Proposal for a Directive on the definition of criminal offences and penalties for the violation of Union restrictive measures

Summary:

Legislative initiative tabled by the European Commission on 2 December 2022, seeking to harmonise criminal offences and penalties for the violation of restrictive measures imposed by the European Union (EU).

Further information:

Restrictive measures are used to promote the objectives of the Common Foreign and Security Policy (CFSP), as set out in the Treaty on the European Union (TEU). These objectives include safeguarding EU values, maintaining international peace and security, and consolidating and supporting democracy, the rule of law and human rights. In this context, the European Union (EU) may impose sanctions against non-EU countries, entities, legal or natural persons.

As the adoption of EU restrictive measures intensified over the years, so too have the schemes to circumvent them. The European Commission highlighted in the past that their inconsistent enforcement undermines their efficacy and the EU's ability to speak with one voice. In the context of Russia's invasion of Ukraine, the Commission set up a Freeze and Seize Task Force ensuring coordination among Member States and EU agencies when it comes to enforcement of sanctions. However, the implementation and enforcement of EU restrictive measures has primarily been the responsibility of EU countries.

This draft law seeks to approximate definitions of criminal offences related to the violation of EU restrictive measures; ensure effective, dissuasive and proportionate penalty types and levels for these criminal offences; foster cross-border investigation and prosecution; improve the operational effectiveness of national enforcement chains.

The proposed Directive was adopted by the European Commission on 2 December 2022, following up on the adoption of Council Decision (EU) 2022/2332. The Council of the European Union adopted its general approach to the draft law on 9 June 2023. The plenary of the European Parliament endorsed a negotiating position on 12 July. An informal agreement between the co-legislators on a compromise text for this file on 12 December.

• Primary Source

Commentary and Analysis

Mayer Brown: Perspectives, 05/12/2022: European Commission proposes common definitions and penalties for EU sanctions violations https://www.mayerbrown.com/en/perspectives-events/publications/2022/12/european-commission-proposes-common-definitions-and-penalties-for-eu-sanctions-violations

Noerr: Insights, 12/12/2022: New EU Legislation: Violations of Sanctions as EU Crimes https://www.noerr.com/en/insights/new-eu-legislation-violations-of-sanctions-as-eu-crimes

Linklaters: Business Crime Links Blog, 20/12/2022: Commission proposes to overhaul the enforcement of breaches of EU sanctions https://www.linklaters.com/en/insights/blogs/businesscrimelinks/2022/december/commission-proposes-to-overhaul-the-enforcement-of-breaches-of-eu-sanctions

European Parliamentary Research Service (EPRS): Briefing, 11/07/2023: Proposal for a directive on the violation of Union restrictive measures https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2023)751409

Transparency International (EU), 18/07/2023: Forging a shield against EU sanctions violations: insights into the Parliament’s and Council’s positions https://transparency.eu/forging-a-shield-against-eu-sanctions-violations-insights-into-the-parliaments-and-councils-positions/

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News

The Sofia Globe, 12/12/2023: Political agreement on new rules criminalising violation of EU sanctions https://sofiaglobe.com/2023/12/12/political-agreement-on-new-rules-criminalising-violation-of-eu-sanctions/

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Official

European Parliament: Legislative Observatory: Procedure File for Proposal on definition of criminal offences and penalties for the violation of Union restrictive measures (2022/0398(OLP)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2022/0398(OLP)

European Parliament: Legislative Train Schedule: Proposal for a directive on the definition of criminal offences and penalties for the violation of Union restrictive measures https://www.europarl.europa.eu/legislative-train/theme-promoting-our-european-way-of-life/file-proposal-for-a-directive-on-the-violation-of-eu-sanctions

European Commission: Press Release, 02/12/2022: Ukraine: Commission proposes to criminalise the violation of EU sanctions https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7371

European Commission: Questions and Answers: Commission proposes to criminalise evasion of EU sanctions (2 December 2022) https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_7373

Renew Europe EP Group: Newsroom, 02/12/2022: No hiding place for Putin's oligarchs https://www.reneweuropegroup.eu/news/2022-12-02/no-hiding-place-for-putins-oligarchs

Council of the European Union: Press Release, 09/06/2023: EU sanctions: Council finalises position on law that aligns penalties for violations https://www.consilium.europa.eu/en/press/press-releases/2023/06/09/eu-sanctions-council-finalises-position-on-law-that-aligns-penalties-for-violations/

Council of the European Union: Press Release, 12/12/2023: Council and Parliament reach political agreement to criminalise violation of EU sanctions https://www.consilium.europa.eu/en/press/press-releases/2023/12/12/council-and-parliament-reach-political-agreement-to-criminalise-violation-of-eu-sanctions/

European Commission: Press Release, 12/12/2023: Commission welcomes political agreement on new rules criminalising the violation of EU sanctions https://ec.europa.eu/commission/presscorner/detail/en/ip_23_6535

Renew Europe EP Group: Newsroom, 12/12/2023: Deal on new Directive on violations of EU sanctions https://www.reneweuropegroup.eu/news/2023-12-12/deal-on-new-directive-on-violations-of-eu-sanctions

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