Section 18B

A person (“P”) must not carry on an activity mentioned in paragraph (2) if P knows, or has reasonable cause to suspect, that P is carrying on such an activity. The activities in this paragraph are— directly acquiring any ownership interest in land located in Russia; indirectly acquiring any ownership interest in land located in Russia for the purpose mentioned in paragraph (3); directly acquiring any ownership interest in or control over a person, other than an individual, connected with Russia; indirectly acquiring any ownership interest in or control over a person, other than an individual, connected with Russia for the purpose mentioned in paragraph (3); directly or indirectly acquiring any ownership interest in or control over a relevant entity for the purpose mentioned in paragraph (3); directly or indirectly establishing any joint venture with a person connected with Russia; opening a representative office or establishing a branch or subsidiary located in Russia; or providing investment services directly related to an activity referred to in sub-paragraphs (a) to (g). The purpose mentioned in paragraph 2(b), (d) and (e) above is making funds or economic resources available— directly or indirectly to a person connected with Russia; or for the benefit of a person connected with Russia. For the purposes of paragraph (3)— economic resources are made available to a person connected with Russia only if that person would be likely to exchange the economic resources for, or use them in exchange for, funds, goods or services; making funds or economic resources indirectly available to a person connected with Russia includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person connected with Russia; and funds or economic resources are made available for the benefit of a person connected with Russia only if that person thereby obtains, or is able to obtain, a significant financial benefit, and “financial benefit” includes the discharge (or partial discharge) of a financial obligation for which the person connected with Russia is wholly or partly responsible. Paragraph (1) is subject to Part 7 (Exceptions and licences). A person who contravenes a prohibition in paragraph (1) commits an offence. In this regulation, the reference to a person (“P”) directly or indirectly acquiring any ownership interest in or control over a person or entity means— P directly or indirectly acquiring any share in the person or entity; P directly or indirectly acquiring any voting rights in the person or entity; P directly or indirectly acquiring any right to appoint or remove a majority of the board of directors of the person or entity; or P directly or indirectly acquiring any means of ensuring that the affairs of the person or entity are conducted in accordance with the wishes of P where it is reasonable, having regard to all of the circumstances, to expect that P would (if P chose to) in most cases or significant respects, by whatever means, be able to do so. In this regulation— “branch” means, in relation to a person other than an individual, a place of business which forms a legally dependent part of that person and which carries out all or some of the transactions inherent in the business of that person; “investment services” has the same meaning as it has in regulation 16 (dealing with transferable securities or money-market instruments); “relevant entity” means a person, other than an individual, which ... is not a person connected with Russia.

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Source: legislation.gov.uk · retrieved 2026-08-30