Council Decision 2014/145/CFSP of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine

Member States shall take the necessary measures to prevent the entry into, or transit through, their territories of:

1. natural persons responsible for, supporting or implementing actions or policies which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine, or stability or security in Ukraine, or which obstruct the work of international organisations in Ukraine;

2. natural persons supporting, materially or financially, or benefitting from Russian decision-makers responsible for the annexation of Crimea or the destabilisation of Ukraine;

3. natural persons conducting transactions with the separatist groups in the Donbas region of Ukraine;

4. natural persons supporting, materially or financially, or benefitting from the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilisation of Ukraine; or

5. leading businesspersons operating in Russia and their immediate family members, or other natural persons, benefitting from them, or businesspersons involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilisation of Ukraine; or

6. natural persons:

   1. facilitating infringements of the prohibition against circumvention of the provisions of this Decision, or of Decisions 2014/386/CFSP⁽¹⁾, 2014/512/CFSP⁽²⁾, or (CFSP) 2022/266⁽³⁾, or of Council Regulations (EU) No 269/2014⁽⁴⁾, (EU) No 692/2014⁽⁵⁾, (EU) No 833/2014⁽⁶⁾ or (EU) 2022/263⁽⁷⁾; or

   2. otherwise significantly frustrating those provisions; or

7. natural persons benefitting from the compulsory transfer of ownership or control of entities established in Russia, previously owned or controlled by entities established in the Union, where such transfer is made by the Government of the Russian Federation through laws, regulations, other legislative instruments or other action of a Russian public authority, and natural persons who have been appointed to the governing bodies of such entities in Russia without the consent of the Union entities which previously owned or controlled them;;

8. natural persons that own, control, manage or operate vessels that transport crude oil or petroleum products, originating in Russia or exported from Russia, while practicing irregular and high-risk shipping practices as set out in the International Maritime Organisation General Assembly resolution A.1192(33), or that otherwise provide material, technical or financial support to the operations of such vessels; or

9. natural persons forming part of, supporting, materially or financially, or benefitting from Russia’s military and industrial complex, including by being involved in the development, production or supply of military technology and equipment; or

10. natural persons that have participated in or enabled transfers of ownership, control or economic benefit of the business interests of leading businesspersons who are subject to Union restrictive measures pursuant to the criterion set out in point (e) of this paragraph and listed in the Annex to this Decision, thereby significantly frustrating those measures, with the exception of transfers expressly permitted pursuant to derogations and exemptions laid down in this Decision, Decision 2014/512/CFSP, or Regulation (EU) No 269/2014 or (EU) No 833/2014,

and natural persons associated with them or with the legal persons, entities or bodies listed under Article 2(1)(i), as listed in the Annex.

Paragraph 1 shall not oblige a Member State to refuse its own nationals entry into its territory.

Paragraph 1 shall be without prejudice to the cases where a Member State is bound by an obligation of international law, namely:

1. as a host country to an international intergovernmental organisation;

2. as a host country to an international conference convened by, or under the auspices of the United Nations;

3. under a multilateral agreement conferring privileges and immunities; or

4. under the 1929 Treaty of Conciliation (Lateran pact) concluded by the Holy See (State of the Vatican City) and Italy.

Paragraph 3 shall be considered as also applying in cases where a Member State is host country to the Organisation for Security and Cooperation in Europe (OSCE).

The Council shall be duly informed in all cases where a Member State grants an exemption pursuant to paragraphs 3 or 4.

Member States may grant exemptions from the measures imposed under paragraph 1 where travel is justified on the grounds of urgent humanitarian need, or on grounds of attending intergovernmental meetings, and those promoted or hosted by the Union, or hosted by a Member State holding the Chairmanship in office of the OSCE, where a political dialogue is conducted that directly promotes the policy objectives of the restrictive measures, including support for the territorial integrity, sovereignty and independence of Ukraine.

Member States may grant exemptions from the measures imposed under paragraph 1 where entry into, or transit through, their territories is necessary for the conduct of a judicial process, including surrender and extradition procedures.

A Member State wishing to grant exemptions referred to in paragraph 6 shall notify the Council in writing. The exemption shall be deemed to be granted unless one or more of the Council members raises an objection in writing within two working days of receiving notification of the proposed exemption. Should one or more of the Council members raise an objection, the Council, acting by qualified majority, may decide to grant the proposed exemption.

