Such restrictive measures are part of the so called “fifth package” of sanctions agreed by the EU since February the 23rd 2022 which are an addition to those in force since 2014 following the occupation of Crimea.
The latest Regulation introduces a prohibition on being a beneficiary, acting as a trustee or in similar capacities for Russian persons and entities, as well as a prohibition on providing certain services to trusts.
More precisely, it shall be prohibited to register, provide a registered office, business or administrative address as well as management services to, a trust or any similar legal arrangement having as a trustor or a beneficiary:
- Russian nationals or natural persons residing in Russia;
- legal persons, entities or bodies established in Russia;
- legal persons, entities or bodies whose proprietary rights are directly or indirectly owned for more than 50 % by a natural or legal person, entity or body referred to in the previous points;
- legal persons, entities or bodies controlled by a natural or legal person, entity or body referred to in the previous points;
- a natural or legal person, entity or body acting on behalf or at the direction of a natural or legal person, entity or body referred to in the previous points.
The restrictive measures shall not apply when the trustor or beneficiary is a national of a Member State or a natural person having a temporary or permanent residence permit in a Member State.
Moreover, it shall be prohibited as of 10 May 2022 to act as, or arrange for another person to act as, a trustee, nominee shareholder, director, secretary, or a similar position, for a trust or similar legal arrangement as referred above.
The afore mentioned restrictive measures shall not apply to the operations that are strictly necessary for the termination by 10 May 2022 of contracts concluded before 9 April 2022 or ancillary contracts necessary for the execution of such contracts.
By way of derogation, the competent authorities may authorise the services referred to therein, under such conditions as they deem appropriate, after having determined that this is necessary for:
- humanitarian purposes, such as delivering or facilitating the delivery of assistance, including medical supplies, food, or the transfer of humanitarian workers and related assistance or for evacuations; or
- social activities that directly promote democracy, human rights, or the rule of law in Russia.
In the light of these bans and the sanctions applicable in case of breach, it is necessary for all European subjects to pay extreme attention and verify the lawfulness of all transactions with the targeted parties.
Our professionals at Belluzzo and Partners in Italy, Switzerland, United Kingdom and Singapore are at your disposal for any assistance you may require in this regard.
