Executive Summary of Japanese Sanctions and Export Control Restrictions Against Russia Announced | Hogan Lovells

Japan sanctions regime

Japan has a dual sanctions regime consisting of sanctions measures imposed by the UN, as well as stand-alone Japanese sanctions imposed by the Japanese government as part of its foreign policy.

According to the statement of Prime Minister Kishida and Foreign Secretary Hayashi on February 25, 2022, Japan will take the following additional measures:

  • suspend the issuance of entry visas to Japan for Designated Persons Related to Russia and freeze assets held by Designated Persons and Entities Related to Russia in Japan;
  • freezing the assets of three Russian banks (VEB.RF, Promsvyazbank, Bank Rossiya) in Japan; and
  • to impose sanctions on exports to Russian entities linked to the military, on exports of controlled items on the internationally agreed list and other dual-use goods such as semiconductors.

Although Japan does not have a law dedicated only to sanctions, as is the case in other countries, it has implemented trade control initiatives from a security perspective within the framework of the law. on Foreign Exchange and Foreign Trade (Law No. 228 of December 1, 1949, Law “Act”). Economic sanctions based on export controls and other measures are mainly implemented under this law.

A joint announcement was made the following day by the Ministry of Foreign Affairs, the Ministry of Finance and the Ministry of Economy, Trade and Industry (METI) on the details of the measures to be taken under the law. A summary is given in sections 2 and 3 below.

Economic sanctions

According to the aforementioned joint announcement, in view of the current international situation in Ukraine, and in order to maintain international peace and security and contribute to international international peace efforts aimed at resolving this issue, the Council of Ministers agreed on the following measures, based on the content of measures recently taken by other major countries (as of February 26, 2022):

  • Bans on the issuance and circulation of new securities by the Government of the Russian Federation and other government agencies of the Russian Federation;
  • Prohibitions on issuance of securities by specified banks in Japan; and
  • Bans on the export of items subject to the international export control regime to the Russian Federation.

Based on this, the following measures under the Foreign Exchange and Foreign Trade Law will be implemented.

Freeze of assets and other measures
  • In accordance with a notice issued by the Ministry of Foreign Affairs of Japan on February 26, action has been taken against 24 individuals (see below) identified as persons associated with the “Donetsk People’s Republic” (self-proclaimed ) and the (self-proclaimed) “People’s Republic of Luhansk Republic” (hereinafter referred to as the “two republics“).
  • Payment Restrictions: Payments, etc. to persons designated by the notification of the Ministry of Foreign Affairs will be subject to the authorization granted by the Ministry of Foreign Affairs.
Restrictions on capital transactions
  • Capital transactions (deposit agreements, trust agreements and money lending agreements) with persons designated by the Ministry of Foreign Affairs will be subject to approval.
  • Note: Measures such as freezing the assets of organizations designated as an organization of the Russian Federation will be implemented from March 28, 2022.
Persons subject to the asset freeze (persons deemed to be linked to the two Republics)

name

Title

Vladimir BIDYOVKA

a.

Self-proclaimed “Chairman of the People’s Council of the Donetsk People’s Republic”

Olga MAKEEVA

b.

Self-proclaimed “Deputy Chairman of the People’s Council of the Donetsk People’s Republic”

Alexander ANANCHENKO

vs.

Self-proclaimed “Prime Minister of the Donetsk People’s Republic”

Vladimir ANTONON

D.

Self-proclaimed “Deputy Prime Minister of the Donetsk People’s Republic”

Tatiana PEREVEKZECA

e.

Self-proclaimed “Deputy Prime Minister of the Donetsk People’s Republic”

Aleksei PIKIY

f.

Self-proclaimed “Minister of Interior of the Donetsk People’s Republic”

Vladimir PAVLENKO

g.

Self-proclaimed “Minister of State Security of the Donetsk People’s Republic”

Natalia NIKOROVA

h.

Self-proclaimed “Minister of Foreign Affairs of the Donetsk People’s Republic”

Igor ANTIPOV

I.

Self-proclaimed “Minister of Information of the Donetsk People’s Republic”

Alexei KOSTROBITSKY

J.

Self-proclaimed “Minister of Civil Defence, Emergency Relief and Disaster Relief of the Donetsk People’s Republic”

Youri SIROVATKO

k.

Self-proclaimed “Minister of Justice of the Donetsk People’s Republic”

Leonid PASECHNIK

chopped.

Self-proclaimed “Head of the Lugansk People’s Republic”

Denis MIROSHNICHENKO

all.