Where, pursuant to paragraphs 3, 4, 6, 6a and 7, a Member State authorises the entry into, or transit through, its territory of persons listed in the Annex, that authorisation shall be limited to the purpose for which it is given to the person concerned therewith.

All funds and economic resources belonging to, or owned, held or controlled by:

1. natural persons responsible for, supporting or implementing actions or policies which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine, or stability or security in Ukraine, or which obstruct the work of international organisations in Ukraine;

2. legal persons, entities or bodies supporting, materially or financially, actions which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine;

3. legal persons, entities or bodies in Crimea or Sevastopol whose ownership has been transferred contrary to Ukrainian law, or legal persons, entities or bodies which have benefitted from such a transfer;

4. natural or legal persons, entities or bodies supporting, materially or financially, or benefitting from Russian decision-makers responsible for the annexation of Crimea or the destabilisation of Ukraine;

5. natural or legal persons, entities or bodies conducting transactions with the separatist groups in the Donbas region of Ukraine;

6. natural or legal persons, entities or bodies supporting, materially or financially, or benefitting from the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilisation of Ukraine; or

7. leading businesspersons operating in Russia and their immediate family members, or other natural persons, benefitting from them, or businesspersons, legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilisation of Ukraine; or

8. natural or legal persons, entities or bodies:

   1. facilitating infringements of the prohibition against circumvention of the provisions of this Decision, or of Decisions 2014/386/CFSP, 2014/512/CFSP or (CFSP) 2022/266, or of Regulations (EU) No 269/2014, (EU) No 692/2014, (EU) No 833/2014 or (EU) 2022/263; or

   2. otherwise significantly frustrating those provisions; or

9. legal persons, entities or bodies operating in the Russian IT-sector with a license administered by the Federal Security Service of the Russian Federation (FSB) Center for Licensing, Certification, and Protection of State Secrets or a ‘weapons and military equipment’ license administered by the Russian Ministry of Industry and Trade; or

10. entities established in Russia, previously owned or controlled by entities established in the Union, ownership or control of which has been compulsorily transferred by the Government of the Russian Federation through laws, regulations, other legislative instruments or other action of a Russian public authority, or natural or legal persons, entities or bodies that have benefitted from such a transfer, and natural persons who have been appointed to the governing bodies of such entities in Russia without the consent of the Union entities which previously owned or controlled them;

11. natural or legal persons, entities or bodies that own, control, manage or operate vessels that transport crude oil or petroleum products, originating in Russia or exported from Russia, while practicing irregular and high-risk shipping practices as set out in the International Maritime Organisation General Assembly resolution A.1192(33), or that otherwise provide material, technical or financial support to the operations of such vessels; or

12. natural or legal persons, entities or bodies forming part of, supporting, materially or financially, or benefitting from Russia’s military and industrial complex, including by being involved in the development, production or supply of military technology and equipment; or

13. natural or legal persons, entities or bodies that have participated in or enabled transfers of ownership, control or economic benefit of the business interests of leading businesspersons who are subject to Union restrictive measures pursuant to the criterion set out in point (g) of this paragraph and listed in the Annex to this Decision, with the exception of transfers expressly permitted pursuant to derogations and exemptions laid down in this Decision, Decision 2014/512/CFSP, or Regulation (EU) No 269/2014 or (EU) No 833/2014,

and natural or legal persons, entities or bodies associated with them, as listed in the Annex, shall be frozen.

If natural persons listed in the Annex die during the period of application of the restrictive measures, the Council may retain the names of the deceased persons on that list if their delisting would pose a risk of undermining the objectives of Union restrictive measures because of a likelihood that the assets concerned would otherwise be used to finance Russia’s war of aggression against Ukraine or other actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

No funds or economic resources shall be made available, directly or indirectly, to or for the benefit of natural or legal persons, entities or bodies listed in the Annex.

The competent authority of a Member State may authorise the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources, under such conditions as it deems appropriate, after having determined that the funds or economic resources concerned are:

1. necessary to satisfy the basic needs of the persons listed in the Annex and their dependent family members, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;

2. intended exclusively for the payment of reasonable professional fees and the reimbursement of incurred expenses associated with the provision of legal services;

3. intended exclusively for the payment of fees or service charges for the routine holding or maintenance of frozen funds or economic resources;

4. necessary for extraordinary expenses, provided that the competent authority has notified the competent authorities of the other Member States and the Commission of the grounds on which it considers that a specific authorisation should be granted, at least two weeks prior to the authorisation; or

5. to be paid into or from an account belonging to or held by a diplomatic mission, consular post or international organisation enjoying immunities in accordance with international law, insofar as such payments are intended to be used for official purposes of the diplomatic mission, consular post or international organisation.

