EU Updates Russia Sanctions Guidance on Provision of Business, Legal Services

The EU released updated guidance on the provision of business services under its Russia sanctions regime, adding an overview table of the EU restrictions on services. The European Commission added five questions to its FAQs about business services, covering how the sectoral scope for IT consultancy services is defined, whether the measures on IT consultancy services hamper the conditions of civil society organization in Russia, which software updates are exempted from the ban on IT consultancy services, what activities are covered on the architectural and engineering services ban and what activities are covered by the ban on legal advisory services.

The commission updated the FAQ about the provision of legal services. The guidance updated the definition of "legal advisory services," which includes "the provision of legal advice to customers in non-contentious matters, including commercial transactions, involving the application or interpretation of law; participation with or on behalf of clients in commercial transactions, negotiations and other dealings with third parties; and preparation, execution and verification of legal documents."

The commission also clarified that a European Council regulation excludes from this ban the provision of the following services that are "strictly necessary": "for the termination by 8 January 2023 of contracts which are not compliant with this Article concluded before 7 October 2022, or of ancillary contracts necessary for the execution of such contracts; for the exercise of the right of defence in judicial proceedings and the right to an effective legal remedy; or to ensure access to judicial, administrative or arbitral proceedings in a Member State, or for the recognition or enforcement of a judgment or an arbitration award rendered in a Member State."