Consolidated FAQs on the implementation of Council Regulation No 833/2014 and Council Regulation No 269/2014 [Version of 3 March 2023]

The European Commission (EC) has published an updated consolidated version of its „FAQs on the implementation of Council Regulation No 833/2014 and Council Regulation No 269/2014“ in the light of the ongoing conflict in Ukraine. The consolidated version includes FAQs concerning EU sanctions „adopted following Russia’s military aggression against Ukraine“.
The update includes the following changes in section G „SECTOR SPECIFIC QUESTIONS“, topic 2 „AVIATION“ page 274, which we would like to present in full, quote:
26. Does the derogation under Article 12b(1) of Council Regulation (EU) No 833/2014 allow the sale to Russian entities of leased aircraft lost in Russia?
Inter alia, Article 12b(1) of Council Regulation (EU) No 833/2014 allows the competent authorities to authorise, by way of derogation from Article 3c, the sale, supply or transfer of goods and technologies listed in Annex XX (including aircraft), until 30 September 2023. Such authorisation can only be granted where such sale, supply or transfer is strictly necessary for: (i) the divestment from Russia or (ii) the wind-down of business activities in Russia.
The aim of such derogation is to facilitate an expeditious exit from the Russian market by EU operators.
This derogation does not allow the competent authorities to authorise the sale to Russian entities of leased aircraft lost in Russia, i.e. aircraft that remain in Russia against the will of their non Russian owner and despite the latter’s demand for their return.
The leasing of aircraft to a Russian person does not qualify as investment in Russia. Consequently, the owners/lessors of the aircraft cannot be considered as divesting from Russia for the mere fact that they discontinued the supply of aircraft to that country as a consequence of sanctions imposing them to do so since 26 February 2022, for new contracts, and since 28 March, for pre-existing contracts. Similarly, they should not be considered as inding-down business activities in Russia, to the extent that they have already discontinued the supply of the aircraft to Russia for the same reason and from the same dates onwards.
In any event, the sale of the aircraft would not be strictly necessary for the owners of the aircraft to exit the Russian market, as this exit is possible even if the lessors retain ownership of the aircraft.