The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph.

By way of derogation from paragraph 1, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources, provided that the following conditions are met:

1. the funds or economic resources are the subject of an arbitral decision rendered prior to the date on which the person, entity or body referred to in paragraph 1 was listed in the Annex, or of a judicial or administrative decision rendered in the Union, or a judicial decision enforceable in the Member State concerned, prior to or after that date;

2. the funds or economic resources will be used exclusively to satisfy claims secured by such a decision or recognised as valid in such a decision, within the limits set by applicable laws and regulations governing the rights of persons having such claims;

3. the decision is not for the benefit of a natural or legal person, entity or body listed in the Annex; and

4. recognition of the decision is not contrary to public policy in the Member State concerned.

The Member State concerned shall inform the other Member States and the Commission of any authorisations granted under this paragraph.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources, after having determined that a judicial or administrative authority of a Member State has adopted a decision, under the conditions provided by law, to deprive in the public interest a natural or legal person, entity or body listed in the Annex of funds or economic resources belonging to, owned by or controlled by such person, entity or body, provided that compensation paid for such deprivation of funds or economic resources is frozen.

The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the natural or legal persons, entities or bodies listed in the Annex pursuant to Article 2(1), point (j), or the making available of certain funds or economic resources to those natural or legal persons, entities or bodies, under such conditions as they deem appropriate, after having determined that those funds or economic resources are necessary for the sale or use of shares in, or assets of, legal persons, entities or bodies established in Russia listed in the Annex pursuant to Article 2(1), point (j), in order to enable the payment of the consideration agreed by the parties or for the compensation decided by a judicial or administrative authority or established by law in the context of the compulsory transfer of ownership or control by the Government of the Russian Federation. This paragraph shall not apply in relation to frozen funds or economic resources held by Central securities depositories within the meaning of Regulation (EU) No 909/2014 of the European Parliament and of the Council⁽⁸⁾.

The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph.

Paragraph 1 shall not prevent a listed natural or legal person, entity or body from making a payment due under a contract entered into prior to the date on which such natural or legal person, entity or body was listed in the Annex, provided that the Member State concerned has determined that the payment is not, directly or indirectly, received by a natural or legal person, entity or body referred to in paragraph 1.

Paragraph 2 shall not apply to the addition to frozen accounts of:

1. interest or other earnings on those accounts;

2. payments due under contracts, agreements or obligations that were concluded or arose prior to the date on which those accounts became subject to the measures provided for in paragraphs 1 and 2; or

3. payments due under judicial, administrative or arbitral decisions rendered in the Union or enforceable in the Member State concerned,

provided that any such interest, other earnings and payments remain subject to the measures provided for in paragraph 1.

By way of derogation from paragraph 2, the competent authorities of a Member State may authorise payments to the Crimean Sea Ports for services provided at the ports of Kerch Fishery Port, Yalta Commercial Port and Evpatoria Commercial Port, and for services provided by Gosgidrografiya and by Port-Terminal branches of the Crimean Sea Ports. The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph, within two weeks of the authorisation.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the entities listed under entry numbers 53, 54 and 55 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to those entities, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the termination by 24 August 2022 of operations, contracts or other agreements, including correspondent banking relations, concluded with those entities before 23 February 2022.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the entities listed under entry numbers 79, 80, 81 and 82 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to those entities, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the termination by 9 October 2022 of operations, contracts or other agreements, including correspondent banking relations, concluded with those entities before 8 April 2022.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may, under such conditions as they deem appropriate, authorise the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources, to a natural or legal person, entity or body listed in the Annex, after having determined that:

1. the funds or economic resources are necessary for the sale and transfer by 31 May 2023 or within 6 months from the date of designation in the Annex, whichever is latest, of proprietary rights in a legal person, entity or body established in the Union where those proprietary rights are directly or indirectly owned by a natural or legal person, entity or body listed in the Annex; and

2. the proceeds of such sale and transfer remain frozen.

The prohibition set out in paragraph 2 shall not apply to organisations and agencies which are pillar-assessed by the Union and with which the Union has signed a financial framework partnership agreement on the basis of which the organisations and agencies act as humanitarian partners of the Union, provided that the provision of the funds or economic resources referred to in paragraph 2 is necessary for exclusively humanitarian purposes in Ukraine.

