40 Ukraine and Russia: EU restrictive
measures
| Committee's assessment
| Politically important |
| Committee's decision | Cleared from scrutiny
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| Document details | Restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (36235), (36236), (36241), (36242)
|
| Legal base | Article 29 TEU; unanimity and Article 215 TFEU; QMV
|
| Department | Foreign and Commonwealth Office
|
Summary and Committee's conclusions
40.1 These instruments enact the sixth and seventh
"rounds" of EU restrictive measures in response to the
Ukraine-Russia crisis, in response to further adverse developments
in eastern Ukraine.
40.2 The first two, enacted on 11 July, designate
an additional 11 individuals under the for actions that "undermine
or threaten the territorial integrity, sovereignty and independence
of Ukraine", thereby bringing the number of individuals subject
to sanctions in connection with Ukraine's territorial integrity
to 72. Two confiscated entities in Crimea and Sevastopol also
remain subject to an asset freeze under these sanctions.
40.3 The Minister for Europe (Mr David Lidington)
notes these listings flow from the European Council Conclusions
of 27 June 2014 which stated that the Council would continue to
"assess the situation" and "adopt necessary decisions"
as required.[164]
40.4 On 18 July, the EU then agreed to expand the
listing criteria, thus broadening the category of individuals
and entities that can be listed under these restrictive measures.
The Minister explains that:
— the previous listing criteria were:
"…natural persons responsible for,
actively 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,
and natural or legal persons, entities or bodies associated with
them, or 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 benefited from
such a transfer…"; and
— the new listing criteria are:
"natural persons responsible for, actively
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, and natural
or legal persons, entities or bodies associated with them;
"legal persons, entities or bodies supporting,
materially or financially, actions which undermine or threaten
the territorial integrity, sovereignty and independence of Ukraine;
or
"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."
40.5 The Minister also notes that these changes to
the listing criteria were agreed in line with the 16 June 2014
European Council Conclusions, which instructed the EU to "expand
the restrictive measures, with a view to targeting entities, including
from the Russian Federation, that are materially or financially
supporting actions undermining or threatening Ukraine's sovereignty,
territorial integrity and independence".[165]
40.6 The European Council also tasked the Council
with deciding by the end of July on a first list of entities and
persons, including from the Russian Federation, to be listed under
the enhanced criteria. At the time of writing (28 July), the Minister
says that, though no additional designations under these criteria
had been agreed, he anticipated further additions to Ukraine restrictive
measures being agreed "over the coming weeks and months".
40.7 Since these measures were enacted, there has,
of course, been the downing of Malaysian Airlines Flight MH17
in Donetsk and the tragic loss of 298 lives. On 22 July, the Foreign
Affairs Council:
— called on the separatist groups in the
area to ensure full, immediate, safe and secure access to the
site in order to proceed with victim identification as well as
to recover remains of those deceased;
— supported the call for a full, transparent
and independent international investigation in accordance with
the international civil aviation guidelines;
— urged Russia to actively use its influence
over the illegally armed groups;
— agreed to accelerate the preparation
of the sanctions agreed at the European Council of 16 July;
— also agreed to expand restrictive measures
with a view to targeting individuals supporting or benefitting
from Russian decision-makers responsible for the destabilisation
of Eastern Ukraine;
— requested the Commission and the European
External Action Service to finalise preparatory work on possible
targeted measures and to present proposals for action, including
on access to capital markets, defence, dual use goods and sensitive
technologies, including in the energy sector.[166]
40.8 Also, on 25 July, the Council announced that
it had adopted (by written procedure) reinforced EU sanctions
in view of the situation in Ukraine, following up on the request
by the European Council of 16 July and the Foreign Affairs Council
of 22 July, and thereby giving legal value to an agreement reached
at the Committee of Permanent Representatives on 24 July. The
Council said that it had thus added 15 further persons and 18
entities responsible for action against Ukraine's territorial
integrity to the list of those subject to an asset freeze and
a visa ban; which brought the number of persons under EU sanctions
in connection with the situation in Ukraine to 87, while the number
of entities will rise to 20. The Council also announced that it
had also widened the designation criteria in the legal basis for
the restrictive measures, which it said "paves the way for
imposing asset freezes and visa bans on persons and entities that
actively support or are benefiting from Russian decision makers
responsible for the annexation of Crimea or the destabilisation
of Eastern Ukraine". [167]
We deal with these further matters elsewhere in this Report.
