Regulation 18B Investments in relation to RussiaF1
A person (“P”) must not carry on an activity mentioned in paragraph (2) if P knows, or has reasonable cause to suspect, that P is carrying on such an activity.
The activities in this paragraph are—
directly acquiring any ownership interest in land located in Russia;
indirectly acquiring any ownership interest in land located in Russia for the purpose mentioned in paragraph (3);
directly acquiring any ownership interest in or control over a person, other than an individual, connected with Russia;
indirectly acquiring any ownership interest in or control over a person, other than an individual, connected with Russia for the purpose mentioned in paragraph (3);
directly or indirectly acquiring any ownership interest in or control over a relevant entity for the purpose mentioned in paragraph (3);
directly or indirectly establishing any joint venture with a person connected with Russia;
opening a representative office or establishing a branch or subsidiary located in Russia; or
providing investment services directly related to an activity referred to in sub-paragraphs (a) to (g).
The purpose mentioned in paragraph 2(b), (d) and (e) above is making funds or economic resources available—
directly or indirectly to a person connected with Russia; or
for the benefit of a person connected with Russia.
For the purposes of paragraph (3)—
economic resources are made available to a person connected with Russia only if that person would be likely to exchange the economic resources for, or use them in exchange for, funds, goods or services;
making funds or economic resources indirectly available to a person connected with Russia includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person connected with Russia; and
funds or economic resources are made available for the benefit of a person connected with Russia only if that person thereby obtains, or is able to obtain, a significant financial benefit, and “financial benefit” includes the discharge (or partial discharge) of a financial obligation for which the person connected with Russia is wholly or partly responsible.
Paragraph (1) is subject to Part 7 (Exceptions and licences).
A person who contravenes a prohibition in paragraph (1) commits an offence.
In this regulation, the reference to a person (“P”) directly or indirectly acquiring any ownership interest in or control over a person or entity means—
P directly or indirectly acquiring any share in the person or entity;
P directly or indirectly acquiring any voting rights in the person or entity;
P directly or indirectly acquiring any right to appoint or remove a majority of the board of directors of the person or entity; or
P directly or indirectly acquiring any means of ensuring that the affairs of the person or entity are conducted in accordance with the wishes of P where it is reasonable, having regard to all of the circumstances, to expect that P would (if P chose to) in most cases or significant respects, by whatever means, be able to do so.
In this regulation—
“branch” means, in relation to a person other than an individual, a place of business which forms a legally dependent part of that person and which carries out all or some of the transactions inherent in the business of that person;
“investment services” has the same meaning as it has in regulation 16 (dealing with transferable securities or money-market instruments);
“relevant entity” means a person, other than an individual, which F2... is not a person connected with Russia.
Annotations
Textual amendments
- F1
Reg. 18B inserted (19.7.2022) by The Russia (Sanctions) (EU Exit) (Amendment) (No. 12) Regulations 2022 (S.I. 2022/801), regs. 1(2), 4
- F2
Words in reg. 18B(8) omitted (16.12.2022) by virtue of The Russia (Sanctions) (EU Exit) (Amendment) (No. 17) Regulations 2022 (S.I. 2022/1331), regs. 1(2)(b), 6
Notes on the whole SI
Textual amendments
- F1
Regulations extended (British overseas territories) (with modifications) (31.12.2020 immediately after both S.I. 2020/590 and S.I. 2020/951 have come into force) by The Russia (Sanctions) (Overseas Territories) Order 2020 (S.I. 2020/1571), arts. 1(1), 2, Schs. 1, 2 (as amended: (11.3.2021) by S.I. 2021/288, arts. 1(1), 2(2); (14.4.2022) by S.I. 2022/453, arts. 1(1), 3-38; (20.7.2022) by S.I. 2022/843, arts. 1(1), 3; (10.11.2022) by S.I. 2022/1167, arts. 1(1), 3-17; (15.12.2022) by S.I. 2022/1338, arts. 1(1), 3-10; (9.3.2023) by S.I. 2023/291, arts. 1(1), 3-9; (20.7.2023) by S.I. 2023/846, arts. 1(1), 3, 5-22; (30.9.2023) by S.I. 2023/846, arts. 1(2), 4; (14.3.2024) by S.I. 2024/370, arts. 1, 3-13; (3.10.2024) by S.I. 2024/987, arts. 1(1), 3-6; and (11.12.2025) by S.I. 2025/1307, art. 1(1), Sch. 15)