US Sectoral Sanctions
EU Sectoral Sanctions (cont'd)
Important Overarching Provisions
The Reg. also bans knowing and intentional participation in activities having object or effect of
circumventing the above prohibitions (Reg. art. 12)
But, per art. 10, no liability w/o knowledge or reasonable cause to suspect that actions would
violate
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Jurisdictional reach – the Reg. applies (art. 13, and see EU Guidance Note FAQ 8):
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Within EU territory (or on board aircraft / vessels under member state jurisdiction)
To any person, wherever located, who is an EU member state national
To any entity, wherever acting, that is incorporated in an EU member state
To any entity "in respect of any business done in whole or in part within the Union"
Note the distinctions between US/EU regs. overall reach - especially now with CAATSA
And the "no claims ... shall be satisfied" provision but without prejudice to "judicial review of
the legality of the non-performance of contractual obligations in accordance with this
Regulation" (Reg. art. 11) - interesting for lawyers
And note the 13 Sept. 2018 EU General Court decisions upholding the sectoral sanctions
against challenges by Rosneft, Gazpromneft, Sberbank, VTB, VEB and others
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Rejecting challenges brought some years ago by Rosneft, Gazpromneft, Sberbank, VTB, VEB and others
And now the European Court of Justice (ECJ - the EU's top court) has affirmed these
rejections/dismissals in its 25 June 2020 rulings in appeals by VTB and VEB, and 17 Sept. 2020 ruling in
appeal by Rosneft (see links at slide 14)
Morgan Lewis
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