Answer given by Ms McGuinness on behalf of the European Commission

21.6.2024

EU competition rules prohibit certain conduct by undertakings, such as agreements or concerted practices between market operators that restrict competition (e.g. price-fixing cartels) or the abuse of a dominant position on a given market by a company.

However, the matters described in the Honourable Member’s question concern the application of EU restrictive measures (sanctions) vis-à-vis Russia, and do not fall within the scope of EU competition rules.

EU sanctions do not apply extra-territorially. However, it is prohibited for EU parent companies to use their Russian subsidiaries to circumvent the obligations that apply to the EU parent, and EU parent companies may in certain cases incur liability for the business operations of a non-EU subsidiary. Moreover, EU sanctions must be complied with by EU nationals wherever they are physically located.

Ensuring the effective implementation and enforcement of sanctions is key to preventing circumvention, and to maintaining a level playing field for EU businesses.

The implementation and enforcement of EU sanctions is primarily the responsibility of the Member States. While the Commission is not in a position to investigate possible sanctions violations, it is fully committed to facilitating the work of Member States in this regard, and to ensuring the uniform implementation and proper enforcement of sanctions throughout the EU.