News Legislation Sanctions
Translated by machine translator

On 8 April 2022, the European Commission adopted Council Regulation (EU) 2022/576 amending Regulation (EU) No. 833/2014 concerning restrictive measures in relation to Russian activities destabilising the situation in Ukraine, which entered into force on 9 April 2022.

It is recalled that the regulations adopted by the European Commission are directly applicable in the Member States of the European Union from its entry into force.

In accordance with Article 5 k (1) of that Regulation, contracting entities, public service providers and public partners are prohibited from awarding or continuing to perform any public or concession contracts where the procurement contract is subject to the Public Procurement Law, the Public Service Providers Procurement Law, the Public Private Partnership Law and the Defence and Security Procurement Law, as well as the exceptions specified in these laws, and if the contract is entered into with:

a) a Russian national, or a natural or legal person, entity or body established in Russia;

b) a legal person, entity or body whose proprietary rights are directly or indirectly owned for more than 50 % by an entity referred to in point (a) of this paragraph; or

c) a natural or legal person, entity or body acting on behalf or at the direction of an entity referred to in point (a) or (b) of this paragraph,

including, where they account for more than 10 % of the contract value, subcontractors, suppliers or entities whose capacities are being relied on within the meaning of the public procurement Directives.

The prohibitions shall not apply to the performance of contracts until 10 October 2022 if they were concluded before 9 April 2022.

at the same time, draws attention to the fact that Article 5 k (2) of the Regulation also provides for exceptions which are not subject to sanctions.