On 17 October 2016 the President of Ukraine enacted1 the decision of the National Security and Defense Council of Ukraine imposing new personal sanctions against 335 individuals and 167 entities, and extending the sanctions imposed in September 2015 against 388 individuals and 105 entities for one more year.

The updated sanctions list mainly affects Russian legal entities in the following sectors:

• Industrial complex: Rusal, Rostovtopprom, Donalians, Binom-D, Monolit Impeks and others;

• Military complex: Rosteh, Rosoboroneksport, Rostvertol, Izhmash and others;

• Gas, machine-building and energy: Kamaz, Bashneft, Novocherkaska GRES, Spezneftegaz, Transmashholding, Diakont, Hidropres, Rysneftedobycha and others;

• Tobacco industry: Megapolis;

• Aviation and navigation: Uktus, Ikar, Alrosa, Jet Air Group, Sokol, Transoptimal-Rostov, Horp-shipping Agency, Ladoga, V.F. Tanker - Invest, Gazprom Flot, Transpetrochart, Aviation Complex named after Iliushin and others; and

• Payment services: Zolota Korona, Kolibri, Unistream, Anelik, Blizko and others.

In addition to freezing assets, restrictions on trade operations, restrictions on exit of capital from Ukraine, suspension of performance of economic and financial obligations, prohibition on participation in public procurement, denial and cancellation of visas and prohibition on entering Ukraine, the Decree also imposed the following new sanctions:

• prohibition on lease and privatisation of state assets by companies controlled by individuals subject to sanctions;

• prohibition on executing agreements with respect to securities issued by entities subject to sanctions;

• prohibition on charter capital increase for companies controlled/owned (by more than 10%) by individuals/legal entities subject to sanctions;

• prohibition for the National Bank of Ukraine (the "NBU") to issue licenses for investments in the foreign country subject to sanctions and placement of currency values on accounts and deposits in the foreign country;

• prohibition on issuing licenses, permits and other authorizations allowing import or export of currency values from the foreign country subject to sanctions to Ukraine, or to such foreign country from Ukraine;

• limitation of cash withdrawals from payment cards issued by residents of a foreign country subject to sanctions;

• prohibition on registering the participant of the international payment system, the payment organization of which is a resident of the foreign country subject to sanctions;

• restriction on flights and transit of resources and goods via the territory of Ukraine; and

• prohibition or limitation on entry of foreign non-military vessels and warships to the territorial sea of Ukraine and its internal waters, ports and aircrafts to the airspace of Ukraine or landing on the territory of Ukraine.

The full list of legal entities and individuals subject to sanctions is given in the annexes to the Decree.

Any counterparty dealing with entities or individuals on the sanctions list must carefully assess the exact scope of sanctions imposed and the implications of dealing with such entities and individuals.

Please refer to our legal alert (here) for further information on the sanctions imposed in September 2015 that have been extended for one more year.

As previously announced, Baker & McKenzie has set up a dedicated blog, accessible on http://www.bakermckenzie.com/sanctionsnews/, to provide real-time updates on international sanctions and critical developments regarding the Ukraine crisis from an international trade compliance perspective.

1 Presidential Decree No. 467/2016 approving the Decision of the National Security and Defense Council of Ukraine dated 17 October 2016 (the “Decree”).

Additional notes

This LEGAL ALERT is issued to inform Baker & McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases.