The European Commission has published Frequently Asked Questions (FAQ) on the application of Article 5b(2) of Council Regulation (EU) No 833/2014, as amended under the 19th sanctions package, addressing restrictions on the provision of certain payment services to Russian persons. In particular, the European Commission has clarified as follows:
- The restrictions are targeted in nature and apply exclusively to specific categories of services, namely: the issuing of payment instruments (including bank cards), acquiring of payment transactions, payment initiation services, crypto-asset services, and the issuance of electronic money. The prohibition extends to both direct and indirect provision of such services, including through intermediaries and structures used to circumvent sanctions.
- The measures apply to Russian nationals, individuals residing in Russia, and legal persons established in Russia. At the same time, they do not extend to EU, EEA or Swiss nationals, nor to individuals holding a valid residence permit in those jurisdictions. Non-Russian entities are not automatically subject to the restrictions solely by virtue of Russian ownership or control, in the absence of any circumvention element.
- Payment service providers are not required to close accounts or terminate client relationships as such; however, they must ensure the immediate cessation of any prohibited services, including in respect of existing clients. The continued use of previously issued payment instruments is generally permitted, whereas the issuance, renewal or replacement of such instruments is prohibited. Any grounds for exemption must remain valid throughout the entire duration of the relevant service.
It should be noted that the restrictions do not extend to basic banking operations, including transfers, cash withdrawals and access to online banking services.
The guidance reflects an increasing complexity of the sanctions framework and underscores the need for market participants to conduct a more granular assessment of their service offerings and associated compliance risks.