import of many raw materials. Thus, sanctions affect all kinds of industries, from food and retail throughout heavy machinery. Austria’s oil & gas industry is affected as well as the banking and financial services industry.
30 CHAMBERS.COM
Powered by FlippingBook