Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

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 Directive of the European Parliament and of the Council on the definition of criminal offences and penalties for the violation of Union restrictive measures,

a copy of which was laid before Dáil Éireann on 19th December, 2022.

I thank the Ceann Comhairle and the House for facilitating this motion. On 21 February, the Government approved the request of the Minister for Justice, Deputy Harris, to seek the approval of the two Houses of the Oireachtas to opt in to this European Commission proposal, which relates to the definition of criminal offences and penalties for the violation of Union restrictive measures, which are 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 they are dealt with administratively. The European Commission wants to bring in a common approach at EU level to sanctions breaches and has put forward a proposal that will harmonise criminal offences and penalties for any violations. This proposal sets out common EU rules which will make it easier to investigate, prosecute and punish violations of restrictive measures in all member states alike. While the proposed regime is more broadly based, Russian aggression towards Ukraine is ongoing and adds a greater imperative to ensuring 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 and important one.

Since the start of the war in Ukraine, the EU has adopted a series of sanctions against Russian and Belarusian individuals and companies. Efforts to implement and enforce these sanctions have brought to light the challenges of identifying assets owned by those subject to sanctions who hide their assets across different jurisdictions through complex legal and financial structures. Those who wish to conceal their assets are helped by existing legal loopholes, as the related criminal law provisions vary across member states. The inconsistent enforcement of restrictive measures undermines the EU’s ability to speak with one voice.

The main objectives of this proposal are to ensure that all member states are defining the criminal offences for violating EU sanctions in the same way; to make sure that all member states have effective, dissuasive and proportionate penalties in place for sanctions violations; to foster cross-border investigation and prosecution; and, lastly, to improve the operational effectiveness of investigating, prosecuting and punishing sanctions violations. One of the key elements is defining the kinds of sanctions violations that will now constitute criminal offences. These include making funds available to those subject to sanctions; failing to freeze funds; facilitating entry into or transit through an EU member state; providing certain legal, financial and advisory services which have been prohibited; and trading in goods and services when this has been prohibited. Circumventing an EU restrictive measure will also be made a criminal offence. This includes bypassing or attempting to bypass restrictive measures by concealing funds or concealing who the funds belong to. The proposal also introduces a shared basic standard for penalties so that there will be consistency throughout the EU in how people convicted of sanctions violations are punished.

The legal basis of this proposal is based on Article 83(1) of the Treaty on the Functioning of the European Union. As this is a measure under Title V of the Treaty, Protocol 21 applies and Oireachtas approval under Article 29.4.7° of the Constitution is required for Ireland to opt in to the measure. The view of the Office of the Attorney General was sought and the legal advice received has confirmed that there is no constitutional impediment to Ireland opting in to this directive. Naturally, given the importance of this issue, the Minister's officials will continue to participate actively in the negotiations at working party meetings and engage with other Departments and agencies to ensure the final text of the directive works well for Ireland and the EU as a whole.

While this directive is an important part of the EU’s response to Russian aggression towards Ukraine, it is part of a range of actions under way at EU level. The sanctions adopted in response to Russia's invasion of Ukraine are the most expansive and hard-hitting sanctions in EU history. Ireland has consistently supported the adoption of these measures. With the adoption of a package on 24 February marking the one-year anniversary, EU member states have adopted ten major packages of measures since the invasion. The three aspects of the tenth package are additional listings, sectoral measures and enforcement measures. The package contains approximately 100 new listings of military figures, political institutions, propagandists, additional Russian banks and other supporters of the Kremlin. Iranian, Belarusian and Syrian entities will also be added to the sanctions list.

On the sectoral side, the package includes additional export bans worth more than €11 billion on technology and goods critical to the Russian economy and the war effort, as well as on dual-use and advanced tech goods. The import ban list was also expanded. On enforcement measures, there are now additional reporting requirements, including an obligation on member states to report on any Russian public assets that they hold. This ties into discussions on the possible use of Russian assets to fund the reconstruction of Ukraine.

The impact of the sanctions adopted depends on their full and effective implementation. The new measures to strengthen reporting requirements and tackle circumvention in the tenth package are particularly welcome and the work of the new international special envoy for the implementation of EU sanctions, David O'Sullivan, will also be instrumental in combating the circumvention of EU sanctions by third countries. 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 and to date Irish financial institutions have already frozen almost €1.8 billion of Russian funds. Ireland is playing a 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 this motion to the House.

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