Subject: Companies operating in the EU that are owned or managed by sanctioned Russians oligarchs
In the last round of EU sanctions against the Russian government, several CEOs of businesses operating in the European Union were sanctioned (Annex to Council Decision 2014/145/CFSP), including the CEOs of various information companies such as Yandex. Another example is the CEO of MLU B.V, Tigran Khudaverdyan, who according to the aforementioned Decision is a ‘key element in hiding information from Russians about the war in Ukraine’ and whose company ‘has been warning Russian users looking for news about Ukraine on its search engine of unreliable information on the internet, after the Russian Government threatened Russian media over what they publish’.
Given that this company and others referred to in the justifications for individual sanctions against CEOs are still operating in the EU market:
1. Will the Commission withdraw licences from information companies operating in the EU that are owned or managed by sanctioned Russians?
2. Can the Commission confirm that companies such as Yandex will be added to Annex XV of Regulation 833/2014 on the grounds that EU legislation now deems them agents of the Russian Federation?
3. Does the Commission recognise that failure to do so now would leave the original personal sanctions open to challenge by those sanctioned?
Answer given by Ms McGuinness on behalf of the European Commission (3 June 2022)
Pursuant to Article 2f (2) of Regulation 833/2014 (1) the broadcasting licence of persons, entities or bodies listed in Annex XV shall be suspended. This provision does not apply to persons, entities or bodies not listed in Annex XV.
For example, it does not apply to Yandex, a company associated with Mr Tigran Oganesovich Khudaverdyan, who is a person listed in Annex I to Council Regulation (EU) No 269/2014. (2)
The restrictions applicable to a person listed in Annex I to Council Regulation (EU) No 269/2014 (asset freeze and a prohibition to make funds and economic resources available to them or for their benefit) can affect transactions with natural or legal persons, entities or bodies associated with them.
Therefore, operators need to exert appropriate due diligence when dealing with Yandex, which is associated with Mr Khudaverdyan.
At this stage, the Commission cannot confirm whether companies such as Yandex will be added to Annex XV. Decisions on the adoption, renewal, or lifting of individual and sectoral restrictive measures ((i.e. any decision to add an entity to Annex XV) are taken by unanimity by Member States in the Council.
The Commission does not comment on discussions in the Council, nor on any possible additional measures that may be taken by the Council in light of Russian aggression against Ukraine.
⋅1∙ Article 2f (2) of Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia's actions destabilising the situation in
Ukraine (OJ L 229, 31.7.2014, p. 1).
⋅2∙ Council Regulation (EU) No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity,
sovereignty and independence of Ukraine (OJ L 078 17.3.2014, p. 6).