Japan's Sanctions Related to the Situation in Ukraine

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Authored by our Global Sanctions Team

On 26 February 2022, Japan's Ministry of Foreign Affairs of Japan ("MOFA"), Ministry of Finance ("MOF") and Ministry of Economy, Trade and Industry ("METI") jointly announced "Measures Related to the Situation in Ukraine under the Foreign Exchange and Foreign Trade Act" ("Statement"). The full Statement in Japanese is available here.

 

Measures

Japan has implemented the following sanctions and measures related to the Donetsk Republic and Luhansk Republic ("Covered Regions"):

  • Freezing of assets:
    • Restriction on payment: Permission is required for payments to 24 individuals1 related to the Donetsk Republic and Luhansk Republic and Bank Rossiya2 designated by the MOFA Notice ("Designated Persons"). Payments requiring permission include (i) payment from Japan by a Japan Resident3 or Non-Japan Resident4 to any Designated Persons and (ii) payment from anywhere by a Japan Resident to any Designated Persons.
    • Restriction on capital transactions: Permission is required for capital transactions (i.e., contract of deposit, trust, and money loan) by a Japan Resident with the Designated Persons.
  • Restriction on export and import:
    • Approval is required for export of all goods to and import of all goods originating in the Covered Regions.

Japan also has implemented the following measures related to Russia:

  • Restriction on the issuance and transactions for new Russian sovereign debt:
    • Restriction on the issuance and offering: Permission is required for the issuance and offering in Japan of Russian sovereign debt by Government of the Russian Federations, Government Agencies of the Russian Federation and the Central Bank of the Russian Federation (collectively the "Russian Government").
    • Restriction on acquisition and transaction: Permission is required for the acquisition by a Japan Resident of new Russian sovereign debt (issued on and after February 26 2022) from a Non-Japan Resident, or the transfer of the same to a Non-Japan Resident.
    • Restriction on service and transactions: Permission is required for the provision of services and benefits by a Japan Resident undertaken for the purposes of the issuance or offering for subscription of new Russian sovereign debt in Japan.
  • Restriction on the issuances of securities by Designated Russian Banks (as defined below) in Japan:
    • Permission is required for the issuance or offering for subscription of securities (limited only to securities of debt maturity longer than 30 days) issued in Japan by Sberbank, VTB Bank, Bank for Development and Foreign Economic Affairs (Vnesheconombank), Gazprombank and Russian Agricultural Bank (collectively "Designated Russian Banks").
    • Permission is required for provision of services and benefits by a Japan Resident undertaken for the purposes of issuance or offering for subscription of securities (limited only to securities of debt maturity longer than 30 days) issued by the Designated Russian Banks.
  • Tightening of export control of items and relevant services subject to Multilateral Export Control Regimes to Russia:
    • Examination procedures for exports of items and relevant services subject to Multilateral Export Control Regimes to Russia have been tightened by removing license exemptions for Russia.

 

The list designated individuals as of February 26 2020 are available here.
2 Effective from March 28, 2022
3 A person with a domicile or residence in Japan or a corporation with a principal office in Japan.  A non-Japanese corporation’s branch office, local office, or other office located in Japan are deemed to be a resident even if its principal office is located outside of Japan.
4 A person or corporation other than a resident.

 

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© 2022 White & Case LLP

 

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