The Treasury advises that the following regulations came into operation on 03 March 2022:
a) Russia Sanctions (Application) Regulations 2022 [SD 2022/0098]
b) Russia Sanctions (Application) (No.2) Regulations 2022 [SD 2022/0101]
c) Russia Sanctions (Application) (No.3) Regulations 2022 [SD 2022/0102]
which apply the provisions of the following United Kingdom statutory instruments relating to Russia financial and trade sanctions to the Island -
a) the Russia (Sanctions) (EU Exit) (Amendment) (No.2) Regulations 2022
b) the Russia (Sanctions) (EU Exit) (Amendment) (No.3) Regulations 2022
c) the Russia (Sanctions) (EU Exit) (Amendment) (No.4) Regulations 2022
d) the Russia (Sanctions) (EU Exit) (Amendment) (No.5) Regulations 2022
The Russia (Sanctions) (EU Exit) Regulations 2019 (of UK Parliament) (the “Russia Regulations”) were applied to the Island, and currently have effect in the Island, by the Russia Sanctions (Application) Regulations 2020 [SD 2020/0504]. The Russia Regulations were amended in the United Kingdom in response to Russian actions in Ukraine. The Isle of Man has adopted these measures to ensure that sanctions against Russia in the Island are aligned with the United Kingdom.
Russia Sanctions (Application) Regulations 2022 - add new financial sanctions and existing restrictions are amended to extend the sanctions prohibitions to a broader range of transferable securities and money market instruments. Further restrictions on correspondent banking relationships and processing of sterling payments are also introduced.
These Regulations provide for licensing powers in relation to those prohibitions. In particular, there is provision to make clear that a licence may authorise acts which would otherwise be prohibited by any of regulations for a prescribed length of time. This would allow a period for persons affected to arrange their affairs to comply.
The prohibitions on the export, supply, delivery and making available of military goods/technology are extended and also replace prohibitions to include dual-use goods/technology and critical-industry goods/technology. Related prohibitions on the provision of technical assistance, financial services, funds and brokering services are also extended in relation to dual-use goods and technology and critical-industry goods and technology.
A number of exceptions from the trade prohibitions on critical-industry goods and technology are provided for, in relation to personal items and diplomatic missions, consular posts and international organisations, the movement of aircraft and vessels, consumer communication devices and software updates, and emergencies.
Russia Sanctions (Application) (No.2) Regulations 2022 – prohibit Russian ships, and other ships specified by the Secretary of State, from entering ports in the Isle of Man. The Regulations provide the Secretary of State with a power to control the movement of Russian ships or specified ships by requiring them to leave or enter specified ports, proceed to a specified place or remain where they are.
The Regulations also confer powers on the Secretary of State and harbour authorities to detain Russian ships or specified ships at ports or anchorages. The registration of ships on the Isle of Man Ship Register is prohibited where they are owned, controlled, chartered or operated by a designated person or persons connected with Russia, or where they are a specified ship.
An exception from the prohibition on port entry is provided for where access or entry is needed by the ship in case of emergency.
Russia Sanctions (Application) (No.3) Regulations 2022 - prohibit a UK individual or entity from providing financial services for the purpose of foreign exchange reserve and asset management to:
- the Central Bank of the Russian Federation
- the National Wealth Fund of the Russian Federation
- the Ministry of Finance of the Russian Federation
- a person owned or controlled directly or indirectly by any of the persons above; or
- a person acting on behalf of or at the direction of any of the persons above
Additionally the Regulations insert licensing grounds relating to these new provisions.
Failure to comply with financial and trade sanctions legislation or to attempting to circumvent its provisions is a criminal offence.
Further details of the sanctions regime related to Russia and links to other financial sanctions regimes may be found on the Customs and Excise pages of the Isle of Man Government website.