The Republic of Belarus (Sanctions) (EU Exit) (Amendment) Regulations 2022

(1ZA) The prohibitions in 15A (securities and money market instruments) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.

• (b) after paragraph (1B), insert—

(1C) The prohibition in regulation 15CA (provision of financial services relating to foreign exchange reserve and asset management) does not apply to anything done under the authority of a licence issued by the Treasury under this paragraph. (1D) Without prejudice to the generality of the powers conferred by paragraphs (1) to (1C), a licence issued by the Treasury under those paragraphs may, in particular, authorise acts which would otherwise be prohibited by any of regulations 11 to 15CA for a particular period beginning with— (a) the coming into force of the prohibition, or (b) where the prohibition relates to a person designated for the purposes of regulations 11 to 15, the date on which the person was designated.

• (c) after paragraph (4) insert—

(5) The Treasury may issue a licence under paragraph (1C) which authorises acts by a particular person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 4 of Schedule 3.

Aircraft licences

36

After regulation 33 (trade licences), insert—

(33A) The prohibition in regulation 29A(A1) (prohibition on overflight or landing) does not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Licences: general provisions

37

In regulation 34 (licences: general provisions), in paragraph (1), for “and trade licences” substitute “, trade licences and aircraft licences”.

Aircraft: licensing offences

38

After regulation 36 (trade: licensing offences), insert—

(36A) (1) A person (“P”) commits an offence if P knowingly or recklessly— (a) provides information that is false in a material respect, or (b) provides or produces a document that is not what it purports to be, for the purpose of obtaining an aircraft licence (whether for P or anyone else). (2) A person who purports to act under the authority of an aircraft licence but who fails to comply with any condition of the licence commits an offence. (3) A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

PART 7 — Information, records and enforcement

Information and records

39

In Part 7 (Information and records)—

• (a) in regulation 40(5) (finance: powers to request information)

• (i) at the end of sub-paragraph (a), omit “or”;

• (ii) in sub-paragraph (b), for “licence.” substitute “licence, or”;

• (iii) after sub-paragraph (b), insert—

(c) any matter to which a licence relates, where that licence authorises an act that would otherwise be prohibited under— (i) regulation 15A (dealing with transferable securities or money market instruments), (ii) regulation 15B (loans and credit arrangements), (iii) regulation 15C (insurance and reinsurance services), or (iv) regulation 15CA (provision of financial services relating to foreign exchange reserve and asset management).

• (b) in regulation 43(2)(a) (trade: application of information powers in CEMA)—

• (i) omit “2A,”,

• (ii) for the words “regulation 21(1)” to the end, substitute “regulation 21 (export of goods to, or for use in, Belarus) or 27I (import of goods originating from, or consigned from, Belarus), or”;

• (c) in regulation 46 (disclosure of information)—

• (i) in paragraph (1)(b)(i), after “Part 5A (Aircraft)” insert “or Part 5B (Ships)”,

• (ii) in paragraph (2)(d)(ii), for the words “regulation 21(1)” to the end, substitute “regulation 21 (export of goods to, or for use in, Belarus) or 27I (import of goods originating from, or consigned from, Belarus).”.

Offences

40

In Part 8 (Enforcement)—

• (a) in regulation 48 (penalties for offences)—

• (i) in paragraph (1), for “regulation 29D(1), (2) or (3) (aircraft: offences)” substitute “regulation 29D(A1) to (3) (aircraft offences), 29F (prohibition on port entry), 29G(4) (directions prohibiting port entry), 29H(3) (movement of ships) or ”;

• (ii) in paragraph (3), for “36” substitute “36 (trade: licensing offences) and 36A (aircraft: licensing offences)”;

• (iii) in paragraph (4), after “29D(4)(confidentiality),” insert “29G(6) (directions prohibiting port entry: confidentiality), 29H(5) (movement of ships: confidentiality),”;

• (b) in regulation 50 (jurisdiction to try offences), in paragraph (1), after “Part 5A (Aircraft),” insert “Part 5B (Ships),”;

• (c) in regulation 54 (trade offences in CEMA)—

• (i) in paragraph (1), for the words “regulation 21(1)” to the end, substitute “regulation 21 (export of goods to, or for use in, Belarus).”;

• (ii) in paragraph (3), for the words “regulation 21(1)” to the end, substitute “regulation 21 (export of goods to, or for use in, Belarus) or 27I(1) or (2) (import of goods originating in, or consigned from, Belarus).”;

• (iii) in paragraph (5), for “regulation 27I(1) or (2) (import of potash and petroleum products)” substitute “regulation 27I(1) or (2) (import of goods originating in, or consigned from, Belarus).”.

