Russians will be restricted from using European trusts and accessing the services of related service providers

On April 8, the EU Council amended Resolution No. 833/2014, thereby expanding restrictive measures against Russian citizens.

According to the new rules, from May 10, 2022, in relation to a trust or a similar trust management agreement, the following will be prohibited:

• Institution;
• Provision of a registered office and address;
• Provision of management services;
• Provision of services of a shareholder, director, secretary.

The ban will apply if the founder/beneficiary of a trust or similar agreement is:

• Citizens of the Russian Federation;
• Persons residing in the Russian Federation;
• Russian legal entities or their bodies;
• Legal entities, 50% of which belong to Russian citizens / persons residing in the Russian Federation or Russian legal entities;
• Legal entities and organizations controlled by the persons listed above;
• Persons acting on behalf of or at the direction of the above-mentioned persons.

Thus, from May 10, trusts and other persons providing services for the management of trusts and other similar structures will be required to terminate all relationships with persons with ties to Russia.

At the same time, the ban will not apply to managers or beneficiaries who have citizenship or residence permit / permanent residence in an EU state.