The UK has adopted The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2023. See here for an explanatory memorandum accompanying this legislation. The new legislation introduced and expands on current trade sanctions and comes into force today, Friday 21 April 2023.
The sanctions significantly expand the restrictions on import and acquisition of revenue generating goods which originate in, or are consigned from, Russia. In particular:
• the existing list of goods prohibited for import into the UK has been significantly expanded; and
• a new Chapter 4GA and Schedule 3DA has been introduced, which control goods prohibited for supply from Russia, whether to the UK or to a third country. This is similar in scope to the EU import ban.
This means that there are now two lists of “revenue generating goods” restricted for import into the UK (Schedules 3D and 3DA), with some goods additionally restricted for UK persons to be involved in a supply to a third country (those listed in Schedule 3DA). Technical assistance, financial services and funds, and brokering services in respect of a prohibited supply of these goods is also prohibited.
Iron and Steel Products: The sanctions impose a prohibition on the import of iron and steel products where the metal originated in Russia but was processed in a third country (i.e. not the UK, Isle of Man or Russia), and technical assistance, financial and brokering services relating to such products. This does not come into force until Saturday 30 September 2023.
• Exception: The legislation provides for a limited exception to the prohibition where the goods are located in the UK or Isle of Man having been lawfully imported there. This exception applies to the acquisition of the goods themselves, and to technical assistance and financial or brokering services in respect of those goods.
• Schedule 3B of the new regulations provides a comprehensive list of “Iron and steel products” which are now covered.
Revenue Generating Goods: The sanctions impose a prohibition on the import and acquisition of revenue generating goods which originate in, or are consigned from, Russia, as well as the supply and delivery of such goods from Russia to a third country. Technical assistance, financial and brokering services and funding in respect of these goods is also prohibited.
• Exception: The legislation provides for limited exceptions to the prohibition, specifically where the goods are located in the UK or Isle of Man having been lawfully imported there, or where a UK national in Russia engages in any prohibited activity where (i) the relevant goods are located in Russia and (ii) the relevant goods are for personal use in Russia by that UK national or their immediate family members. This exception applies to the acquisition of the goods themselves, and to technical assistance and financial or brokering services in respect of those goods.
• Schedule 3DA of the new regulations provides a comprehensive list of “revenue generating goods” which are now covered.
• Schedule 3D has been updated to include a variety of chemicals, fertilisers and fuels, as well as a comprehensive list of other types of products, including soaps, paper, mechanical appliances and other electrical apparatus.
Oil and Oil Products, Gold, Coal and Coal Products: The legislation removes the prohibition on the direct or indirect supply and delivery of the oil and oil products, gold, coal and coal products from Russia (or a third country in respect of gold) to the UK, as well as technical assistance, financial services, funding and brokering services in respect of the same.
• The prohibition on technical assistance, financial services, funding and brokering services continues to apply to the import of these products if they originate or are consigned from Russia, and to the direct or indirect acquisition of these products with the intention of these products entering the UK if they originate in Russia or are located in Russia (or, in the case of gold only, if it originates in Russia and is located in Russia).
Critical-industry goods and critical-industry technology: The following schedules have been updated to include various products and categories, as summarised below:
• Schedule 2A has been updated to include various products in the following categories.
i. special materials and related equipment, including rare-earth metals and compounds;
ii. materials processing, including continuous flow reactors and their components;
iii. electronics;
iv. computers;
v. marine, including vessels and marine engines;
vi. aerospace and propulsion; and
vii. miscellaneous, including netting, canopies, tents, blankets and apparel specially designed for camouflage.
• Schedule 2E has also been updated to include additional advanced materials goods and technology, specifically machines for additive manufacturing.
• Schedule 3 has been updated to include oil and gas exploration equipment, software and data.
Defence and security goods and defence and security technology: Schedule 3C has been updated to include a variety of irritating chemical substances and mixtures, with an exception for medical products. Ammonia has also been added to the list of restricted chemicals.
G7 Dependency and Further Goods: Schedule 3E has been updated to include iron and steel products, as well as a variety of other types of materials, including fuels, glass, boards and marine propulsion components and fuels. The updated list also includes other types of machinery, robots and related components, as well as radar, radio and other electronic apparatus and components.
Russia’s Vulnerable Goods: Schedule 3I has been updated to include various types of machinery, containers, components and electronics.
