Please find set out below some recent interesting developments concerning EU export controls and sanctions.

EU economic sanctions Russia

The EU recently extended the economic sanctions targeting specific sectors of the Russian economy until January 31, 2017. 

This extension will enable the Council to further assess the implementation of the Minsk agreement, agreed between the leaders of Ukraine, Russia, France and Germany and pro-Russian separatists in March 2015. The Minsk agreement should result in a cease-fire and political settlement of the conflict between Ukrainian government forces and pro-Russian separatists in eastern Ukraine. The lifting of the EU sanctions depends on Russia fulfilling its obligations under the Minsk agreement.

Brexit and Export Controls

On June 23, 2016, the referendum to decide whether the United Kingdom (UK) should remain in or leave the EU was held and resulted in a small majority of British voters deciding in favor of leaving the EU.

A Brexit will most likely impact UK export controls and sanctions regimes as well as raising questions about the type of relationship the UK will establish with the EU in this respect. These questions are especially relevant in respect of the free movement of goods within the EU, including the free movement of dual-use goods. An important question is whether the EU and the UK will suffice with general export authorizations allowing the free movement of dual-use goods between their territories or whether individual export licenses will need to be obtained.

Either way, an unavoidable consequence of the Brexit will be an increased compliance burden for EU–UK trade, which does not exist for trade between EU Member States. Multinationals need to anticipate this and take appropriate steps.

Questions?

We have specialists dedicated to national and international export controls and sanctions, ensuring that we are well-placed to help understand local and global operating commitments and requirements and answer any questions you may have.

Meijburg & Co Contact Information

For additional information on our Trade and Customs Practice and its Export Control & Sanctions Services, please contact your local KPMG Meijburg & Co advisor or go to our website:
http://www.meijburg.com/page/trade-customs