The European Union has extended economic sanctions targeting specific sectors of the Russian economy until 31 January 2017.
This extension will enable the Council to further assess the implementation of the Minsk agreement (in general, a cease-fire and political settlement of the conflict in Ukraine)—as agreed by the leaders of Ukraine, Russia, France, and Germany and pro-Russian separatists in March 2015. The lifting of the EU sanctions depends on Russia fulfilling its obligations under the Minsk agreement.
The UK referendum decision to leave the EU—“Brexit”—is expected to affect UK export controls and sanctions regimes. It also raises questions with regard to the free movement of goods within the EU, including the free movement of dual-use goods. For example, will the EU and UK provide general export authorizations, allowing the free movement of dual-use goods between their territories, or will individual export licenses need to be obtained? At this point, it appears that there will be an increased compliance burden for EU-UK trade that does not exist for trade among the EU Member States.
Read an August 2016 report prepared by the KPMG member firms in the Netherlands: Developments concerning EU export controls and sanctions
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.