Implementation of Restrictive Measures

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Sanctions are restrictive measures that can be taken against third-country governments, individuals, legal entities, or groups to induce a change in policy (domestic or foreign) or activities by the designated states or individuals.

The United Nations Security Council adopts sanctions applicable in Luxembourg, based on Chapter VII and Article 41 of the UN Charter, or at the European Union level, as part of its Common Foreign and Security Policy (CFSP).

Sanctions adopted by the United Nations and the Council of the European Union are both implemented at EU level. European regulations are directly applicable in each Member State without transposition into national law. Nevertheless, it is the responsibility of each Member State to adopt the necessary implementing measures, particularly in areas where the EU is not competent, and to determine the administrative and criminal penalties applicable to violations of restrictive measures.

Sanctions may take the form of arms embargoes, specific or general trade restrictions (such as import and export bans), financial restrictions, restrictions on the provision of financial services, admission restrictions, or other sectoral measures.

The Directorate for European Affairs and International Economic Relations of the Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade is responsible for the overall coordination of international sanctions in Luxembourg.

The Ministry communicates with UN sanctions committees to ensure the transmission of information for the purpose of identifying individuals and entities on UN sanctions lists. Information relevant to EU sanctions is also channeled through the MFA.

The Control office for exports, imports and transit (OCEIT) of the Ministry is the competent authority for issuing authorizations for transactions such as the export, transfer, transit, technical assistance, brokerage, and import of defense-related products, dual-use goods, and torture-related goods. It also grants exceptional authorizations for goods of a strictly civilian nature within the framework of commercial restrictive measures. It implements EU commercial restrictive measures related to these goods against certain states, political regimes, individuals, entities, and groups. Additionally, the Political Affairs Directorate of the Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade has co-decision power concerning export licenses for dual-use goods and defense-related products.

More information about the role and contact details of OCEIT can be found on this website. OCEIT regularly publishes a newsletter containing the latest updates on commercial sanctions, which can be subscribed to.

The Ministry of Finance is responsible for handling all matters relating to (i) the implementation of financial sanctions for both those targeted by these measures and those obliged to enforce them.

Competent authorities may, in exceptional cases, grant derogatory authorizations from the imposed prohibitions and restrictive measures, provided UN resolutions permit this, EU acts, and the national legal framework, and in accordance with the conditions set forth therein.

More information about the role and contact details of the Ministry of Finance is available on this website. The Ministry of Finance also publishes a newsletter with updates on international sanctions, which can be subscribed to.

News

In response to Russia's war of aggression against Ukraine, the European Union has adopted multiple successive packages of restrictive measures. These new measures complement those previously taken in response to Russia's actions destabilizing the situation in Ukraine and following the illegal annexation of Crimea in 2014.

These measures include targeted individual sanctions and extensive sectoral, commercial and financial restrictions.

To assist operators in implementing restrictive measures, tools are available to guide them through the process.

Useful Links

Whistleblower Tool

The European Commission provides a whistleblower tool designed to facilitate the reporting of possible sanctions violations. This is a secure online platform that enables whistleblowers to anonymously report past, ongoing, or planned violations of EU sanctions.

Contact

Any information requests addressed to the Directorate for European Affairs and International Economic Relations of the Ministry can be sent to: sanctions@mae.etat.lu.