“The proposal follows guidelines developed by the Extractive Industry Transparency Initiative (EITI) and requires all extractive and forestry industry companies listed on EU exchanges to report payments made to governments and local authorities in each country and for each project. Importantly, large unlisted companies registered in the EU also are required to comply. The extractive industry consists of all companies with activities involving the exploration, discovery, development and extraction of minerals, oil and natural gas deposits, while the forestry industry covers companies with activities involving the clear-cutting, selective logging or thinning of primary forests.

Companies in these industries will need to report taxes, royalties, signature bonuses, licenses, concessions, leases, and any other payments made to government and local authorities in the countries where the companies operate. ‘Other payments’ subject to reporting requirements may include rental fees, transit fees, and dividends. This level of disclosure is required for each project the company has undertaken in each country. The threshold for the disclosure of payments related to each project is set at €100,000 (approximately $130,000).”

“For Burma/Myanmar, the Council has decided to lift all economic sanctions, while keeping the existing arms embargo in place for one more year. For Syria, the Council has eased certain EU sanctions measures, including the oil embargo, by allowing Member State authorisation (following consultation of the Syrian opposition) of certain types of transactions with the aim of helping civilians and supporting the opposition.

For North Korea, the EU has introduced amendments to reflect newly adopted UN sanctions measures, including the addition of parties to the UN list of designated persons and entities subject to an asset freeze. Finally, with respect to Libya, the EU Council has decided to delist one person whose assets have been frozen and to allow assistance to the Libyan government for security/disarmament reasons.”

“The European Commission (EC) Directorate-General for Trade has issued a consultation to solicit interested parties’ views on a potential EU initiative for responsible sourcing of minerals coming from conflict-affected and high-risk areas. This ‘conflict minerals’ consultation seeks information from EU zone companies that would help the EC decide whether to ‘complement’ the U.S. conflict minerals due diligence regime passed as part of the Dodd-Frank Act and recently instituted by the Securities and Exchange Commission… 

Similarly, a proposed Canadian ‘Conflict Minerals Act’ would impose due diligence and disclosure requirements similar to those in the U.S. on Canadian companies that use ‘designated minerals’ (including tantalum, tin, tungsten, or gold) originating in the Great Lakes Region of Africa. It is noteworthy that the Canadian proposal would extend disclosure obligations to cover the extraction, processing, purchasing, or trading of conflict minerals, roles that are exempted in some cases from the SEC’s rules.”

“Large non-listed companies incorporated in the European Economic Area which operate in the oil, gas and mining sectors will need to annually disclose any payments made to the national, regional or local authority of a host country on a country and project basis where the payment is above a threshold of EUR 100,000 (c. GBP 85,000 / USD 131,000). Sanctions for failure to comply are likely to be punitive.

The payments to be disclosed will include taxes on profits, royalties, dividends, bonuses, licence fees and other direct benefits to the government concerned, amongst others. There will be no exemption to the disclosure requirements, even if the disclosure is not permitted by the host country’s criminal law.”

“On 6 March 2013, the Commission opened an in-depth investigation, the first of its kind, into the public funding of five professional football clubs in the Netherlands.  It has doubts as to the compliance with EU State aid rules of a number of measures taken by five municipalities in the Netherlands in favour of their respective professional football clubs.  The Commission also confirmed that it is looking at measures in other EU Member States, suggesting that professional football clubs in other countries will also be subject to investigations…

Since the underlying legal and economic concepts of the Commission’s probe into the financing of football clubs are not limited to football, this development may have broad implications for all professional sports clubs in the European Union and for the public authorities financing them.  It is likely that, at a later stage, the Commission will initiate similar investigations into other professional sports, such as ice hockey, basketball and handball.

“For Syria, the Council has renewed its sanctions for a further three months, while introducing certain amendments to the existing arms embargo in the interest of protecting civilians.

For North Korea, the EU has introduced several new sanctions measures – involving trade bans for ballistic missile components, precious metals and diamonds and public bonds, as well as restrictions relating to banknotes and banks – and the list of parties whose assets are frozen has been expanded.

To recognise the significance of certain advances in Zimbabwe, the EU has decided to delist certain persons and entities whose assets are frozen, while at the same time extending the sanctions for another year.”

Latest Iran Sanctions: Need-to-Know from JD Supra

“The net of international sanctions on Iran and entities that do business with the Iranian regime continues to tighten.

For your reference, here’s a roundup of latest commentary and analysis on sanctions imposed by the United States and Europe… 

“Regulation 1263/2012 defines the scope of the broadened restrictions on EU banks’ participation in transactions with Iranian financial institutions. It confirms that as a general rule, fund transfers between banks under EU jurisdiction and Iranian or Iran-related credit and financial institutions and currency exchange offices will be prohibited. Certain exceptions will, however, be provided for, inter alia, transfers relating to foodstuffs, healthcare, medical equipment and agricultural or humanitarian purposes, non-commercial transfers and specific trade contracts, provided that they do not contribute to prohibited activities and have undergone Member State notification or authorization procedures, as required (depending on the amount involved in the transfer)…

The clause allowing the making available of certain funds to the Central Bank of Iran has now been deleted altogether, allowing only the release of its frozen funds (in certain circumstances).”