Sanctions (restrictive measures) adopted through legal acts of the European Union (EU), resolutions of the United Nations Security Council, and acts of other international organizations, will now be explicitly regulated in Bulgaria. This regulation is provided for in the bill introduced to the National Assembly on International Restrictive Measures (the "Bill"). The measures were already mandatory for Bulgaria due to the general applicability of the acts adopted at the international/EU level, but there was a lack of precise internal legal framework for their implementation.
The so-called international restrictive measures in practice represent restrictions on rights (sanctions) imposed on certain countries, non-state entities, and natural and legal persons. They aim to change the behaviour of the sanctioned party, when their behaviour is violating international law, human rights, the rule of law, democracy, etc. Such sanctions include trade, business and financial restrictions, including arms embargoes, as well as visa bans and travel limitations.
The scope of the Bill includes only restrictions introduced by acts of the EU, the UN Security Council, and other international organizations of which Bulgaria is a member. The Bill does not apply to sanctions under the Magnitsky Act.
The international restrictive measures are mandatory for Bulgarian nationals, foreigners residing in the country, legal entities with a seat and management address in Bulgaria, foreign legal entities operating in the country, not personified entities such as partnerships under the Obligations and Contracts Act and consortiums, as well as state and municipality authorities. Further, individuals are required to provide information to the competent authorities for the effective implementation of the sanctions.
The institutions competent under the Bill are explicitly listed and include ministers, agencies, commissions, etc., including the Bulgarian National Bank. Their powers to control the implementation of the restrictive measures are distributed in view of the nature of the respective sanction. Along with these, a specific body, the Interdepartmental Council for the Application of Restrictive Measures ("Interdepartmental Council"), will be created under the Council of Ministers, assigned to perform general coordination and supervision with respect to the implementation of the restrictive measures. The Interdepartmental Council will develop proposals for notifying competent European and international institutions regarding circumstances related to the implementation of the measures.
For the successful application of the restrictions securitization measures may be imposed pursuant to the Tax-Insurance Procedure Code at the initiative of the competent public authorities, including the Interdepartmental Council. These measures are attachments or foreclosures over material funds and assets. If the funds and assets belong to legal entities controlled by sanctioned persons, their branches, subsidiaries, or representative offices, a special commercial manager is appointed. The commercial manager must be registered in the Commercial Register and shall provide operational management, and take actions for preserving the property/assets.
If the respective international restrictive measure provides for it, an interested party may request an exemption (derogation) from its action. The party shall submit an application form with evidence to the Interdepartmental Council. The application is reviewed by the Council of Ministers within one month of its submission, and the refusal is subject to appeal.
