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On Thursday, 21 June, the Saeima adopted as urgent in the final reading amendments to the Law on International Sanctions and National Sanctions of the Republic of Latvia, which improve regulations pertaining to sanction regimes to efficiently levy and execute national and international sanctions.

The amendments clarify the range of subjects to whom the compliance and execution of sanctions is binding. Furthermore, the amendments also update the provisions on the coming into force of national sanctions and the validity of Cabinet of Ministers regulations in case of appeal, as well as levying of sanctions in public procurement procedures. The amendments also provide competent authorities the right to decide on penalties in cases when the law is violated.

The amendments further elaborate the objective of the law, stating that these regulations shall also be applicable to sanctions established by the European Union or NATO member states. Furthermore, the amendments stipulate that all natural and legal persons must comply with the sanctions which are binding to the state. Thus, as the annotation of the amendments states, no person or entity may perform actions that would allow or facilitate bypassing or evading the sanction regime.

The amendments provide that an order establishing sanctions shall take effect as of its signing. The accompanying text to the amendments explains that the changes are necessary in order to eliminate any misunderstandings about the moment when national sanctions come into force. The amendments also stipulate that on the day following its signing, the order shall be published in the official journal “Latvijas Vēstnesis” to inform all legal subjects and allow the competent authorities time to execute all obligations placed on them by the order.

In the area of public procurements, the amendments provide the option to refuse a contract to suppliers who may fail to execute the contract in due time because of sanctions levied. The regulations apply to sanctions levied on candidates or applicants are legal entities, as well as their representatives and members of partnerships if the candidate or applicant is a partnership, and subcontractors and persons contracted in order to fulfil qualification requirements. The obligation will not apply to previously concluded contracts and procurement procedures which have been commenced or announced prior to these amendments taking effect.

The law as it stood to date, did not provide for the execution of sanctions in public procurements, thus allowing cases where contracts awarded through public procurement could not be executed due to established sanctions, the annotation of the amendments explains.

Saeima Press Service