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UK Government Prohibits Export of Advertising Services to Russia

16/12/2022
Associations, Award Shows and Festivals
London, UK
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The Advertising Association issued a statement supporting the measure, which were announced via a statutory instrument yesterday
 
The UK Government has announced via a statutory instrument that, from 00.01 December 16th 2022, it will prohibit the export of advertising services, alongside some other professional services, to Russia.  
 
The Advertising Association issued a statement saying it fully supports these measures, as well as the decision of many companies who have already ceased trading with Russia. 
 
There will be a winding down exception to the advertising sanctions until March 15th 2023. This means that if UK service providers entered into contracts before December 16th 2022, they can honour these until March 15th 2023. After this date, the exception will not apply. You can find more information in Amendment 14
 
This announcement follows the government’s previous announcement at the end of September in which it set out its intention to extend the list of export service sanctions to Russia that were already in place, including PR services.
 
You can find the Government’s press release here which includes a full list of other professional services within the scope of the sanctions. The Advertising Association commented on this at the time, which you can find here.
 
Stephen Woodford, CEO of the Advertising Association said: “UK advertising and marketing businesses still providing services to Russia should urgently take note of the UK government’s announcement today. The statutory instrument has now been laid and from tomorrow (00.01, December 16th 2022) it will be illegal to supply advertising and marketing services to Russia. As the industry’s trade body, we fully support these measures, as well as the decision of many companies who have already ceased trading with Russia.
 
“Companies will be breaking the law if they export advertising and marketing services to Russia or to persons connected to Russia once the legislation comes into force, with limited exceptions. We urge businesses to act now to avoid illegal trading. We will continue to work with government to ensure that these sanctions have the maximum impact on Putin’s regime whilst minimising disruption to UK businesses and ensuring legitimate and necessary activity may continue.”
  

Below is a summary of the Advertising Association’s understanding of the sanctions and their applicability to advertising services. This is not intended to be legal advice – if you feel the sanctions apply to you, the organisation recommends seeking your own legal advice. 
 
The scope of the advertising sanctions: 
The legislation will apply to the direct or indirect provision of advertising services to Russia or persons connected with Russia. 
 
Code 836 of the 2002 Central Product Classification is being used to define advertising services to which the export sanctions apply. This covers: 
a.       Planning, creating and placement of advertising services; 
b.       Purchase or sale of advertising space or time, on commission; 
c.       Sale of advertising space in print media (except on commission); 
d.       Sale of TV, radio advertising time (exception on commission); 
e.       Sale of internet advertising space (except on commission); 
f.        Sale of other advertising space or time (except on commission); and 
g.       Other advertising services. 
  

Licences  

Licences may be issued for certain trade activities that would otherwise be prohibited by the sanctions. However, these activities are very limited. More information can be found here.
 

Helpful information: 

  • The statutory instrument giving effect to the latest sanctions 
  • The applicable regulations and guidance (both to be updated shortly) 
  • Parliament published a research briefing which provides a consolidated and brief overview of the Russian sanctions regime, including the ban on exports of certain professional services (see pages 25, 26). This document was last updated on November 16th – and is expected to updated again in time. 
 

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