In cases not covered by paragraph 11, and by way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may grant specific or general authorisations, under such general or specific conditions as they deem appropriate, to release certain frozen funds or economic resources or to make available certain funds or economic resources, provided that the provision of such funds or economic resources is necessary for exclusively humanitarian purposes in Ukraine.

In the absence of a negative decision, a request for information or a notification for additional time from the competent authority within 5 working days of the date of receipt of a request for authorisation, the authorisation shall be considered granted.

The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph within 2 weeks of the authorisation.

Paragraphs 1 and 2 shall not apply to funds or economic resources that are strictly necessary for the provision of electronic communication services by Union telecommunication operators, for the provision of associated facilities and services necessary for the operation, maintenance and security of such electronic communication services, in Russia, in Ukraine, in the Union, between Russia and the Union, and between Ukraine and the Union, and for data centre services in the Union.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the entity listed under entry number 108 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to that entity, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the termination by 22 August 2023, of operations, contracts, or other agreements, including correspondent banking relations, concluded with that entity before 21 July 2022.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may, under such conditions as they deem appropriate, authorise the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources to the entity listed under entry number 108 under the heading ‘Entities’ in the Annex, after having determined that the funds or economic resources are necessary for the completion, by 17 June 2023, of an ongoing sale and transfer of proprietary rights directly or indirectly owned by that entity in a legal person, entity or body established in the Union. That deadline does not retroactively validate divestments not compliant with the necessary requirements under this Decision.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise, under such conditions as they deem appropriate, the release of certain frozen economic resources, after having determined that:

1. the release of such economic resources is necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment; and

2. the proceeds resulting from the release of such economic resources are frozen.

The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph within two weeks of the authorization.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the entities listed under entry numbers 53, 54, 55, 79, 80, 81, 82, 108, 126, 127, 198, 199, 200, 214, 215 and 270 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to those entities, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the purchase, import or transport of agricultural and food products, including wheat and fertilisers.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State, based on a specific and case-by-case assessment, may authorise, for each relevant transaction separately, the release of certain frozen funds or economic resources belonging to natural persons listed under the heading ‘Persons’ in the Annex who held a significant role in international trade in agricultural and food products, including wheat and fertilisers, prior to their listing, or the making available of certain funds or economic resources to those persons, under such conditions as the competent authorities deem appropriate and after having determined that such funds or resources are necessary for the sale, supply, transfer or export of agricultural and food products, including wheat and fertilisers, to third countries in order to address food security.

The Member State concerned shall, when authorising such operations, act in close cooperation with the Commission. It shall inform the other Member States of any authorisation granted under this paragraph, within two weeks of the authorisation.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the entity listed under entry number 91 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to that entity, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the completion of transactions, including sales, which are strictly necessary for the winding down, by 31 December 2022, of a joint venture or similar legal arrangement concluded before 16 March 2022, involving a legal person, entity or body referred to in Annex X to Decision 2014/512/CFSP. The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph within two weeks of the authorisation.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the entity listed under entry number 101 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to that entity, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the termination by 7 January 2023 of operations, contracts or other agreements concluded with, or otherwise involving, that entity before 3 June 2022. The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph within two weeks of the authorisation.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the entities listed under entry numbers 126 and 127 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to those entities, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the termination by 17 June 2023 of operations, contracts, or other agreements, including correspondent banking relations, concluded with those entities before 16 December 2022. The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph within two weeks of the authorisation.

By way of derogation from paragraphs 1 and 2, the competent authorities of the Member States may authorise the release of certain frozen funds or economic resources belonging to the entities listed under entry numbers 198, 199 and 200 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to those entities, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the termination by 26 August 2023 of operations, contracts, or other agreements, including correspondent banking relations, concluded with those entities before 25 February 2023, or, with respect to the entity listed under entry number 198 under the heading ‘Entities’ in the Annex, for transactions for the disbursement of funds by the Jewish Claims Conference to beneficiaries in the Russian Federation by 31 December 2024, irrespective of when the operations, contracts or other agreements were concluded. The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph within two weeks of granting the authorisation.

