On 21 April 2023, the UK implemented The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2023 (“18th Amendment”) which amends The Russia (Sanctions) (EU Exit) Regulations 2019 (“UK Russia Regulations”). This follows from the UK Government’s announcement on 24 February 2023 to, amongst other things, expand the list of products subject to restrictions on import into the UK, supply and delivery to non-UK countries and export restrictions. The announcement can be found on Gov.uk.

This client alert sets out a brief summary of headline amendments.

Iron and steel products from Russia

The list of iron and steel products restricted under Chapter 4C of the UK Russia Regulations has been substantially expanded by the insertion of a new Part 3 in Schedule 3B. This covers, amongst other things, products falling under HS Codes:

  • 7206 (iron and non-alloy steel in ingots or other primary forms (excl. Remelting scrap ingots, products obtained by continuous casting and iron of heading 7203)); and 
  • 7207 (Semi-finished products of iron or non-alloy steel).

This means that unless an exemption applies, Chapter 4C now prohibits UK persons from, directly or indirectly, (i) importing; (ii) acquiring; and (iii) supplying or delivering from a place in Russia to a non-UK country, the relevant additional iron and steel products where they are consigned from Russia, located in Russia, or of Russian origin. Associated technical assistance, brokering services, financing and financial services are also prohibited.

The 18th Amendment introduced a new wind-down relating to goods specified in Part 3 of Schedule 3B where such goods are (i) consigned from Russia before 21 April 2023; and (ii) imported into the UK before 21 May 2023.

Iron and steel products processed in third country

A new Chapter 4CA has been inserted, but only comes into force on 30 September 2023.

This imposes a restriction on imports into the UK of “relevant processed iron or steel product” on or after 30 September 2023. Again, there are associated restrictions on technical assistance, brokering services, financing and financial services.

“Relevant processed iron or steel product” is defined as any iron or steel product specified in Schedule 3B (iron and steel products) which:

  • has been altered, transformed in any way, or subjected to any other type of operation or process, in each case, in a third country; and
  • incorporates one or more “iron or steel products” originating in Russia.

Revenue generating goods

There is now a distinction between “Schedule 3D revenue generating goods” and “Schedule 3DA revenue generating goods”.

Schedule 3D revenue generating goods are only restricted if they are being imported or acquired with the intention of entering the UK. Associated technical assistance, brokering services, financing and financial services are also prohibited.

Schedule 3DA revenue generating goods are subject to broader restrictions and prohibits UK persons from, directly or indirectly, (i) importing; (ii) acquiring; and (iii) supplying or delivering from a place in Russia to a non-UK country, goods falling under Schedule 3DA which are consigned from Russia, located in Russia, or of Russian origin. Associated technical assistance, brokering services, financing and financial services are also prohibited.

Notably, a significant number of goods previously classified as ‘revenue generating goods’ subject to UK import restrictions only, have now been re-assigned to Schedule 3DA and are therefore subject to the broader restrictions on supplying to non-UK countries.

Similar to the position in relation to the expanded list of iron and steel products, the new wind-down relating to goods specified in Part 3 of Schedule 3D and 3DA applies where such goods are (i) consigned from Russia before 21 April 2023; and (ii) imported into the UK before 21 May 2023.

G7 dependency and Russia’s vulnerable goods

The list of goods subject to export restrictions pursuant to the G7 dependency and further goods (Chapter 4H) and Russia’s vulnerable goods (Chapter 4M) measures have been expanded. In many cases, these are goods already subject to restriction under the EU Russia Regulations.

Other amendments

Various other remedial amendments have also been made to the UK Russia Regulations. Notable amendments are as follows:

  • Deletion of the “supply and delivery from a place in Russia into the United Kingdom” restriction for (i) gold; (ii) Chapter 4I (oil import ban); and (iii) coal and coal products. These products remain subject to import restrictions. Thus, it appears the change is to limit the use of ‘supply and delivery’ terminology within the UK Russia Regulations to scenarios involving exports to Russia or transactions from Russia to non-UK countries.
  • Various clarificatory amendments to various lists of goods in the Schedules.