Page 24 - SA Chamber UK-NOV News letter 2023
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RUSSIA: A LABYRINTHINE
WORLD OF SANCTIONS
REGULATIONS
This article by Milton Silverman, a Partner at Streathers Solicitors, explores the laws imposing
sanctions against Russia, and what businesses who trade internationally need to be aware of in
order to stay on the right side of the law.
Most of the population are aware of sanctions legislation operating against high-profile
Russian oligarchs, and the impounding of assets which can result from that. Perhaps less
well-known are certain other provisions under The Russian (Sanctions) (EU Exit) Regulations
2019.
Section 46B states as follows:
(1) The export of luxury goods to, or for use in, Russia is prohibited.
[“Works of art, collectors’ pieces and antiques” are included in the definition of “luxury goods”.]
(2) A person must not directly or indirectly:
(a) supply or deliver luxury goods from a third country to a place in Russia;
(b) make luxury goods available to a person connected with Russia;
(c) make luxury goods available for use in Russia.
[….]
(4) A person who contravenes a prohibition in paragraph (2) commits an offence, but:
(a) it is a defence for a person charged with the offence of contravening paragraph
(2)(a) to show that the person did not know and had no reasonable cause to
suspect that the goods were destined (or ultimately destined) for Russia;
(b) it is a defence for a person charged with the offence of contravening paragraph
(2)(b) (“P”) to show that P did not know and had no reasonable cause to suspect
that the person was connected with Russia;
(c) it is a defence for a person charged with the offence of contravening paragraph
(2)(c) to show that the person did not know and had no reasonable cause to
suspect that the goods were for use in Russia.
Look carefully at the following in 46B 2(b) above: “… to a person connected with Russia”.
Given the completely global nature of the art trade, you may wonder precisely what
‘connected with Russia’ means.
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SA CHAMBER UK NEWSLETTER NOVEMBER 2023
