This Regulation amends the EU sanctions regime against Russia by introducing new derogations to the asset freeze measures. The act specifically addresses the management of frozen funds by central securities depositories in the EU and provides mechanisms for releasing certain cash balances under specific conditions. It also extends the deadline for the sale of certain proprietary rights by designated individuals.The Regulation consists of two main articles. Article 1 introduces two significant amendments to Regulation (EU) No 269/2014: first, it modifies paragraph 5f of Article 6b regarding the sale of proprietary rights by certain listed individuals, and second, it adds a new paragraph 5j establishing a derogation mechanism for central securities depositories.The key provisions include:
– Extension of the deadline to June 30, 2025, for the sale and transfer of proprietary rights by specific listed individuals
– New mechanism allowing central securities depositories to request unfreezing of cash balances under strict conditions
– Five specific criteria that must be met for the release of frozen cash balances, including verification that the funds will be used to meet legal obligations towards participants
– Requirement that any released cash balance must not violate the general prohibition on making funds available to designated persons and entities
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