40.9 In the meantime, we now clear these Council
Decisions, the Council Regulation and the Council Implementing
Regulation.
40.10 In the circumstances outlined by him, we
do not object to the Minister having over-ridden scrutiny on these
occasions.
Full details of the documents:
Council Decision 2014/455/CFSP of 11 July 2014 amending Decision
2014/145/CFSP concerning restrictive measures in respect of actions
undermining or threatening the territorial integrity, sovereignty
and independence of Ukraine: (36235) —; Council Implementing
Regulation (EU) No. 753/2014 of 11 July 2014 implementing Regulation
(EU) No. 269/2014 concerning restrictive measures in respect of
actions undermining or threatening the territorial integrity,
sovereignty and independence of Ukraine: (36236) —; Council
Decision 2014/475/CFSP of 18 July 2014 amending Decision 2014/145/CFSP
concerning restrictive measures in respect of actions undermining
or threatening the territorial integrity, sovereignty and independence
of Ukraine: (36241) —; Council Regulation (EU) No. 783/2014
of 18 July 2014 amending Regulation (EU) No. 269/2014 concerning
restrictive measures in respect of actions undermining or threatening
the territorial integrity, sovereignty and independence of Ukraine:
(36242) —.
Background
40.11 On 5 March 2014, the EU adopted sanctions focused
on the freezing and recovery of misappropriated Ukrainian state
funds, targeting 18 persons identified as responsible for such
misappropriation and freezing their assets within the European
Union.
40.12 In the absence of de-escalatory steps by the
Russian Federation, on 17 March the EU adopted the first set of
restrictive measures against persons responsible for actions which
undermine or threaten the territorial integrity, sovereignty and
independence of Ukraine as well as persons and entities associated
with them. 21 persons were identified and targeted with a travel
ban and a freeze of their assets within the EU.
40.13 On 21 March, the EU strengthened its sanctions
in this regard with additional measures against a further 12 individuals.
The EU also strongly condemned the holding of an illegal "referendum"
in Crimea on joining the Russian Federation, and declared that
it did not recognise the "referendum" or its outcome.
40.14 Following the 14 April Foreign Affairs Council,
the EU called on Russia to repudiate lawless acts in eastern Ukraine
and pull back its troops from the Ukrainian border, and decided
to expand the list of those subject to assets freeze and visa
bans. EU High Representative/Vice President (HR VP) Baroness Ashton
underlined that free and fair Presidential elections on 25 May,
and the process of constitutional reform, were the best way to
express the will of the citizens, and that the EU would continue
to support the efforts to stabilise the situation in Ukraine economically,
financially and politically. She added that the EU would also
continue diplomatic engagement to try to deescalate the crisis
and stabilise the situation, and that it was crucial that Russia
and Ukraine engaged in a meaningful dialogue to find a political
solution.[168]
40.15 HR/VP Ashton participated in a meeting between
the European Union, the United States, Ukraine and Russia in Geneva
on 17 April to discuss the crisis in Ukraine. In a joint statement
issued following the meeting, it was agreed, inter alia,
that all sides must refrain from violence, intimidation or provocative
actions; that all illegal armed groups must be disarmed and illegally
occupied buildings and public places vacated with amnesty granted
to those who did so; that the OSCE Special Monitoring Mission
should play a leading role in implementation of these de-escalatory
measures and that the constitutional process announced by the
Ukrainian authorities would be inclusive, transparent and accountable.
