Here’s a breakdown of Council Regulation (EU) 2025/903:
**1. Essence of the Act:**
This regulation amends Council Regulation (EU) No 269/2014, which concerns restrictive measures against actions undermining Ukraine’s territorial integrity, sovereignty, and independence. The amendment introduces a new criterion for listing individuals or entities involved in transferring ownership, control, or economic benefits from the business interests of leading Russian businesspersons already under sanctions. It also clarifies the burden of proof required to maintain these leading businesspersons on the sanctions list, even if they claim to have transferred their business interests.
**2. Structure and Main Provisions:**
* **Article 1:** This article contains the core amendments to Regulation (EU) No 269/2014.
* **Addition to Article 3(1):** A new point (m) is added, targeting individuals or entities that have participated in or enabled the transfer of ownership, control, or economic benefit of the business interests of leading Russian businesspersons who are already sanctioned. This applies if the transfer significantly frustrates the existing sanctions, with exceptions for transfers explicitly permitted by EU regulations.
* **Insertion of Article 3(1b):** This new paragraph addresses leading businesspersons operating in Russia who are listed in Annex I and claim to have transferred their business interests after February 24, 2022. It states that these individuals will continue to be considered leading businesspersons and remain on the sanctions list unless sufficient, recent, and reliable information proves they no longer meet the original criteria for being sanctioned.
* **Article 2:** This article specifies that the regulation comes into force on the day following its publication in the Official Journal of the European Union and is binding in its entirety and directly applicable in all Member States.
**3. Main Provisions Important for Use:**
* **New Listing Criterion (Article 1(1)):** The addition of point (m) to Article 3(1) is crucial. It broadens the scope of sanctions to include those facilitating the transfer of assets from sanctioned individuals, which aims to prevent the circumvention of existing measures.
* **Burden of Proof (Article 1(2)):** The insertion of Article 3(1b) is significant because it shifts the burden of proof. Leading businesspersons who claim to have transferred their assets must now demonstrate that they no longer meet the criteria for being sanctioned. This provision is designed to prevent individuals from easily evading sanctions through nominal transfers of ownership.