By way of derogation from paragraphs 1 and 2, the competent authorities of the Member States may, under such conditions as they deem appropriate, authorise the release of certain frozen funds or economic resources belonging to the entities listed under entry numbers 82 and 101 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to those entities, after having determined that:

1. such funds or economic resources are necessary for the disposal or the transfer of securities by an entity established in the Union, currently or previously controlled by the entity listed under entry number 82 under the heading ‘Entities’ in the Annex;

2. such disposal or transfer is completed by 31 December 2023; and

3. such disposal or transfer is carried out on the basis of operations, contracts or other agreements concluded with, or otherwise involving, the entities listed under entry numbers 82 and 101 under the heading ‘Entities’ in the Annex, before 3 June 2022.

By way of derogation from paragraphs 1 and 2, the competent authorities of the Member States may, under such conditions as they deem appropriate, authorise the release of certain frozen funds or economic resources belonging to the entity listed under entry number 190 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to that entity, after having determined that such funds or economic resources are necessary for the termination by 26 August 2023 of operations, contracts or other agreements concluded with, or otherwise involving, that entity before 25 February 2023.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the natural person listed under entry number 695 under the heading ‘Persons’ in the Annex, or the making available of certain funds or economic resources to this natural person or an entity owned by this natural person, under such conditions as the competent authorities deem appropriate and after having determined that such funds or economic resources are necessary for the completion of transactions, including sales, which are strictly necessary for the wind-down, by 31 August 2023, of a joint venture or similar legal arrangement established in Russia with this natural person or an entity owned by this natural person before 28 February 2022.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the conversion by 24 December 2023 by nationals or residents of a Member State, or an entity established in the Union, of a depositary receipt with Russian underlying security held with the entity listed under entry number 101 under the heading ‘Entities’ in the Annex for the purpose of selling the underlying security and the making available of funds linked to the conversion of the depositary receipt and to the sale of the underlying security directly or indirectly to that entity in Russia, under such conditions as the competent authorities deem appropriate and after having determined that:

1. the depositary receipt was issued before 3 June 2022;

2. the relevant request for authorisation is submitted by 24 September 2023;

3. the holder of the depositary receipt is able to demonstrate that such conversion is necessary for the sale of the underlying security;

4. the sale of the underlying security is compliant with the prohibition under Decision 2014/512/CFSP, including Articles 1 and 1d thereof;

5. no funds will be made available to any other entity listed in the Annex.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to, owned, held or controlled by a natural or legal person, entity or body listed in the Annex, or the provision of services to such a natural or legal person, entity or body, under such conditions as they deem appropriate and after having determined that this is strictly necessary for the setting-up, certification or evaluation of a firewall which:

1. removes the control by the natural or legal person, entity or body listed in the Annex over the assets of a non-listed legal person, entity or body incorporated or constituted under the law of a Member State and which is owned or controlled by the former, and

2. ensures that no further funds or economic resources accrue for the benefit of the listed natural or legal person, entity or body.

Paragraphs 1 and 2 shall not apply to funds or economic resources that are needed for the provision of pilot services which are necessary for reasons of maritime safety.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to the entity listed under entry number 270 under the heading ‘Entities’ in the Annex, under such conditions as the competent authorities deem appropriate and after having determined that:

1. such authorisation is necessary to allow a payment due by the entity listed under entry number 270 under the heading ‘Entities’ in the Annex to be made to an entity established in the Union, in a country member of the European Economic Area, in Switzerland or in a partner country as listed in Annex VII to Decision 2014/512/CFSP, or to a national or resident of a Member State, of a country member of the European Economic Area, of Switzerland or of a partner country as listed in Annex VII to Decision 2014/512/CFSP; and

2. such payment constitutes the indemnity or benefit provided further to the materialisation of a risk and is not in breach of Article 2(2) of this Decision.

By way of derogation from paragraphs 1 and 2 of this Article, the competent authorities of a Member State may, under such conditions as they deem appropriate, authorise the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources to the individuals listed under entry numbers 92, 694, 719, 721, 881 and 920 under the heading ‘Persons’ in the Annex, after having determined that:

1. the funds or economic resources are necessary for the sale and transfer by 30 June 2025 of proprietary rights directly or indirectly owned by one of those individuals in a legal person, entity or body established in the Union; and

2. the proceeds of such sale and transfer are frozen.

