1. 5. 98 Official Journal of the European Communities L 130/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 926/98 of 27 April 1998 concerning the reduction of certain economic relations with the Federal Republic of Yugoslavia THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 73g and 228a thereof, Having regard to Common Position 98/240/CFSP of 19 March 1998 defined by the Council on the basis of Article J.2 of the Treaty on European Union on restrictive measures against the Federal Republic of Yugoslavia ('), Having regard to the proposal from the Commission, Whereas the said Common Position 98/240/CFSP provides for restrictive measures against the Federal Re- public of Yugoslavia, including action by the Community to reduce certain economic relations; Whereas certain of these measures fall within the scope of the Treaty establishing the European Community; Whereas, therefore, and notably with a view to avoiding distortion of competition, Community legislation is necessary for the implementation of these measures, as far as the territory of the Community is concerned; whereas such territory is deemed to encompass, for the purposes of this Regulation, all the territories of the Member States to which the Treaty establishing the European Com- munity is applicable, under the conditions laid down in that Treaty; Whereas a procedure should be provided to amend, if necessary, the list of equipment which might be used for internal repression or terrorism; Whereas there is a need for the Commission and the Member States to inform each other of the measures taken under this Regulation and of other relevant in- formation at their disposal in connection with this Regu- () OJ L 95, 27. 3. 1998, p. 1. lation, without prejudice to existing obligations with regard to certain items concerned, HAS ADOPTED THIS REGULATION: Article 1 The supply or sale, directly or indirectly, to the Federal Republic of Yugoslavia of equipment which might be used for internal repression or terrorism such as that set out in the Annex hereto shall be prohibited, except under the conditions laid down therein. The Annex shall not include items specially designed or modified for military use already subject to the arms embargo established on the basis of Common Positions 96/184/CFSP (3 and 98/240/CFSP. Article 2 As laid down in Article 3 of Common Position 98/240/ CFSP, the following shall be prohibited: (a) the provision and/or use of government and/or other official financial support, insurance and/or guarantees in respect of new export credit for trade with or investment in the Republic of Serbia or in relation to the renewal or extension of existing export credit, if the execution of the contract or transaction for which the export credit has been provided has not yet been started; (b) the provision or use of government and/or other offi- cial financing for privatisations in the Republic of Serbia in respect of which no legally binding commit- ments have been entered into so far. Article 3 The participation, knowingly and intentionally, in related activities the object or effect of which is, directly or in- directly, to promote the transactions or activities referred to in Articles 1 and 2 shall also be prohibited. ® OJ L 58, 7. 3. 1996, p. 1.