Executive Summary:
Council Regulation (EU) 2021/1986 amends Regulation (EC) No 765/2006 concerning restrictive measures against Belarus. It addresses unintended consequences of previous sanctions, specifically regarding insurance and reinsurance. The regulation prohibits providing insurance or reinsurance to the Belarusian government, public bodies, and related entities, with certain exceptions. It entered into force on the day following its publication in the Official Journal of the European Union.
Key Points / Main Content:
Prohibition of Insurance/Reinsurance:
* It is prohibited to provide insurance or reinsurance to the Belarusian Government, its public bodies, corporations, or agencies.
* The prohibition extends to any natural or legal person, entity, or body acting on behalf or at the direction of the Belarusian government or its entities.
Exceptions to Prohibition:
* The prohibition does not apply to compulsory or third-party liability insurance for Belarusian persons, entities, or bodies where the risk is situated in the Union.
* Insurance for Belarusian diplomatic or consular missions in the Union is also exempted.
Contractual Obligations:
* The prohibitions do not prejudice the execution of contracts concluded before June 25, 2021, or ancillary contracts necessary for their execution.
Impact Analysis:
Belarusian Government, Public Bodies, Corporations, and Agencies:
* Impact: Restricted access to insurance and reinsurance services, potentially affecting their operations and financial activities, except where exemptions apply.
* Action Required: Seek alternative insurance arrangements within the scope of the allowed exceptions or from providers outside the EU.
EU Insurance and Reinsurance Providers:
* Impact: Prohibition on providing insurance and reinsurance services to the Belarusian government and related entities, except where exemptions apply.
* Action Required: Ensure compliance with the new regulations, update internal policies, and conduct due diligence to avoid prohibited transactions.
Belarusian Persons, Entities, or Bodies:
* Impact: Restriction on insurance coverage, except for compulsory or third-party liability insurance where the risk is situated in the Union, and insurance for Belarusian diplomatic or consular missions in the Union.
* Action Required: Understand the limitations on insurance coverage and seek compliant insurance solutions when operating within the EU or through diplomatic/consular missions.
Key Entities Referenced
European Union: An international organization consisting of European countries.
Belarus: A country in Eastern Europe which is the subject of the restrictive measures outlined in the regulation.
Council Regulation (EC) No 765/2006: A European Council Regulation concerning restrictive measures in respect of Belarus.
Council Decision 2012/642/CFSP: A Council Decision concerning restrictive measures in view of the situation in Belarus.
High Representative of the Union for Foreign Affairs and Security Policy: An officeholder responsible for leading the EU's Common Foreign and Security Policy.
European Commission: An institution of the European Union, responsible for proposing legislation, enforcing EU laws and directing the Union's administrative operations.
Treaty on the Functioning of the European Union: One of the primary treaties of the European Union.
Brussels: The location where the regulation was adopted. Brussels is the capital of Belgium and a major center for European Union institutions.
16.11.2021 EN Official Journal of the European Union L 405/3
COUNCIL REGULATION (EU) 2021/1986
of 15 November 2021
amending Regulation (EC) No 765/2006 concerning restrictive measures in respect of Belarus
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 215 thereof,
Having regard to Council Decision 2012/642/CFSP of 15 October 2012 concerning restrictive measures in view of the
situation in Belarus(1),
Having regard to the joint proposal from the High Representative of the Union for Foreign Affairs and Security Policy and
the European Commission,
Whereas:
(1) Council Regulation (EC) No 765/2006(2)gives effect to Decision 2012/642/CFSP and provides in particular for the
freezing of funds and economic resources of, and prohibits making funds or economic resources available to,
persons, entities or bodies responsible for serious violations of human rights or the repression of civil society and
democratic opposition, or whose activities otherwise seriously undermine democracy or the rule of law in Belarus
or who benefit from or support the Lukashenka regime.
(2) Council Regulation (EU) 2021/1030(3), which amended Regulation (EC) No 765/2006, introduced further targeted
economic sanctions, including a prohibition on providing insurance and re-insurance to the Belarusian Government
and Belarusian public bodies and agencies.
(3) On 15 November 2021, the Council adopted Decision (CFSP) 2021/1989(4), which amends Decision
2012/642/CFSP and introduces certain exceptions to the prohibition on providing insurance and re-insurance to
the Belarusian Government and Belarusian public bodies and agencies, in order to avoid unintended consequences.
(4) Certain measures fall within the scope of the Treaty and, therefore, with a view to ensuring its uniform application
by economic operators in all Member States, regulatory action at the level of the Union is necessary in order to
implement those measures.
(5) Regulation (EC) No 765/2006 should therefore be amended accordingly,
HAS ADOPTED THIS REGULATION:
Article 1
Article 1l of Regulation (EC) No 765/2006 is replaced by the following:
‘Article 1l
1. It shall be prohibited to provide insurance or re-insurance to:
(i) the Belarusian Government, its public bodies, corporations or agencies; or
(ii) any natural or legal person, entity or body acting on behalf or at the direction of a legal person, entity or body referred
to in point (i).
(1) OJ L 285, 17.10.2012, p. 1.
(2) Council Regulation (EC) No 765/2006 of 18 May 2006 concerning restrictive measures in respect of Belarus (OJ L 134, 20.5.2006,
p. 1).
(3) Council Regulation (EU) 2021/1030 of 24 June 2021 amending Regulation (EC) No 765/2006 concerning restrictive measures in
respect of Belarus (OJ L 224 I, 24.6.2021, p. 1).
(4) Council Decision (CFSP) 2021/1989 of 15 November 2021 amending Decision 2012/642/CFSP concerning restrictive measures in
view of the situation in Belarus (see page 8 of this Official Journal).L 405/4 EN Official Journal of the European Union 16.11.2021
2. The prohibitions in paragraph 1 shall not apply to the provision of compulsory or third party liability insurance to
Belarusian persons, entities or bodies where the risk insured is situated in the Union or to the provision of insurance for
Belarusian diplomatic or consular missions in the Union.
3. The prohibitions in paragraph 1 shall be without prejudice to the execution of contracts concluded
before 25 June 2021, or ancillary contracts necessary for the execution of such contracts.’.
Article 2
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 15 November 2021.
For the Council
The President
J. BORRELL FONTELLES