By way of derogation from paragraphs 1 and 2, the competent authorities of a Member State may, under such conditions as they deem appropriate, authorise the release of certain frozen funds or economic resources belonging to the entity listed under entry number 333 under the heading ‘Entities’ in the Annex, or the making available of certain funds or economic resources to that entity, after having determined that such funds or economic resources are necessary for the termination by 19 June 2024 of contracts concluded with that entity before 18 December 2023.

By way of derogation from paragraphs 1 and 2 of this Article, and provided that the funds concerned were frozen as a result of the involvement of a legal person, entity or body listed in the Annex to this Decision, or of a legal person owned or controlled by a legal person, entity or body listed in that Annex, acting as intermediary bank during a transfer of those funds to the Union from the Russian Federation, from a third country or from the Union, the competent authorities of a Member State may, under such conditions as they deem appropriate, authorise the release of certain frozen funds, after having determined that the transfer of such funds is:

1. between two natural or legal persons, entities or bodies that are not listed in the Annex to this Decision;

2. carried out using accounts at credit institutions that are not listed in the Annex to this Decision; and

3. not in breach of paragraph 2 of this Article.

This paragraph shall not apply in relation to frozen funds or economic resources held by Central securities depositories within the meaning of Regulation (EU) No 909/2014.

By way of derogation from paragraphs 1 and 2 of this Article, and provided that the payment concerned was frozen as a result of a transfer to the Union from the Russian Federation, from a third country or from the Union, initiated through or from a legal person, entity or body listed in the Annex to this Decision, or through or from a legal person owned or controlled by a legal person, entity or body listed in that Annex, the competent authorities of a Member State may, under such conditions as they deem appropriate, authorise the release of that frozen payment, after having determined that the transfer of that payment is:

1. between two natural or legal persons, entities or bodies that are not listed in the Annex to this Decision;

2. not in breach of paragraph 2 of this Article.

This paragraph shall not apply in relation to frozen funds or economic resources held by Central securities depositories within the meaning of Regulation (EU) No 909/2014.

The beneficiaries of a transfer as referred to in the first subparagraph of this paragraph shall only be nationals of a Member State, of a country member of the European Economic Area or of Switzerland, or natural persons having a temporary or permanent residence permit in a Member State, in a country member of the European Economic Area or in Switzerland.

One authorisation per applicant may be granted under this paragraph.

The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph within one week of the authorisation.

By way of derogation from paragraphs 1 and 2 of this Article, the competent authorities of a Member State may, under such conditions as they deem appropriate, authorise the release of cash balances frozen by a central securities depository within the meaning of Regulation (EU) No 909/2014 and attributable to the entity listed under entry number 101 under the heading ‘Entities’ in the Annex to this Decision or to another entity listed under that heading, after having determined that:

1. the central securities depository concerned maintains an account or accounts with the entity listed under entry number 101 under the heading ‘Entities’ in the Annex to this Decision;

2. the entity listed under entry number 101 under the heading ‘Entities’ in the Annex to this Decision or another entity listed under that heading maintains an account or accounts with the central securities depository holding the cash balance to be released;

3. the entity listed under entry number 101 under the heading ‘Entities’ in the Annex to this Decision has debited an amount from the account or the accounts referred to in point (a) of this paragraph, pursuant to a law, decree, regulation, judicial or administrative decision or any other measure, directly or indirectly attributable to the Russian Federation, without the prior consent of the central securities depository concerned;

4. the released cash balance is to be used by the central securities depository concerned to meet its legal obligations towards its participants and does not exceed the debited amount referred to in point (c) of this paragraph; and

5. the released cash balance is not made available in breach of paragraph 2 of this Article.

By way of derogation from paragraph 2, the competent authorities of a Member State may authorise, under such conditions as they deem appropriate, payments to the entity listed under entry number 265 under heading ‘B. Entities’ in the Annex, for goods and services that can only be provided by that entity and that are necessary for the operation, maintenance or repair of Budapest metro line 3 cars delivered by Metrowagonmash in 2018. The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under this paragraph, within two weeks of the authorisation.

The Council, acting by unanimity upon a proposal by a Member State or the High Representative of the Union for Foreign Affairs and Security Policy, shall decide to establish and amend the list in the Annex.

The Council shall communicate the decision referred to in paragraph 1, including the grounds for the listing, to the natural or legal person, entity or body concerned, either directly, if the address is known, or through the publication of a notice, providing such person, entity or body with an opportunity to present observations.

Where observations are submitted, or where substantial new evidence is presented, the Council shall review the decision referred to in paragraph 1 and inform the person, entity or body concerned accordingly.