In the last weeks, the EU has approved and published several official statements on the situation in the Crimea and Eastern Ukraine.
On 18 July, the Information Note to EU business operating and/or investing in Crimea/Sevastopol (the “Information Note”) was published on the official website of the Council of the European Union, and on 29 July, the Presidents of the European Council and European Commission announced additional restrictive measures relating to the illegal annexation of the Crimea and the situation in Eastern Ukraine, which was officially published by the EU Council on 30 July (the “Sanctions Statement”).
1. Information Note
The EU Council warns European citizens and investors that the regulatory framework in the Crimea is rapidly changing and remains unclear. Any activity carried out under the Russian legislation in the territory of the annexed peninsula is not recognised by Ukraine and most other countries that follow the policy of “non-recognition” of the illegal annexation of the Crimea by the Russian Federation. The juxtaposition of jurisdictions leads to major legal uncertainty which has a direct impact on business. This concerns, among others, the validity of contracts and licences, the implementation of decisions of the Crimean courts in third countries, available legal remedies, etc.
2. Sanctions Statement
The Sanctions Statement establishes new restrictions for European investors on business activity in the Crimea and Eastern Ukraine and transactions with securities issued by Russian state-owned financial institutions, and prohibits investment in the key economic sectors of the Crimea.
Restrictions on economic activity in the territory of the Crimea and Eastern Ukraine
Restrictions on transactions with securities issued by Russian state-owned financial institutions
Prohibition of investment in the key economic sectors of the Crimea and Sevastopol
If you would like to receive regular updates on the developments in the Crimea, you are invited to subscribe to Sayenko Kharenko’s special Crimea Alert at email@example.com.