Maritime enforcement

41

In regulation 57 (exercise of maritime enforcement powers), for paragraph (2) substitute—

(2) The maritime enforcement powers may be exercised for the purpose of enforcing any of the following— (a) the prohibition in regulation 21 (export of goods to, or for use in, Belarus) (b) the prohibition in regulation 22 (supply and delivery of goods from a third country to Belarus); (c) the prohibitions in regulation 23 (making available goods and technology to a person connected with, or for use in, Belarus); (d) the prohibitions in regulation 24 (transfer of technology to a place in, or person connected with, Belarus); (e) the prohibitions in regulation 27I(1) or (2), regulation 27J(1) or (3) or regulation 27K(1) or (2) (import, acquisition and supply and delivery of goods); (f) a prohibition imposed by a condition of a licence issued under regulation 33 (trade licences) in relation to a prohibition mentioned in any of sub-paragraphs (a) to (e).

PART 8 — Schedules

Amendments to Schedule 2B

42

In Schedule 2B (potash, petroleum products and tobacco industry goods)—

• (a) for the heading, substitute “Iron and steel products, potash, mineral products, and tobacco industry goods”;

• (b) in paragraph 2—

• (i) in the definition of “potash”, after paragraph (a) insert—

(aa) 3104 20 50;

• (ii) after the definition of “potash”, insert—

• “iron and steel products” means any thing falling within the following commodity codes— 72; 73.
• “mineral products” means any thing falling within the following commodity codes— 2710; 2711; 2712; 2713; 2715; 2707.

• (iii) omit the definition of “petroleum products”.

New schedules 2C to 2G

43

After Schedule 2B, insert the following Schedules, which are set out in the Schedule to these Regulations—

• (a) Schedule 2C (critical-industry goods and technology);

• (b) Schedule 2D (consumer communication devices);

• (c) Schedules 2E (luxury goods);

• (d) Schedule 2F (oil refining goods and technology);

• (e) Schedule 2G (quantum computing and advanced materials goods and technology).

Amendments to Schedule 3

44

In Schedule 3 (Treasury licences: purposes)—

• (a) for paragraph 7, including the heading, substitute—

(7) (1) To enable anything to be done in order that the functions of a diplomatic mission or consular post in Belarus or of an international organisation enjoying immunities in accordance with international law may be carried out. (2) To enable anything to be done in order that the functions of a diplomatic mission or consular post of Belarus in the United Kingdom may be carried out.

• (b) after paragraph 10 insert—

(10A) (1) To enable anything to be done in connection with the provision of medical goods or services for the benefit of the civilian population of a country. (2) To enable the import, export or use of medical goods. (3) In paragraphs (1) and (2), “medical goods” includes medicines and medical devices. (10B) To enable anything to be done in connection with the production or distribution of food for the benefit of the civilian population of a country.

• (c) for paragraph 14, including the heading, substitute—

(14) (1) To enable anything to be done in order that the functions of a diplomatic mission or consular post in Belarus or of an international organisation enjoying immunities in accordance with international law may be carried out. (2) To enable anything to be done in order that the functions of a diplomatic mission or consular post of Belarus in the United Kingdom may be carried out.

• (d) after paragraph 14, insert—

(14A) (1) To enable anything to be done in connection with the provision of medical goods or services for the benefit of the civilian population of a country. (2) To enable the import, export or use of medical goods. (3) In paragraphs (1) and (2), “medical goods” includes medicines and medical devices. (14B) To enable anything to be done in connection with the production or distribution of food for the benefit of the civilian population of a country.

