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Economic Sanctions

Dáil Éireann Debate, Tuesday - 26 April 2022

Tuesday, 26 April 2022

Questions (763, 764, 765)

Gerald Nash

Question:

763. Deputy Ged Nash asked the Minister for Foreign Affairs the number of notifications of frozen funds received to date from the Central Bank of Ireland in the context of the EU sanctions scheme targeted at Russia and Russian interests since the inception of the current sanctions regime; if he will identify and publish the names of the individuals and entities who have had funds related to their Irish-registered or managed vehicles frozen in the context of the sanctions regime; the total value of the funds which have been frozen to date; and if he will make a statement on the matter. [20439/22]

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Gerald Nash

Question:

764. Deputy Ged Nash asked the Minister for Foreign Affairs the number of derogation applications received by the Irish authorities to date in respect of Russian nationals or Russian-linked entities who have had funds frozen as a consequence of the EU sanctions regime against Russia; and if he will make a statement on the matter. [20440/22]

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Gerald Nash

Question:

765. Deputy Ged Nash asked the Minister for Foreign Affairs the steps that are being taken to develop a scheme to confiscate the assets of Russian nationals and-or Russian-linked entities that have had assets frozen in Ireland as a consequence of the EU sanctions regime against Russia; and if he will make a statement on the matter. [20441/22]

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Written answers

I propose to take Questions Nos. 763 to 765, inclusive, together.

The EU has introduced unprecedented sanctions in response to the situation in Ukraine. These sanctions are only effective in so far as they are properly implemented. Ireland, along with EU partners, is working to ensure that EU sanctions are fully implemented and enforced, including through full and effective application of the asset freezes and prohibitions on making funds available to those individuals and entities included on the Ukraine-related sanctions list. 

Financial institutions report funds frozen under EU sanctions to the Central Bank of Ireland, and details are in turn notified to the European Commission. The total value of funds frozen to 22 April is approximately EUR 1.2 billion. It is expected that more notifications will be received as financial institutions complete due diligence procedures, and to reflect ongoing additions to the sanctions list. Given its confidential nature, the Department is not in a position to provide more detailed information on the frozen funds.  

The three national competent authorities for sanctions in Ireland are the Department of Foreign Affairs, the Department of Enterprise, Trade and Employment, and the Central Bank of Ireland. The competent authorities are empowered to issue authorisations to derogate from EU sanctions regimes, where this is provided for in the relevant EU legal acts. 

EU sanctions regimes normally include provisions to allow listed individuals and entities to apply for derogations to sanctions in very specific circumstances, such as to satisfy basic needs such as payments for food, rent or medical treatment, or to pay legal fees or bank fees.

To date, the Department of Foreign Affairs has received an application from one entity for an authorisation under 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, as amended. The Department is not in a position to provide any further details on this authorisation request. The Department understands that the other competent authorities have also received applications for authorisations. 

EU sanctions require that the assets of listed individuals and entities be frozen, so that the sanctioned individual or entity cannot benefit from them economically. This is a fundamental principle of sanctions, which are temporary measures that aim to incentivise changes in behaviour or policy and which are not intended to be punitive. However, some Member States have proposed that assets frozen in the context of the situation in Ukraine could be seized, and used for purposes including the rebuilding of Ukraine. I have expressed openness to this proposal. However, it requires extensive further discussion in order to ensure a robust and clear legal basis, as it would be a departure from current practice. 

In March 2022, the European Commission created the ‘Freeze and Seize’ Task Force, to ensure coordination among Member States on the implementation of sanctions related to Ukraine. A particular focus of the Task Force is the identification and freezing of assets belonging to Russian and Belarussian oligarchs in the EU. The Task Force is also considering the interplay between sanctions and criminal law measures, with a view to possibly seizing the assets of those included in the sanctions list where their activities may also breach criminal law. As Ireland’s participation in the Task Force is led by the Department of Justice, that Department would be better placed to provide more information on its work. 

Question No. 764 answered with Question No. 763.
Question No. 765 answered with Question No. 763.
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