Under the relevant regulations made under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA), you will find exemptions and licencing provisions. For example, under the Russia (Sanctions) (EU Exit) Regulations 2019 (the Russia Regulations), which is the main legal instrument that implements the UK’s sanctions against Russia, licencing provisions can be found under Part 7 whilst the exemptions can be found under regulation 61.
The body responsible for granting licences is the Office of Financial Sanctions Implementation (OFSI). For further information on how to make an licence application, please read our ‘how to guide’: OFSI Licence Application | Eldwick Law.
In addition to specific licences, the UK government routinely issues general licences which allow for activity otherwise prohibited. Details of the current general licences issued by OFSI can be found at the following link: OFSI General Licences – GOV.UK
Finally, as regards exemptions, the Russia Regulations contain a number of exceptions to actions that would otherwise be considered prohibited. However, analysing whether an exemption applies can be complicated, and we have significant experience of advising individuals and businesses on whether their transactions or commercial dealings fall within one of the exemptions.
Representative matters:
- Advising a company on the effect that the UK’s sanctions regime may have on its current business operations and in particular their use of patented software, belonging to a Russian based company. Advice took into consideration the fact of their being granted a three-year global licence for the use of the software, subject to an annual fee.
- Advising a sanctioned entity on the effect that the sanctions imposed by Ukraine upon them may have within the United Kingdom, as of the UK’s exit from the EU.
- Advising the client on whether the financial and investment sanctions imposed by the Russia (Sanctions) (EU Exit) Regulations 2019 prohibit them from purchasing shares in a sanctioned entity, from UK nationals on the secondary market.
- Advising a UK company, with subsidiaries in India, on the impact of sanctions on the export of pharmaceuticals to Russia, under the Russia Regulations. Issues concerning dual-use and the approach taken by the recently formed Office of Trade Sanctions Implementation (OTSI).
- Advising a UK chemical company on divestment of its subsidiary from Russia, including in obtaining trade licences from the Export Control Joint Unit.