Self-proclaimed “Chairman of the People’s Council of the Luhansk People’s Republic”

Dmitri KHOROSHILOV

nm

Self-proclaimed “First Deputy Chairman of the People’s Council of the Lugansk People’s Republic”

Andrei SOPELNIK

Self-proclaimed “Vice-Chairman of the People’s Council of the Lugansk People’s Republic”

Oleg KOVAL

p.

Self-proclaimed “Vice-Chairman of the People’s Council of the Lugansk People’s Republic”

Sergei KOZLOV

Q.

Self-proclaimed “Prime Minister of the Luhansk People’s Republic”

Youri GOVTVIN

r.

Self-proclaimed “First Deputy Prime Minister of the Luhansk People’s Republic”

Elena KOSTENKO

s.

Self-proclaimed “Deputy Prime Minister of the Lugansk People’s Republic”

Anna TODOROVA

t.

Self-proclaimed “Deputy Prime Minister of the Luhansk People’s Republic”

Igor CORNET

you.

Self-proclaimed “Minister of Interior of the Luhansk People’s Republic”

Evgenii KATCAVALOV

v.

Self-proclaimed “Minister of Civil Defence, Emergency Relief and Disaster Relief of the Lugansk People’s Republic”

Zaur ISMAILOV

w.

Self-proclaimed “Minister of Justice of the Luhansk People’s Republic”

Anatolii ANTONOV

X.

Self-proclaimed “Minister of State Security of the Luhansk People’s Republic”

Russian Federation entities subject to an asset freeze

Address: 2 Rastrelli Square, Litera, St. Petersburg. 191124, Russian Federation

Measures to prohibit the government of the Russian Federation from issuing and circulating new securities in Japan
  • Restrictions on the issue and offer of securities
    • The issuance or underwriting of new securities in Japan by the Government of the Russian Federation and other government agencies, etc. (hereinafter referred to as “Government of the Russian Federation“) designated by the Notification of the Ministry of Foreign Affairs (promulgated on February 26, 2022) must now have an authorization from the Ministry of Foreign Affairs.
  • Regulations on the acquisition or transfer of securities
    • The acquisition by a resident of Japan of securities newly issued by the government of the Russian Federation, etc. from a non-resident or the transfer to a non-resident of securities newly issued by the government of the Russian Federation, etc. need a permit from the Ministry of Foreign Affairs.
  • Regulation of service transactions
    • The provision of labor or benefits by a resident of Japan for the purpose of issuing or offering new titles in Japan by the Government of the Russian Federation is subject to a licensing system.
Measures to prohibit certain banks of the Russian Federation from issuing securities in Japan
  • As for certain banks in the Russian Federation which are prohibited from issuing securities in Japan, securities with a shorter maturity (more than 30 days) will be subject to this prohibition.
Government of the Russian Federation or other government bodies subject to a ban on the issue or offer of securities
  • Government of the Russian Federation
  • Government bodies of the Russian Federation
  • Central Bank of the Russian Federation

Address: 12 Neglinnaya Str., Moscow, 107016, Russian Federation

Export controls

Here are the enhanced regulations under the Foreign Exchange and Foreign Trade Act and the Export Control Ordinance.

Prohibition of import and export to and from the two Republics
  • Measures will be introduced to prohibit the import and export of goods from and to Ukraine (limited to cases where the origin and destination are the (self-declared) “Donetsk People’s Republic” or the “People’s Republic People’s Republic of Lugansk” (self-proclaimed)) .
Measures concerning the ban on the export to the Russian Federation of items subject to the international export control regime
  • With regard to the export to the Russian Federation of the supply of services and items subject to the international export control regime, examination procedures will be further strengthened and measures will be introduced to prohibit such exports.
  • The new tightening of examination procedures, which will come into force on March 5, 2022, means in concrete terms that:
    • the export of goods and the supply of technology to Russia, which were previously subject to a general license, will no longer be subject to a general license, but will require a license on a case-by-case basis;
    • the documents to be submitted will be modified; and
    • the Ministry of Foreign Affairs will be the place to submit them.

Next steps

We expect that this first round of sanctions will likely be extended in the near future and so it would be prudent for anyone engaged in trade near Russia and Ukraine to continue to monitor developments. and verify the legality of their existing sales transactions. , as the focus and territorial scope of Japanese (and global) sanctions continue to expand.

In today’s rapidly changing landscape, keeping abreast of international sanctions regimes is more difficult than ever. Our comprehensive sanctions navigator brings together the sanctions regimes of the European Union, France, the United Kingdom, the United Nations and the United States in one place, to help our customers answer any questions or resolve any sanction-related issues they may have. Explore the Sanctions Navigator here.

Comments are closed.