EU Law and Practice Contributed by: Edward Borovikov, Laurens Engelen, Aurore Ancion and Semen Medvedkov, Dentons
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 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. Any sanction proposals, including reviews aiming for the repeal of a measure or insertion of an exemption 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 Euro - pean External Action Service (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, maintenance and review of sanctions, as well as in the communication and out - reach activities concerning them in close co-operation with EU member states, relevant EU delegations and the European Commission. 7. Designation, Compliance and Circumvention 7.1 Executive Body In the legislative process regarding sanctions, the EEAS deals with preparation of the High Representa - tive’s proposals for a decision, and with the Europe -
an Commission’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 eco - nomic operators. For its part, the European Commis - sion presents proposals for regulations jointly with the High Representative. DG FISMA prepares proposals for regulations on sanctions for adoption by the Council of the European Union and represents the Commission in sanctions- related discussions with member states at the Council Working Party of Foreign Relations Counsellors. DG FISMA is also in charge of monitoring, on behalf of the European Commission, the implementation and enforcement of EU sanctions across all member states. DG FISMA is increasingly supporting member states in their efforts to apply sanctions by answer - ing questions pertaining to interpretation raised by national competent authorities, 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 European Commission towards the implementation of sanc - tions. 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.
86
CHAMBERS.COM
Powered by FlippingBook