In short, wider than originally anticipated. We previously analysed the targeted oil and gas restrictions regarding “equipment or technologies” listed in Annex II of Regulation 833/2014. These restrictions prohibit the sale, supply, transfer or export of Annex II technologies relating to “deep water oil exploration and production, Arctic oil exploration and production, or shale oil projects in Russia” to or for use in Russia.
Currently the Regulation lists (only) goods which are referenced through the use of the 8-digit CN commodity codes. However, Annex II also includes next to each item a short description of the relevant item. We have received guidance from the UK, Germany and Netherlands confirming that the description is currently redundant and that the respective authorities currently restrict all products within the 8-digit CN code (as opposed to just those matching both the CN code and the description).
We understand that the Commission appears to recognise this inconsistency and will seek to amend the text. Unless and until this happens, in the UK any goods or related technology within the 8-digit CN code is subject to the prior authorisation requirement.