• (e) after paragraph 17, insert—

(18) (1) To enable anything to be done in connection with the provision of medical goods or services for the benefit of the civilian population of a country. (2) To enable the import, export or use of medical goods. (3) In paragraphs (1) and (2), “medical goods” includes medicines and medical devices. (19) To enable anything to be done in connection with the production or distribution of food for the benefit of the civilian population of a country. (20) To enable anything to be done in connection with the performance of any humanitarian assistance activity. (21) (1) To enable anything to be done by, or on behalf of, a relevant financial authority for the purposes of the functions of that authority. (2) In sub-paragraph (1), “relevant financial authority” means authorities involved in the regulation of financial services in the United Kingdom, including the Financial Conduct Authority, the Prudential Regulation Authority and the Bank of England. (22) To enable anything to be done by a person, following consultation by that person (or a person acting on their behalf) with the Bank of England, that is necessary or expedient in order to protect or enhance the stability of the financial system of the United Kingdom. (23) To enable anything to be done by a person, following consultation by that person (or a person acting on their behalf) with the relevant supervising authority or authorities, that is necessary or expedient in order to promote the safety and soundness of a firm which is supervised by the Bank of England, the Prudential Regulation Authority or the Financial Conduct Authority. (24) To enable anything to be done to deal with an extraordinary situation.

PART 9 — Transitional provision and consequential amendments

Transitional provision: trade licences

45

• (1) Paragraph (2) applies in relation to a relevant authorisation which—

• (a) was in effect immediately before the relevant date, and

• (b) authorises an act which would (on and after the relevant date, and in the absence of paragraph (2)) be prohibited by Part 5 (Trade) of the 2019 Regulations,

and such a licence or authorisation is referred to in this regulation as an “existing trade licence”.

• (2) A licence is deemed to have been issued at the beginning of the relevant date by the Secretary of State under regulation 33 (trade licences) of the 2019 Regulations—

• (a) disapplying every provision of Part 5 of the 2019 Regulations which would, in the absence of this paragraph, prohibit any act authorised by the existing trade licence, and

• (b) otherwise in the same terms as the existing trade licence.

• (3) In this regulation—

• “2019 Regulations” means the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019;

• “relevant authorisation” means a licence or authorisation granted by the Secretary of State under— the Export Control Order 2008, the Dual-Use Regulation, Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items[^f00013] as it has effect by virtue of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement[^f00014], or Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021 setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items (recast)[^f00015] as it has effect by virtue of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement;

• “relevant date” means the date on which these Regulations come into force.

Amendment of the Merchant Shipping (Registration of Ships) Regulations 1993

46

• (1) Regulation 1 (citation, commencement and interpretation) of the Merchant Shipping (Registration of Ships) Regulations 1993[^f00016] is amended as follows.

• (2) In paragraph (2)—

• (a) in the definition of “relevant provisions of the sanctions regulations”—

• (i) at the end of paragraph (a), omit “or”;

• (ii) at the end of paragraph (b), insert “or”;

• (iii) after paragraph (b) insert—

(c) regulation 29J(1) (registration of ships in the United Kingdom) of the Belarus (Sanctions) (EU Exit) Regulations 2019;

• (b) in the definition of “termination directions”—

• (i) at the end of paragraph (a), omit “or”;

• (ii) at the end of paragraph (b), insert “or”;

• (iii) after paragraph (b), insert—

(c) regulation 29J(2) (registration of ships in the United Kingdom) of the Belarus (Sanctions) (EU Exit) Regulations 2019;

SCHEDULE

Signed

Ahmad — Minister of State — Foreign, Commonwealth and Development Office — 30th June 2022

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) (“the Sanctions Act”) to amend the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/600) (“the 2019 Regulations”).

Part 2 adds new purposes and designation criteria to the 2019 Regulations, targeting role of the Government of Belarus in supporting Russia’s actions in respect of Ukraine. Part 2 also introduces a power to designate persons by description and makes related changes to designation provisions, including reflecting amendments made to the Sanctions Act by the Economic Crime (Transparency and Enforcement) Act 2022 (c. 10).

Part 3 widens the financial sanctions relating to Belarus. Existing restrictions on dealing with financial instruments and providing loans are extended to a broader range of transferable securities, money market instruments, loans and credit. Part 3 also introduces a new prohibition on providing financial services for the purpose of foreign exchange reserve and asset management of the Central Bank of Belarus and the Ministry of Finance of Belarus and related persons.

Part 4 widens trade sanctions relating to Belarus. New export restrictions are imposed on goods and technology relating to critical industry, quantum computing and oil refining, and luxury goods, while prohibitions are widened in relation to dual-use goods and technology. New import restrictions are imposed on mineral products, arms and related materiel, iron and steel. A range of related trade activities are prohibited, including technical assistance and financial services relating to certain other prohibited trade activities, and enabling or facilitating military activities. An existing prohibition on providing technical assistance to designated persons in relation to aircraft is widened to include technical assistance provided in relation to ships.

