General licence – IOM/2022/RUS027
The Treasury has the power to issue General Licences for financial and trade sanctions regimes under a number of Regulations.
On 20 July 2022, the Treasury issued General licence – IOM/2022/RUS027 under regulation 64 of the Russia Sanctions (EU Exit) Regulations 2019, as they apply to the Isle of Man by the Russia Sanctions (Application) Regulations 2020 [SD 2020/0504] (“the Regulations”).
Any persons intending to use General Licence IOM/2022/RUS027 should consult the copy of the Licence for full details of the permissions and usage requirements which can be found attached to this release.
General Licence IOM/2022/RUS027 allows for a 7 day wind down period in respect of the outward investment ban.
For the purposes of General Licence IOM/2022/RUS027:
“investment services” has the same meaning as it has in Regulation 16 of the Russia Regulations;
a “Person” means an individual, a body of persons corporate or unincorporate, any organisation or any association or combination of persons;
“relevant entity” has the same meaning as it has in Regulation 18B of the Russia Regulations;
“connected with Russia” has the same meaning as it has in Regulation 19A of the Russia Regulations;
a “Relevant Institution” means:
- a person who is licensed under the Financial Services Act 2008 (of Tynwald) to carry on a regulated activity within the meaning of section 3 of that Act;
- a person who is authorised or registered under the Insurance Act 2008 (of Tynwald) or holds a permit under that Act;
- a person who is registered under the Moneylenders Act 1991 (of Tynwald) to carry on the business of lending money;
- a person who is acting as a trustee or an administrator of a retirement benefits scheme within the meaning of the Retirement Benefits Schemes Act 2008 (of Tynwald)
Under General Licence IOM/2022/RUS027 a Person may:
- directly acquire any ownership interest in land located in Russia;
- directly acquire any ownership interest in or control over a person, other than an individual, connected with Russia;
- directly or indirectly establish any joint venture with a person connected with Russia;
- open a representative office or establish a branch or subsidiary located in Russia.
- For the purpose mentioned in paragraph 3 of Regulation 18B of the Russia Regulations, subject to the conditions below, a Person may:
- indirectly acquire any ownership interest in land located in Russia;
- indirectly acquire any ownership interest in or control over a person, other than an individual, connected with Russia;
- directly or indirectly acquire any ownership interest in or control over, a relevant entity; and
- Provide investment services directly related to an activity referred to in paragraph 4.1 – 4.5 above.
- wind down any transactions relating to the activities referred to in paragraphs 4.1-4.6 to which it is a party involving a person connected with Russia or relevant entity.
- Carry out activity necessary to facilitate the completion of the activities referred to in paragraph 4.
General
The permissions in General Licence IOM/2022/RUS027 do not authorise any act which will result in funds or economic resources being made available in breach of The Russia Regulations, save as permitted under licences granted under The Russia Regulations.
The General Licence takes effect from the date of issue and expires on 26 July 2022.
Further details of the sanctions regime related to Russia may be found on the Customs and Excise pages of the Isle of Man Government website.
