Following is part 9 of our series on current European Union sanctions against the Russian Federation. Before continuing, be sure to catch up on our previous posts regarding sanctions against the Russian Federation:

Post 1:  EU SANCTIONS AGAINST THE RUSSIAN FEDERATION – AN OVERVIEW
Post 2:  EU SANCTIONS AGAINST THE RUSSIAN FEDERATION – MARCH 2022
Post 3: EU SANCTIONS AGAINST THE RUSSIAN FEDERATION – APRIL & JUNE 2022
Post 4: EU SANCTIONS AGAINST THE RUSSIAN FEDERATION – CRIMINALIZATION OF SANCTION VIOLATIONS
Post 5: EU SANCTIONS AGAINST THE RUSSIAN FEDERATION – LUXURY GOODS
Post 6: EU SANCTIONS AGAINST THE RUSSIAN FEDERATION – TRANSFERABLE SECURITIES
Post 7: EU SANCTIONS AGAINST THE RUSSIAN FEDERATION – JULY 2022
Post 8: EU SANCTIONS AGAINST THE RUSSIAN FEDERATION – OCTOBER 2022

POST 9: LEGAL SERVICES PROVISION OF OCTOBER 2022 PACKAGE

On 6 October 2022 the European Union adopted the 8^th package of sanctions to the Russian Federation in response to its war against Ukraine. The Council Regulation (EU) 833/2014, as amended by the Council Regulation (EU) 2022/1904 prohibits EU member entities from directly or indirectly providing legal services to the Russian government and to legal persons established in Russia, as of 6 October 2022.

The prohibition covers:

• providing legal counsel to customers in non-contentious matters, including commercial transactions which involve the application or interpretation of law,
• participation with or on behalf of clients in commercial transactions, negotiations and other dealings with third parties,
• preparation, execution, and verification of legal documents.

However, the prohibition does not extend to:

• representation, advice, preparation and verification of documents in the context of legal representation, namely in matters or proceedings before administrative agencies, courts, other duly constituted official tribunals, and arbitral and mediation proceedings;
• providing services, which are strictly necessary to ensure access to judicial, administrative or arbitral proceedings in a Member State, or for the recognition or enforcement of a judgment or an arbitration award rendered in a Member State;
• termination by 8 January 2023 of contracts, concluded before 7 October 2022, or of ancillary contracts necessary for the execution of such contracts;
• services to individuals, who are Russian nationals, or to Russian lawyers
• services related to humanitarian or diplomatic activities or those tied to public health or natural disaster emergency services (contingent on prior authorization by a competent agency);
• civil society activities that directly promote democracy, human rights or the rule of law in Russia;
• services intended for the exclusive use of legal persons established in Russia, that are owned by, or solely or jointly controlled by, EU entities.

EU member states must set forth their own rules for enforcement and penalization of those who breach sanctions. Measures can include the confiscation of legal service proceeds. In Austria, the following authorities are competent for the implementation of EU restrictive measures:

– The Federal Ministry of the Interior, Directorate State Protection and Intelligence Service,

– Federal Ministry of Justice,

– The Federal Ministry of Science, Research and Economy, Department C2/9,

– Federal Ministry for Labour and Economy, Department V/2 – Export Control,

– Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology,

– Austrian National Bank, Legal Department.

The Federal Act on the Implementation of International Sanctions (“Sanktionengesetz”, SanktG) and the Foreign Trade Act (“Außenwirtschaftsgesetz”, AußWG) regulate the implementation of applicable sanctions of the European Union in Austria.

The Sanktionengesetz imposes both criminal and administrative liabilities for sanction breaches (judicial penalties and administrative penalties). In accordance with the Sanktionengesetz, penalties for sanction breaches, which include providing legal services prohibited by recent sanctions, can amount to fines of up to EUR 100,000 or imprisonment of up to two years, depending on the actual breach. In particular, the providing services contrary to the sanctions in force, constitutes an administrative offence and is punishable with imprisonment of up to six weeks or a fine of up to EUR 50,000. Sanctioned legal services exceeding a value of EUR 100,000 are punishable with imprisonment of up to two years or a fine of up to 360 daily rates. Under the Außenwirtschaftsgesetz, a breach of sanctions can lead to up to five years of imprisonment.

**Our series of articles on EU restrictive measures are provided for information purposes only and do not constitute legal advice. For professional advice tailored to your particular case, please contact us at: .**