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COUNCIL REGULATION (EC) No 1210/2003 L 169/6EN Official Journal of the European Union 8.7.2003 COUNCIL REGULATION (EC) No 1210/2003 of 7 July 2003 concerning certain specific restrictions on economic and financial relations with Iraq and repealing Regulation (EC) No 2465/96 THE COUNCIL OF THE EUROPEAN UNION, (6) The Resolution stipulates that all petroleum, petroleum products and natural gas exported by Iraq, as well as the Having regard to the Treaty establishing the European Com- payments for such goods, should be exempt from legal munity, and in particular Articles 60 and 301 thereof, proceedings, attachment, garnishment and execution by those having claims against Iraq. This temporary measure is necessary in order to promote the economic Having regard to Common Position 2003/495/CFSP on Iraq reconstruction of Iraq and the restructuring of its debt, and repealing Common Positions 1996/741/CFSP and 2002/ which will help remove the threat to international peace 599/CFSP (1), and security constituted by the current situation in Iraq in the common interest of the international community and in particular the Community and its Member States. Having regard to the proposal from the Commission, Whereas: (7) Common Position 2003/495/CFSP makes provision for an amendment of the current Community regime in (1) Further to United Nations Security Council Resolution order to align it with UNSC Resolution 1483 (2003). 661 (1990) and subsequent relevant Resolutions, in particular Resolution 986 (1995), the Council imposed a comprehensive embargo on trade with Iraq. This embargo is at present laid down in Council Regulation (8) These measures fall under the scope of the Treaty and, (EC) No 2465/96 of 17 December 1996 concerning the therefore, in particular with a view to avoiding distortion interruption of economic and financial relations between of competition, Community legislation is necessary to the European Community and Iraq (2). implement the relevant decisions of the Security Council as far as the territory of the Community is concerned. For the purposes of this Regulation, the territory of the (2) In its Resolution 1483 (2003) of 22 May 2003, the Community is deemed to encompass the territories of Security Council decided that, with certain exceptions, the Member States to which the Treaty is applicable, all prohibitions related to trade with Iraq and the provi- under the conditions laid down in that Treaty. sion of financial or economic resources to Iraq should no longer apply. (9) In order to create maximum legal certainty within the (3) With the exception of a ban on exports of arms and Community, the names and other relevant data relating related materiel to Iraq, the Resolution provides that the to natural or legal persons, groups or entities identified comprehensive restrictions concerning trade should be by the UN authorities whose funds and economic repealed and replaced with specific restrictions applying resources are to be frozen, should be published and a to proceeds from all export sales of petroleum, petro- procedure established within the Community to amend leum products, and natural gas from Iraq, and to trade these lists. in goods belonging to Iraq's cultural heritage with the objective of facilitating the safe return of those goods. (4) The Resolution also states that certain funds and (10) For reasons of expediency, the Commission should be economic resources, in particular those belonging to empowered to amend the Annexes to this Regulation former Iraqi President Saddam Hussein and senior offi- setting out the list of cultural goods, the lists of persons, cials of his regime, should be frozen, subject to designa- bodies and entities, whose funds and economic resources tion by the Committee of the Security Council estab- are to be frozen, and the list of competent authorities. lished pursuant to paragraph 6 of Resolution 661 (1990), and that such funds should subsequently be transferred to the Development Fund for Iraq. (11) The competent authorities of the Member States should, where necessary, be empowered to ensure compliance (5) In order to allow the Member States to effect the transfer with the provisions of this Regulation. of frozen funds, economic resources and proceeds of economic resources to the Development Fund for Iraq, provision should be made for such funds and economic resources to be unfrozen. (12) The Commission and Member States should inform each other of the measures taken under this Regulation and of other relevant information at their disposal in connec- (1) See page 72 of this Official Journal. (2) OJ L 337, 27.12.1996, p. 1. Regulation as last amended by tion with this Regulation, and should cooperate with the Commission Regulation (EC) No 208/2003 (OJ L 28, 4.2.2003, p. Committee established by UNSC Resolution 661 (1990), 26). in particular by supplying it with information. 