Belarus: Sanctions imposed by the Council of the European Union on the Belarusian Economy pursuant to Council Regulation (EU) 2021/1030
Reference
Clearstream Banking1 informs customers that on 24 June 2021 the Council of the European Union (EU Council) adopted a Decision and Council Regulation (EU) 2021/1030 of 24 June 2021 (“the Regulation”) that imposes a number of restrictive measures on the Belarusian economy, including restrictions on access to EU capital markets by the Belarusian government and certain other Belarusian entities.
Effective date
The capital markets restrictive measures are applicable to securities or instruments issued after, or loans and credits made after
29 June 2021
Clearstream Banking informs customers in particular of Article 1j of the newly announced restrictions in the Regulation, under which 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 by:
(a) The Republic of Belarus, its Government, its public bodies, corporations or agencies;
(b) A major credit or other institution established in Belarus with over 50% public ownership or control as of 1 June 2021, as listed in Annex IX of the Regulation;
(c) A legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50% by an entity listed in Annex IX of the Regulation; or
(d) A legal person, entity or body acting on behalf or at the direction of an entity referred to in point (c) of this Article or listed in Annex IX of the Regulation.
Under Article 1k of the newly announced restrictions in the Regulation, it 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, to:
(a) The Republic of Belarus, its Government, its public bodies, corporations or agencies; or
(b) A major credit or other institution established in Belarus with over 50% public ownership or control as of 1 June 2021, as listed in Annex IX of the Regulation; or
(c) A legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50% by an entity listed in Annex IX of the Regulation; or
(d) Any natural or legal person, entity or body when acting on behalf or at the direction of a legal person, entity or body referred to in point (c).
Entities to whom restrictions apply
In Annex IX of the Regulation, the entities on the list of credit or other institutions referred to in Articles 1j and 1k includes:
- Belarusbank
- Belinvestbank
- Belagroprombank
Prohibition on circumvention of restrictions imposed by the Regulation
Under Article 1m it is also prohibited to participate, knowingly and intentionally, in activities whose object or effect is, directly or indirectly, to circumvent the prohibitions outlined in Article 1j.
Primary Market
Clearstream Banking is monitoring any new issuances in respect of the above.
Secondary Market
If there are any operational requirements required of customers, Clearstream Banking will communicate this in due time. The prohibitions relating to transferable securities, money-market instruments, loans and credits are applicable to securities or instruments issued after, or loans and credits made after, 29 June 2021.
Income and Corporate Events
Clearstream Banking will monitor income and corporate events on a case-by-case basis.
Further information
Notwithstanding the above changes to requirements, customers are reminded that according to the Clearstream Banking General Terms and Conditions, they are responsible for ensuring that all instructions settled by them through Clearstream Banking comply with applicable laws, including sanctions.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.