EU introduces sanctions against key sectors of Belarus’ economy

<p> MINSK, Jun 24 - PrimePress. The Council of the European Union (EU) on 24 June 2021 introduced sanctions against largest sectors of Belarus’ economy. The full text of the resolution has been published in the Official Journal of the European Union. </p> <p>   </p> <p> The EU Council says the additional targeted economic measures against Belarus have been adopted in response to the forced landing of a Ryanair flight in Minsk, Belarus, on 23 May 2021 endangering aviation safety, and the detention by Belarusian authorities of journalist Roman Protasevich and Sofia Sapega. The resolution says that additional targeted economic measures have been adopted in view of the gravity of that incident, and given the escalation of serious human rights violations in Belarus, and the violent repression of civil society, democratic opposition and journalists as well as of persons belonging to national minorities. </p> <p>   </p> <p> Ban on transfer of technologies </p> <p>   </p> <p> The EU Council suggests prohibiting the sale, supply, transfer or export of equipment, technology or software intended primarily for use in the monitoring or interception by, or on behalf of, the Belarusian authorities of the internet and of telephone communications on mobile or fixed networks. Furthermore, the sale, supply or transfer of dual-use items for military use and to specified persons, entities or bodies in Belarus should be prohibited. </p> <p>   </p> <p> The prohibitions shall not apply to exports, sale, supplies or transfers of dual-use goods and technology, or the related provision of technical or financial assistance, for the maintenance and safety of existing civil nuclear capabilities, for non-military use or for a non-military end user. </p> <p>   </p> <p> Tobacco industry, oil products, potash </p> <p>   </p> <p> The EU Council has ruled to ban the direct or indirect sale, supply, transfer or export to any natural or legal person, entity or body in Belarus or for use in Belarus of goods used for the production or manufacturing of tobacco products. </p> <p>   </p> <p> The EU resolution also bans the purchase, import or transfer from Belarus of petroleum products. </p> <p>   </p> <p> Finance </p> <p>   </p> <p> The EU Council says it shall be prohibited to directly or indirectly purchase, sell, provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. The ban targets bonds issued by Belarus, Belarus’ Government, its public bodies, corporations or agencies. </p> <p>   </p> <p> The ban also affects bonds issued by major credit or other institutions established in Belarus with over 50 % public ownership or control as of 29 June 2021 (Belarusbank, Belinvestbank, Belagroprombank). The sanctions shall target a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50 % by the above-listed entities; any legal person, entity or body acting on behalf or at the direction of the above-listed entities. </p> <p>   </p> <p> The entities listed in Annexes to the EU Council’s resolution shall be prohibited to directly or indirectly make or be part of any arrangement to make new loans or credit with a maturity exceeding 90 days, after 29 June 2021. </p> <p>   </p> <p> The prohibitions shall not apply to loans or credits that have a specific and documented objective to provide financing for non-prohibited imports or exports of goods and non-financial services between the Union and any third State, including the expenditure for goods and services from another third State that is necessary for executing the export or import contracts. </p> <p>   </p> <p> The resolution says that the competent authority of an EU Member State may also grant, under such terms as it deems appropriate, an authorisation to make or be part of the loans or credits referred to in paragraph 1 if the competent authority has determined that: </p> <p> (a)        the activities concerned are for the purpose of providing support for the Belarusian civilian population, such as humanitarian assistance, environmental projects, and nuclear safety or the loan or credit is necessary to comply with legal or regulatory minimum reserve or similar requirements to meet solvency and liquidity criteria for financial entities in Belarus which are majority-owned by financial institutions of the Union; and </p> <p> (b)        the activities or the loan or credit concerned do not entail funds or economic resources being made available, directly or indirectly, to or for the benefit of a person, entity or body. </p> <p>   </p> <p> It shall be prohibited to provide insurance or re-insurance to: </p> <p> (a)        the Belarusian Government, its public bodies, corporations or agencies; </p> <p> (b)        any natural or legal person, entity or body acting on behalf or at the direction of a legal person, entity or body referred to in point (a). </p> <p>   </p> <p> In addition to the aforementioned bans, the following shall be prohibited: </p> <p> (a)        any disbursement or payment by the European Investment Bank (EIB) under or in connection with any existing agreements entered into between the Republic of Belarus or any public authority thereof and the EIB; </p> <p> (b)        the continuation by the EIB of any existing Technical Assistance Service Contracts relating to projects financed under the agreements referred to in point (a), and which are intended for the direct or indirect benefit of the Republic of Belarus or any public authority thereof to be performed in Belarus. </p> <p>   </p> <p> The prohibitions shall be without prejudice to the execution of contracts concluded before 25 June 2021 or ancillary contracts necessary for the execution of such contracts. </p> <p>   </p> <p> The EU Council’s decision shall become effective on 25 June 2021. </p> <p>   </p> <p> As previously reported, the Council of the European Union (EU) at the level of foreign ministers of EU member states approved on 21 June 2021 the fourth package of individual sanctions on Belarus targeting 78 individuals and eight entities. The list of persons and entities hit by the sanctions includes MAZ, BelAZ, New Oil Company, Belaeronavigatsia air traffic service company, Bremino Group, Logex and Globalcustommanagement logistics companies, Sohra (exporter of Belarusian equipment), as well as the defence minister and the head of the Investigation Committee of Belarus, some judges, employees of security agencies and major businessmen. The EU Council also agreed to impose sanctions against seven sectors of the Belarusian economy, including exports of potash fertilizers and petrochemical products to the EU. The discussion of sectoral economic sanctions against Belarus will continue at a summit of the EU heads of state on June 24-25. The sectoral sanctions would be approved after the summit. </p> <p>   </p> <p> The United States on 21 June 2021 introduced sanctions against Belarus’ 16 individuals and 5 entities in response to human rights abuse and the Ryanair diversion incident. The United Kingdom (UK) on June 21 imposed sanctions against 11 individuals and two entities of Belarus after the Ryanair plane incident, as well as in response to human rights violations and suppression of democracy. Canada on 21 June 2021 imposed sanctions against 17 individuals and five entities of Belarus after the Ryanair plane incident and in response to human rights abuse. End </p> <p>   </p> <p> As previously reported, after the August 2020 presidential elections in Belarus, a political crisis began in the country. The authorities responded to the protests of citizens who disagreed with the election results with harsh repression and persecution. Since October 2020, the EU has already introduced three packages of sanctions against the Belarusian authorities, and after the Ryanair incident in Minsk a fourth package is in the pipeline. </p> <p>   </p> <p> On May 23, a Vilnius-bound Ryanair plane that took off from Athens made an emergency landing at Minsk International Airport after a reported bomb threat. A MiG-29 fighter jet alert crew was scrambled to escort the plane. After the landing, the plane was inspected and no bomb was found on board. Among the passengers on that flight was Roman Protasevich, one of the co-founders of the Nexta Telegram channel recognized as extremist in Belarus. He was arrested and faces charges under three articles of the Criminal Code of Belarus. End </p>

2021-06-25

Primepress