Part 5 adds new aircraft and shipping sanctions. The current aircraft restrictions are widened so that it will now be an offence for certain Belarus-related aircraft to land in, or overfly, the UK, and for such aircraft to be registered in the UK. Part 5 also adds shipping restrictions, prohibiting certain Belarus-related or other specified ships from entering UK ports or being registered in the UK, and providing powers to the Secretary of State to direct the movement and detention of such ships.

Part 6 deals with exceptions and licencing powers. New exceptions in respect of the new trade provisions are included for travellers, diplomatic posts, international organisations, consumer communication devices and software, and for emergencies.

Parts 7 to 9 make related changes to information and enforcement powers, to Schedules, and to other legislation.

A full impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector has been published alongside these Regulations and is available from legislation.gov.uk or from the Foreign, Commonwealth and Development Office, King Charles Street, London SW1A 2AH.

Footnotes

[^f00001]: The power to make regulations under Part 1 of the Sanctions and Anti-Money Laundering Act 2018 (c. 13) is conferred on an appropriate Minister. Section 1(9)(a) of the Act defines an “appropriate Minister” as including the Secretary of State.

[^f00002]: 2018 c. 13. Section 17(5)(b)(i) (enforcement) is amended by the Sentencing Act 2020 (c. 17), Schedule 24, paragraph 443(1). Sections 1, 11, 12, 14 and 45 are amended by the Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), sections 57, 58, 59, 60 and 62.

[^f00003]: S.I. 2019/600, as amended by S.I. 2020/590; S.I. 2020/951; S.I. 2021/1146; and by the Sentencing Act 2020 (c. 17).

[^f00004]: 2006 c. 46.

[^f00005]: Section 22 was amended by the Financial Guidance and Claims Act 2018 (c. 10), section 27(4); the Financial Services Act 2012, section 7(1); S.I. 2017/500; and S.I. 2018/135.

[^f00006]: S.I. 2001/544, as amended, most recently by S.I. 2021/90; and S.I. 2021/494.

[^f00007]: Schedule 2 was amended by the Regulation of Financial Services (Land Transactions) Act 2005 (c. 24), section 1; the Dormant Bank and Building Society Accounts Act 2008 (c. 31), section 15 and Schedule 2, paragraph 1; the Financial Services Act 2012, sections 7(2) to (5) and 8; the Financial Guidance and Claims Act 2018 (c. 10), section 27; S.I. 2013/1881; S.I. S.I. 2018/135; and S.I. 2019/63.

[^f00008]: S.I. 2008/3231. Schedule 2 was substituted by S.I. 2017/85 and Schedule 3 was substituted by S.I. 2010/2007. Subsequent amendments to those Schedules were made by S.I. 2012/1910; S.I. 2014/1069; S.I. 2015/940; S.I. 2017/85; S.I 2017/697; S.I. 2018/165; 2018/939; S.I. 2019/137; S.I. 2019/989; S.I. 2019/1159; S.I. 2020/1502 and 2021/586. There are other instruments which amend other parts of the Order, which are not relevant to these Regulations.

[^f00009]: See regulation 2 of the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019 for the definition of “the Dual Use Regulation”.

[^f00010]: 2018 c. 5.

[^f00011]: 1995 c. 21. Section 284(1), (2), (2A), (2B), (3) was inserted and amended by the Merchant Shipping and Maritime Security Act 1997 (c. 28), Schedule 1, paragraph 5 and S.I. 2015/664.

[^f00012]: Subsection (1A) was inserted by paragraph 5(3) of Schedule 1 to the Merchant Shipping and Maritime Security Act 1997.

[^f00013]: OJ No. L 134, 29.5.2009, p. 1; relevant amending instruments are OJ No. L 326, 8.12.2011, p. 26, OJ No. L 173, 12.6.2014, and OJ No. L 428, 30.12.2019, p. 1.

[^f00014]: A copy of the EU withdrawal agreement may be found online at https://www.gov.uk/government/publications/new-withdrawal-agreement-and-political-declaration.

[^f00015]: OJ L 206, 11.6.2021.

[^f00016]: S.I. 1993/3138. Regulation 1 was amended by S.I. 2022/203 and S.I. 2022/241. There are other amendments not relevant to these Regulations.