8.7.2003 EN Official Journal of the European Union L 169/7 (13) Member States should lay down rules on sanctions tion, ownership, possession, character, destination or other applicable to infringements of the provisions of this change that would enable the use of the funds, including Regulation and ensure that they are implemented. Those portfolio management; sanctions should be effective, proportionate and dissua- sive. 5. ‘freezing of economic resources’ means preventing their use to obtain funds, goods or services in any way, including, but (14) Since the comprehensive trade measures of Regulation not limited to, by selling, hiring or mortgaging them; (EC) No 2465/96 are being replaced by the specific trade 6. ‘Development Fund for Iraq’ means the Development Fund restrictions of this Regulation, and this Regulation for Iraq held by the Central Bank of Iraq. imposes freezing measures which require immediate application by economic operators, it is necessary to ensure that sanctions for breaches of this Regulation can be imposed as soon as it enters into force. Article 2 (15) For the sake of clarity, Regulation (EC) No 2465/96 All proceeds from all export sales of petroleum, petroleum should be repealed in its entirety. products, and natural gas from Iraq, as listed in Annex I, as of 22 May 2003 shall be deposited into the Development Fund (16) Council Regulation (EEC) No 3541/92 of 7 December for Iraq under the conditions set out in UNSC Resolution 1483 1992 prohibiting the satisfying of Iraqi claims with (2003) and in particular paragraphs 20 and 21 thereof, until regard to contracts and transactions, the performance of such time as an internationally recognized, representative which was affected by United Nations Security Council government of Iraq is properly constituted. Resolution 661 (1990) and related resolutions (1) should remain in force, Article 3 HAS ADOPTED THIS REGULATION: 1. The following shall be prohibited: (a) the import of or the introduction into the territory of the Article 1 Community of, (b) the export of or removal from the territory of the Commu- For the purpose of this Regulation, the following definitions nity of, and shall apply: 1. ‘Sanctions Committee’ means: the Committee of the Security (c) the dealing in, Iraqi cultural property and other items of Council of the United Nations which was established archaeological, historical, cultural, rare scientific and reli- pursuant to paragraph 6 of Resolution 661 (1990); gious importance including those items listed in Annex II, if they have been illegally removed from locations in Iraq, 2. ‘funds’ means financial assets and economic benefits of every in particular, if: kind, including but not limited to: (i) the items form an integral part of either the public (a) cash, cheques, claims on money, drafts, money orders collections listed in the inventories of Iraqi museums, and other payment instruments; archives or libraries' conservation collection, or the (b) deposits with financial institutions or other entities, inventories of Iraqi religious institutions, or balances on accounts, debts and debt obligations; (ii) there exists reasonable suspicion that the goods have (c) publicly- and privately-traded securities and debt instru- been removed from Iraq without the consent of their ments, including stocks and shares, certificates repre- legitimate owner or have been removed in breach of senting securities, bonds, notes, warrants, debentures Iraq's laws and regulations. and derivatives contracts; (d) interest, dividends or other income on or value accruing 2. These prohibitions shall not apply if it is shown that from or generated by assets; either: (e) credit, right of set-off, guarantees, performance bonds or (a) the cultural items were exported from Iraq prior to 6 other financial commitments; August 1990; or (f) letters of credit, bills of lading, bills of sale; (b) the cultural items are being returned to Iraqi institutions in (g) documents evidencing an interest in funds or financial accordance with the objective of safe return as set out in resources, paragraph 7 of UNSC Resolution 1483 (2003). (h) any other instrument of export-financing; 3. ‘economic resources’ means assets of every kind, whether tangible or intangible, movable or immovable, which are Article 4 not funds but can be used to obtain funds, goods or services; 1. All funds and economic resources located outside Iraq on or after 22 May 2003 of the previous Government of Iraq, or 4. ‘freezing of funds’ means preventing any move, transfer, of any of the public bodies, corporations, including companies alteration, use of or dealing with funds in any way that established under private law in which the public
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