On 8 April 2022, the EU adopted its fifth sanctions package in response to Russia’s targeting of civilians. Council Regulation (EU) 2022/576 introduces certain further sectoral restrictions by way of amendment to Regulation (EU) 833/2014 (Regulation 833), these being a part of the restrictions in the new sanctions package. The new measures were published in the Official Journal of the EU on 8 April 2022 and came into force on 9 April 2022.

Regulation 833 now includes a new Article 5m which provides that it is prohibited to register, provide a registered office, business or administrative address as well as management services to, a trust or any similar legal arrangement having as a trustor or a beneficiary:

• Russian nationals or natural persons residing in Russia
• Legal persons, entities or bodies established in Russia
• Legal persons, entities or bodies whose proprietary rights are directly or indirectly owned for more than 50 per cent by a natural or legal person, entity or body referred to in the points above
• Legal persons, entities or bodies controlled by a natural or legal person, entity or body referred to in the points above
• A natural or legal person, entity or body acting on behalf or at the direction of a natural or legal person, entity or body referred to in the points above

It will further be prohibited as of 10 May 2022 to act as, or arrange for another person to act as, a trustee, nominee shareholder, director, secretary or a similar position, for a trust or similar legal arrangement as referred to above.

Article 5m further stipulates that the above prohibitions will not apply to:

• Operations that are strictly necessary for the termination by 10 May 2022 of contracts which are not compliant with the above prohibitions above concluded before 9 April 2022 or ancillary contracts necessary for the execution of such contracts
• Trustors or beneficiaries who are nationals of a Member State or natural persons having a temporary or permanent residence permit in a Member State

Council Regulation (EU) 2022/576 introducing Article 5m can be found here.

Regulation 833 can be found here (please note that on the date of publication this is available in consolidated form to include amendments only up until 15 March 2022).

You can find our table outlining all measures introduced in connection with the situation in Ukraine, including all measures issued under the fifth wave of measures, here.