40.16 G7 leaders on 26 April welcomed the positive
steps taken by Ukraine to meet its commitments under the Geneva
accord, including work towards constitutional reform and decentralisation,
the proposal of an amnesty law for those leaving seized buildings
and supporting the work of the OSCE, noting the restraint used
in dealing with armed bands illegally occupying government buildings
and forming illegal checkpoints. In contrast, Russia's lack of
concrete actions in support of the Geneva accord was noted along
with continued escalation of tensions through rhetoric and ongoing
military manoeuvres on the Ukraine's border.[169]
40.17 In line with the G7 statement and as
agreed at the 14 April Foreign Affairs Council, on 28 April the
EU expanded the list of persons subject to targeted sanctions
for actions undermining Ukraine's territorial integrity sovereignty
and independence, with travel bans and asset freezes on a further
15 individuals.[170]
40.18 At the 12 May Foreign Affairs Council, EU Foreign
Ministers agreed to list an additional 13 individuals under Ukraine
restrictive measures, as well as two entities. The designation
criteria were also expanded.[171]
The Minister for Europe noted that in line with the Council Conclusions,
the previous designation criteria were expanded to read thus (additional
language in bold):
"(1) In view of the gravity of the situation
in Ukraine, the restrictions on admission and the freezing of
funds and economic resources should apply to natural persons responsible
for, actively 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,
and natural or legal persons, entities or bodies associated with
them, or 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 benefited from
such a transfer. The beneficiaries of the transfer of ownership
are to be understood as legal persons, entities or bodies that
have become the owners of assets transferred contrary to Ukrainian
law following the annexation of Crimea and Sevastopol."
40.19 This expansion of the (the Minister said)
meant that the EU could now list several new categories of individuals
and entities, namely:
"Individuals that support certain actions/policies
(as detailed above);
"Entities in Crimea or Sevastopol that have
been unlawfully expropriated; and
"Legal persons, entities or bodies that
benefit from such expropriation."
40.20 The Minister also explained that the EU Regulation
contained statements of reasons for each individual, explaining
why they had been listed; all thirteen individuals were listed
for "actively supporting or implementing, actions or policies
which undermine or threaten the territorial integrity, sovereignty
and independence of Ukraine". The first three individuals
were different to the majority of the individuals on the list:
two were Russian government officials whilst the third was Commander
of the Russian Airborne Troops; the other ten individuals on the
list were based in Crimea/Eastern Ukraine; the UK had chosen to
support the EU Council's decision to list this group of individuals
as it was felt it represented a balanced response to the ongoing
crisis, targeting both Russian decision-makers and individuals
responsible for ongoing unrest. Additionally, the two listed entities
were energy companies that had been expropriated since the illegal
annexation of Crimea; the UK chose to support this decision because
Russia had taken no practical steps towards deescalating the crisis.
40.21 Apparently picking up on points made in our
Report of 2 April concerning an exchange between the Prime Minister
and the Leader of the Opposition on 26 March, following the 20-21
March European Council, the Minister also commented on the differences
between the EU's measures and those taken by the US.[172]
The Minister's Explanatory Memoranda of 29 July
2014
40.22 The Minister's first Explanatory Memorandum
of 29 July[173] includes
the full list of the individuals designated, including the reason
for this designation, as follows:
"Aleksandr Yurevich BORODAI — So
called 'Prime Minister of People's Republic of Donetsk'. Responsible
for the separatist 'governmental' activities of the so called
'government of the Donetsk' People's Republic (e.g. on 8 July
stated 'our military is conducting a special operation against
the Ukrainian "fascists"'). Signatory of the Memorandum
of Understanding on 'Novorossiya union'.
"Alexander KHODAKOVSKY —
So called 'Minister of Security of People's Republic of Donetsk'.
Responsible for the separatist security activities of the so called
'government of the Donetsk'.
"Alexandr Aleksandrovich KALYUSSKY —
So called 'de facto Deputy Prime Minister
for Social Affairs of DPR'. Responsible for the separatist 'governmental'
activities of the so called 'government of the Donetsk People's
Republic'.
"Alexander KHRYAKOV — So
called 'Information and Mass Communications Minister of DPR'.
Responsible for the pro-separatist propaganda activities of the
so called 'government of the Donetsk People's Republic'.
