General information

International sanctions - a set of restrictions and obligations imposed by the legal acts of the European Union, decisions of the United Nations and other international organisations of which the Republic of Lithuania is a member or in which it participates, and which are directly applicable in the Republic of Lithuania or are implemented in the Republic of Lithuania in accordance with the procedure established by the Law on International Sanctions.

International economic, financial, political, transport, social and other international sanctions imposing restrictions and obligations are implemented in the Republic of Lithuania.

International sanctions are one of the instruments used by the international community or individual states to control strategic goods and combat international terrorism in order to strengthen international and regional security.

International sanctions are imposed by directly applicable European Union regulations and Government of the Republic of Lithuania resolutions, which implement other European Union (EU) legislation, United Nations resolutions, and decisions of the Organisation for Security and Cooperation in Europe (OSCE).

SANCTIONS IN THE NARROW SENSE

Sanctions in the narrow sense require a specific legal basis under the EU Treaties and include:

• arms embargoes;
• entry restrictions (travel bans) on listed persons - those affected cannot enter the EU or, if they are EU nationals, leave the Member State of their nationality;
• asset freezes on assets belonging to listed persons or entities - freezing all their assets in the EU and preventing EU nationals and entities from providing any funds to listed persons or entities;
• economic sanctions or restrictions in specific sectors of economic activity, including bans on imports or exports of certain goods, investment, services, etc.

Sanctioned entity means a state or part thereof, a territory (special status area), a natural or legal person, any other organisation or a group of natural or legal persons and/or organisations, which is subject to international sanctions or restrictive measures imposed by the laws of the Republic of Lithuania.

In Lithuania, all natural and legal persons implement international sanctions independently and are responsible for their proper application, while the restrictive measures imposed by the European Union legislation are directly applicable.

All natural and legal persons engaged in economic activities, financial institutions and other entities or organisations established or operating in the State are obliged to comply with the information published on the website of the Office on the links of natural and/or legal persons with entities subject to international sanctions. The implementation of sanctions imposed by the European Union should also take into account guidelines, best practices and other interpretations issued by the European Union. All information on the implementation of international sanctions is publicly available and is published on the website of European Union law and other public documents of the European Union and on the website of the Office.

Restrictive measures - a set of restrictions and obligations imposed by the laws of the Republic of Lithuania.

COMMONLY USED TERMS IN THE CONTEXT OF EUROPEAN UNION SANCTIONS

Sanctions, also known as restrictive measures, aim to change the policies of, or stop specific actions by, the government, entities or individuals of the country (or part of it) concerned. International sanctions are not based on economic interests but on the principles of international law, democracy and respect for human rights and fundamental freedoms. Sanctions may include the total or partial cessation of economic relations, the restriction of means of communication and diplomatic relations, and other measures. The imposition of sanctions must be based on the principle of proportionality and must be directly targeted at the entities responsible for the policies or specific actions in response to which the international community has been compelled to use the instrument of sanctions.

Economic resources are assets of any kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds or goods or services.

Freezing of economic resources - Prohibition on the use of economic resources to obtain funds, goods or services in any way, including, but not limited to, by sale, lease or pledge.

Funds - financial assets and benefits of all kinds, including but not limited to the following:

a. cash, cheques, drafts, bills of exchange, money orders and other means of payment;

b. deposits with financial institutions or other entities, account balances, debts and liabilities;

c. publicly and privately traded securities and debt instruments, including securities and shares, securities certificates, bonds, notes, certificates for the purchase of shares at a fixed time and at a fixed price, corporate bonds and derivative contracts;

d. interest, dividends or other income from assets or capital gains;

e. loans, rights of set-off, guarantees, performance obligations or other financial commitments;

f. letters of credit, bills of lading, instruments of transfer and

g. documents evidencing ownership of funds or other financial resources.

h. “freezing of funds” means a prohibition on any movement, transfer, alteration, use, access to, or handling of funds by way of a change in their amount, amount, location, ownership, possession, management, characteristics, destination, or any other change that would permit the use of the funds, including the management of an investment portfolio.

More information on sanctions and their implementation can be found in the “FAQ” section of the website of the Financial Crime Investigation Service (https://fntt.lrv.lt/lt/dazniausiai-uzduodami-klausimai/).