I move:
That Dáil Éireann approves the exercise by the State of the option or discretion under Protocol No. 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, to take part in the adoption and application of the following proposed measure:
Proposal for a Council Decision on adding the violation of Union restrictive measures to the areas of crime laid down in Article 83(1) of the Treaty on the Functioning of the European Union,
a copy of which was laid before Dáil Éireann on 20th June, 2022.
I thank the House for facilitating the taking of this motion today. On 21 June, the Government approved the request of the Minister for Justice, Deputy McEntee, to seek the approval of the two Houses of the Oireachtas to opt in to this European Commission proposal which relates to the violation of EU restrictive measures, more commonly known as sanctions. At present, different EU member states have different ways of dealing with sanctions breaches. In Ireland and many other member states, sanctions violations are a criminal offence, but in some member states this is dealt with administratively. The Commission is seeking to develop a common approach at EU level to sanctions breaches, and the adoption of a decision to extend the list of EU crimes would be a first step to creating the legal basis necessary for this. While Russian aggression towards Ukraine is ongoing, it is paramount that EU restrictive measures are fully and consistently implemented. There must be consequences for the violation of EU sanctions. The ongoing situation in Ukraine makes this proposal an urgent one.
Currently, the list of EU crimes covers terrorism, trafficking in human beings and sexual exploitation of women and children, illicit drug trafficking, illicit arms trafficking, money laundering, corruption, counterfeiting of means of payment, computer crime, and organised crime.
In response to developments related to crime, the Council may adopt a decision identifying other areas of criminality that meet the criteria specified in Article 83(1) of the Treaty on the Functioning of the European Union, the TFEU. The test under Article 83 asks whether the matter is a particularly serious crime and whether a cross-border dimension results from the nature or impact of these offences or from a special need to combat them on a common basis. The Commission deems that the violation of restrictive measures meets the criteria for an EU crime set out in this Article. This is already a crime in a majority of member states. It is also an especially serious crime since it may perpetuate threats to international peace and security and has a clear cross-border context that requires a uniform response at EU level and global level.
The legal basis of this proposal is Article 85 of the TFEU. The views of the Office of the Attorney General were sought and the legal advice received has confirmed that as this is a measure under Title V of the treaty, Protocol No. 21 applies and Oireachtas approval under Article 29.4.7° of the Constitution is required for Ireland to opt into the measure. The Office of the Attorney General has advised that opting in to the proposed decision does not create any constitutional or legal issue for the State. Bringing the proposal to the Houses within weeks of its publication is a more expedited process than usual in terms of the speed of adoption under Protocol No. 21. However, I am sure colleagues will agree it is important Ireland stands alongside all other member states in supporting the Union's enhancement of its sanctions regime in the current climate.
It is important to state this proposal is not concerned with the substance of the sanctions themselves. It is concerned with the violation of sanctions and with enabling a directive to harmonise penalties for breaches, which will be brought forward separately. The House will also wish to note that departmental officials are considering a separate but somewhat related EU proposal regarding a new directive on asset recovery and confiscation. This new directive will include measures to strengthen enforcement in relation to EU sanctions.
Once sanctions violation is made an EU crime, the Commission will be able to propose a directive on it that would harmonise how it is defined and penalised in criminal law throughout EU member states. The criminal offences to be approximated by the directive would include precise definitions of various criminal offences related to violations of Union restrictive measures. These offences could include making funds available directly or indirectly to, or for the benefit of, a designated person or entity, failing to freeze funds or economic resources belonging to, owned, held or controlled by a designated person or entity, and engaging in prohibited financial activities, trade, commercial or other activities. They could also include breaching applicable conditions under authorisations granted by competent authorities or a failure to comply with any obligation to provide information to the authorities. The offences could also include engaging in activities that seek to circumvent directly or indirectly the restrictive measures with knowledge and intent, including by being involved in schemes designed to conceal the assets or involvement of designated persons or entities by assisting the targets or restrictive measures to evade their impact. They could also include providing misleading information to authorities and not reporting a violation of restrictive measures or activities that seek to circumvent them in violation of a specific obligation to report.
Opting into this proposal to make sanctions violations an EU crime does not bind Ireland to participate in the eventual directive to harmonise how sanctions breaches are dealt with. There will be a separate opt-in process for that proposal. It will be analysed and negotiated in detail when the time comes. Making sanctions violations an EU crime is simply the first step in the process.
Of course, this is not the only action under way at EU level to strengthen the EU's response to Russian aggression towards Ukraine. The EU has imposed the most significant sanctions in its history in response to the situation in Ukraine. These have taken the form of six packages from 23 February 2022 to date. The six sanctions packages are made up of individual measures targeting persons and entities and sectoral measures targeting specific economic sectors or industries. Individual sanctions now apply to a total of 1,158 individuals and 98 entities in Russia and Belarus. Sectoral sanctions target the financial, energy, technology, defence and transport sectors and Russian media involved in propaganda. The sale of EU luxury goods to Russia is prohibited, as is the import from Russia and Belarus of certain products. Restrictions have also been introduced on economic relations between the EU and the breakaway regions of Donetsk and Luhansk. These sanctions aim to incentivise a change in behaviour in Moscow. They impose clear economic and political costs on the individuals and entities responsible for the invasion or benefiting from it. They also deprive Russia of the means and capabilities to wage this unjust war.
In designing its successive sanctions packages, the EU has recognised the need to ensure specific measures have a greater impact on Russia than on EU member states and are sustainable. There is broad support at EU level to continue to examine options for further sanctions measures. Ireland has been consistent in advocating for a maximalist approach to sanctions since the start of the war. Ireland will support the widest possible measures, including sanctions on Russian gas, building on the ban on oil introduced in the sixth package.
I am proud that Ireland is playing its strong part in the EU-wide response to Russia's actions. Supporting this proposal is another demonstration that Ireland stands in solidarity with our EU colleagues in putting in place measures that robustly respond to such aggression. The Government has no hesitation in commending the motion to the House.