"Marat BASHIROV —
So called 'Prime Minister of the Council of Ministers of the People's
Republic of Luhansk, confirmed on 8 Jul'. Responsible for the
separatist 'governmental' activities of the so called 'government
of the People's Republic of Luhansk'.
"Vasyl NIKITIN —
So called 'Vice Prime Minister of the Council of Ministers of
the People's Republic of Luhansk', (used to be the so called 'Prime
Minister of the People's Republic of Luhansk', and former spokesman
of the 'Army of the Southeast'). Responsible for the separatist
'governmental' activities of the so called 'government of the
People's Republic of Luhansk'. Responsible for the statement of
the Army of the Southeast that the Ukrainian presidential elections
in the People's Republic of Luhansk' cannot take place due to
the 'new' status of the region.
"Aleksey KARYAKIN
— So called 'Supreme Council Chair of the People's Republic
of Luhansk'. Responsible for the separatist 'governmental' activities
of the 'Supreme Council', responsible for asking the Russian Federation
to recognize the independence of 'People's Republic of Luhansk'.
Signatory of the Memorandum of Understanding on the 'Novorossiya
union'.
"Yurij IVAKIN —
So called 'Minister of Internal Affairs of the People's Republic
of Luhansk'. Responsible for the separatist 'governmental' activities
of the so called 'government of the People's Republic of Luhansk'.
"Igor PLOTNITSKY —
So called 'Defence Minister of the People's Republic of Luhansk'.
Responsible for the separatist 'governmental' activities of the
so called 'government of the People's Republic of Luhansk'.
"Nikolay KOZITSYN
— Commander of Cossack forces. Responsible for commanding
separatists in Eastern Ukraine fighting against the Ukrainian
government forces.
"Oleksiy MOZGOVY
— One of the leaders of armed groups in Eastern Ukraine.
Responsible for training separatists to fight against the Ukrainian
government forces."
40.23 In an earlier letter of 18 July, the Minister
noted that each person has two months in which to challenge his
listing in the European Court, and may apply to the EU Council
for exceptions to the asset freeze (licences) and for reconsideration
of the decision to include them.
40.24 The Minister also expresses his regret that
"due to the fast-moving pace of events on the ground in Ukraine
and the need to agree further sanctions at short notice",
he found himself having to agree to the adoption of these Council
Decisions and Regulations before the Committee had an opportunity
to scrutinise the documents.
Previous Committee Report(s)
None, but see (36028) —, (36029) — and
(36030) —: First Report HC 219-i (2014-15), chapter 28 (4
June 2014); also see (35905) — and (35906) — : Forty-seventh
Report HC 83-xlii (2013-14), chapter 23 (30 April 2014) and Forty-fifth
Report HC 83-xl (2013-14), chapter 5 (2 April 2014); also see
(35880) — and (35881) —: Forty-fourth Report HC 83-xxxix
(2013-14), chapter 3 (26 March 2014) and (35848) — and (35849)
—: Fortieth Report HC 83-xxxvii (2013-14), chapter 1 (12
March 2014).
164 The Council Conclusions are available at http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ec/143478.pdf. Back
165
The Council Conclusions are available at http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/143992.pdf
Back
166
The Council Conclusions are available at http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/144090.pdf. Back
167
See http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/EN/foraff/144144.pdf
for the text of the statement. Back
168
See http://eeas.europa.eu/statements/docs/2014/140414_02_en.pdf. Back
169
See https://www.gov.uk/government/news/g7-leaders-statement-on-ukraine-april-2014.
Back
170
For full information on EU-Ukraine relations, see the EEAS 16
July 2014 Fact Sheet at http://www.eeas.europa.eu/statements/docs/2014/140514_02_en.pdf.
Back
171
See http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/142563.pdf,
pp 6-10 for the full Council Conclusions. Back
172
For the full background, see (36028), -, (36029), - and (36030),
-: First Report HC 219-i (2014-15), chapter 28 (4 June 2014) Back
173
The Minister's other Explanatory Memorandum of 29 July deals with
the Council Decision and Council Regulation of 18 July concerning
the further amendments to the EU "listing" criteria:
see the Summary section of this chapter of our Report for details. Back
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