ThePresident has signed theExecutive Order OntheApplication ofSpecial Economic Measures intheFinancial, andFuel andEnergy Sectors inConnection with theUnfriendly Actions bySome Foreign States andInternational Organisations, according to the official website of the Kremlin.
TheExecutive Order was signed inconnection with theactions regarded asunfriendly andbreaching international law bytheUnited States andtheforeign states andinternational organisations siding with it that are imposing restrictive measures against Russian citizens andRussian legal entities, inorder toprotect thenational interests oftheRussian Federation andinaccordance with Federal Laws No.281-FZ “OnSpecial Economic Measures andCoercive Measures” ofDecember30, 2006, No 390-FZ “OnSecurity” ofDecember28, 2010, andNo.127-FZ “OnMeasures toInfluence (Oppose) Unfriendly Acts bytheUnited States ofAmerica andother foreign States” ofJune4, 2018.
Under theExecutive Order transactions (operations) resulting directly and(or) indirectly intheestablishment, change, termination orencumbrance ofrights toown, use and(or) dispose ofsecurities owned byRussian legal entities, shares (contributions) constituting thecharter (joint) capital ofRussian legal entities, participation interests, rights andobligations belonging toparties toproduction sharing agreements, joint activity agreements orother agreements under which investment projects are implemented inRussia, are prohibited untilDecember31, 2022.
In particular, this prohibition shall apply totransactions involving shares, rights andobligations belonging totheparties totheProduction Sharing Agreement fortheSakhalin-1 Project (Chayvo, Odoptu, andArkutun-Dagi oil andgas condensate fields ontheSakhalin Island shelf) andtheAgreement onKharyaga Oil Field Development andProduction onaProduction Sharing Basis.
The ban appies to shares andinterest (contributions) making up thecharter capital ofsuch business entities asusers of subsurface allotments located intheterritory oftheRussian Federation andcontaining deposits ofhydrocarbon raw materials (with recoverable reserves ofatleast 20 million tonnes ofoil oratleast 20 billion cubic metres ofnatural gas oratleast 35 million tonnes ofcoal), uranium, high-purity quartz, rare-earth yttrium group metals, nickel, cobalt, tantalum, niobium, beryllium andcopper; involving subsurface allotments located ontheterritory oftheRussian Federation that are primary deposits ofdiamonds, gold, lithium andplatinum group metals; involving subsurface allotments ofinland sea waters, territorial seas, andthecontinental shelf ofRussia.
Theban applies provided that thesecurities, shares (contributions), rights andobligations belong toforeign persons associated with theforeign states that commit unfriendly acts inrelation totheRussian Federation, Russian legal entities andindividuals (including if such foreign persons have citizenship inthese states, theplace oftheir registration, theplace oftheir primary business activity ortheplace oftheir primary source ofprofit that is derived from their activity inthose states), andpersons who are under thecontrol ofsuch foreign persons.
Thedocument lists legal relations which are not covered bytheban established under this Executive Order.
It stipulates, inparticular, that transactions (operations) carried out inviolation ofthis Executive Order shall be null andvoid.
It also stipulates that thetransactions (operations) prohibited under this Executive Order may be carried out under special decision ofthePresident ofRussia.
ThePresident ofRussia may extend thevalidity oftheestablished restrictions contained inthis Executive Order asneeded.
Therelevant instructions have been given totheGovernment oftheRussian Federation.
ThePresident has signed theExecutive Order OntheApplication ofSpecial Economic Measures intheFinancial, andFuel andEnergy Sectors inConnection with theUnfriendly Actions bySome Foreign States andInternational Organisations, according to the official website of the Kremlin.
TheExecutive Order was signed inconnection with theactions regarded asunfriendly andbreaching international law bytheUnited States andtheforeign states andinternational organisations siding with it that are imposing restrictive measures against Russian citizens andRussian legal entities, inorder toprotect thenational interests oftheRussian Federation andinaccordance with Federal Laws No.281-FZ “OnSpecial Economic Measures andCoercive Measures” ofDecember30, 2006, No 390-FZ “OnSecurity” ofDecember28, 2010, andNo.127-FZ “OnMeasures toInfluence (Oppose) Unfriendly Acts bytheUnited States ofAmerica andother foreign States” ofJune4, 2018.
Under theExecutive Order transactions (operations) resulting directly and(or) indirectly intheestablishment, change, termination orencumbrance ofrights toown, use and(or) dispose ofsecurities owned byRussian legal entities, shares (contributions) constituting thecharter (joint) capital ofRussian legal entities, participation interests, rights andobligations belonging toparties toproduction sharing agreements, joint activity agreements orother agreements under which investment projects are implemented inRussia, are prohibited untilDecember31, 2022.
In particular, this prohibition shall apply totransactions involving shares, rights andobligations belonging totheparties totheProduction Sharing Agreement fortheSakhalin-1 Project (Chayvo, Odoptu, andArkutun-Dagi oil andgas condensate fields ontheSakhalin Island shelf) andtheAgreement onKharyaga Oil Field Development andProduction onaProduction Sharing Basis.
The ban appies to shares andinterest (contributions) making up thecharter capital ofsuch business entities asusers of subsurface allotments located intheterritory oftheRussian Federation andcontaining deposits ofhydrocarbon raw materials (with recoverable reserves ofatleast 20 million tonnes ofoil oratleast 20 billion cubic metres ofnatural gas oratleast 35 million tonnes ofcoal), uranium, high-purity quartz, rare-earth yttrium group metals, nickel, cobalt, tantalum, niobium, beryllium andcopper; involving subsurface allotments located ontheterritory oftheRussian Federation that are primary deposits ofdiamonds, gold, lithium andplatinum group metals; involving subsurface allotments ofinland sea waters, territorial seas, andthecontinental shelf ofRussia.
Theban applies provided that thesecurities, shares (contributions), rights andobligations belong toforeign persons associated with theforeign states that commit unfriendly acts inrelation totheRussian Federation, Russian legal entities andindividuals (including if such foreign persons have citizenship inthese states, theplace oftheir registration, theplace oftheir primary business activity ortheplace oftheir primary source ofprofit that is derived from their activity inthose states), andpersons who are under thecontrol ofsuch foreign persons.
Thedocument lists legal relations which are not covered bytheban established under this Executive Order.
It stipulates, inparticular, that transactions (operations) carried out inviolation ofthis Executive Order shall be null andvoid.
It also stipulates that thetransactions (operations) prohibited under this Executive Order may be carried out under special decision ofthePresident ofRussia.
ThePresident ofRussia may extend thevalidity oftheestablished restrictions contained inthis Executive Order asneeded.
Therelevant instructions have been given totheGovernment oftheRussian Federation.
