Tightening of Export Restrictions on Arms and Dual-use Goods for Military Use to the Russian Federation and Prohibitive Measure of Issue of Securities by Designated Russian Federation Banks and their Subsidiaries
September 24, 2014
In view of the current international situation over Ukraine, and in an attempt to maintain international peace and security as well as contribute to the international efforts for achieving international peace aimed at a solution of the issue, in line with the measures taken by other major countries, the Government of Japan has introduced measures under the Foreign Exchange and Foreign Trade Act, to tighten the export restrictions on arms and dual-use goods for military use to the Russian Federation and prohibit issue of securities by designated Russian Federation banks and their subsidiaries.
(1) Contents of the measures
As of September 24, under the Foreign Exchange and Foreign Trade Act, Japan has introduced the measure in relation to the Russian Federation described below as (i) and measures with regard to Russian Federation banks and their subsidiaries designated in a Ministry of Foreign Affairs Notice (issued on September 24) described below as (ii) and (iii).
(i) Export restrictions on arms and dual-use goods for military use
Examination procedures for exports of arms and provision of military technologies as well as for exports of dual-use goods for military use and provision of technologies pertaining to such dual-use goods, that are destined for the Russian Federation will be tightened.
(ii) Restrictions on capital transactions
An permission system will be applied to the issue or offer for subscription of securities in Japan by the organizations designated in the Ministry of Foreign Affairs Notice.
(iii) Restrictions on service transactions
An permission system will be applied to provision of services and benefits undertaken for the purposes of issue or offer for subscription of securities in Japan by the organizations designated in the Ministry of Foreign Affairs Notice.
(Note) the securities mentioned in (ii) and (iii) above are limited to ones with maturity of over 90 days in cases where the securities have a fixed maturity.
(2) The organizations designated relating to (ii) and (iii) above:
Organizations cited in the Appendix and their subsidiaries which are directly owned by an organization in the Appendix for more than 50% of the total number of shares or the total amount of investment (excluding an organization having its principal office in Japan).