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EU and German Sanctions Regime: A Comprehensive Overview

The European Union (EU) and Germany have established a robust sanctions regime to restrict trade with countries that violate human rights, engage in terrorism, or pose a threat to international peace and security. This article provides an overview of the EU’s sanctions framework, including its Blocking Statute, as well as German legislation related to boycott declarations and data protection.

EU Sanctions

The EU’s sanctions generally apply:

  • Within the territory of the EU
  • On board any aircraft or vessel under the jurisdiction of an EU member state
  • To any person inside or outside the territory of the EU who is a national of an EU member state
  • To any legal person, entity, or body, inside or pursuant to obligations that arise outside of EU or EU member state law

EU Blocking Statute

On August 6, 2018, the EU enacted Commission Delegated Regulation (EU) 2018/1100, which amended Council Regulation (EC) No 2271/96. The EU Blocking Statute prohibits compliance by EU entities with certain U.S. sanctions on Iran and Cuba. This statute was originally enacted in 1996 as a countermeasure to U.S. extraterritorial sanctions against Cuba, Libya, and Iran.

German Legislation

Germany has implemented its own legislation related to boycott declarations and data protection:

  • AWV (Außenwirtschaftsverordnung): Section 7 prohibits the issuing of a declaration in foreign trade and payments transactions whereby a resident participates in a boycott against another country.
  • General Data Protection Regulation: Sanctions screening involves screening customer data against designated sanction lists.

Reporting Requirements

Yes, there are sanctions-related reporting requirements under EU Financial Sanctions and German legislation:

  • Those subject to EU Financial Sanctions must supply immediate information on any changes to their status or circumstances that may affect the applicability of the sanctions.
  • Under German law, reports must be filed with the Federal Office for Economic Affairs (BAFA) if a person is involved in activities related to sanctions violations.

Conclusion

The EU and Germany have implemented a comprehensive sanctions regime to protect their interests and those of other countries. Understanding these regimes is crucial for businesses operating in international trade to ensure compliance with applicable laws and regulations. Failure to comply may result in severe penalties, including fines and criminal prosecution.

References

  • Commission Delegated Regulation (EU) 2018/1100
  • Council Regulation (EC) No 2271/96
  • AWV (Außenwirtschaftsverordnung)
  • General Data Protection Regulation
  • EU Financial Sanctions
  • Council Regulation (EU) 269/2014

Note

This article is intended as a general overview and should not be considered legal advice. Readers are advised to consult with qualified legal professionals for specific guidance on their situation.