Sanctions Tracker EU

Amendment to one of the criteria for the listing of natural or legal persons, entities or bodies, to include leading businesspersons operating in Russia and their immediate family members, or other natural persons, benefitting from them, as well as businesspersons, legal persons, entities or bodies involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation.

Nine individuals have been added to the EU's list of persons subject to an asset freeze.

[These listings are made under the EU's Global Human Rights Sanctions Regime in connection with the ruling by a Moscow court to sentence the opposition politician, democracy activist and outspoken Kremlin critic Vladimir Kara-Murza to 25 years in prison on politically motivated charges based on false allegations started against him in 2022 after he accused the Kremlin of committing war crimes in Ukraine and publicly condemned Russian aggression. For more information, see the press release.]

The EU Commission has updated its Russia Sanctions FAQs by adding an FAQ on whether EU operators are obliged to avoid enabling, facilitating or otherwise contributing to access of internet subdomains and newly-created domains of targeted entities. (See Media FAQ 3).

The FAQ confirms that if a domain is blocked, subdomains should be blocked as well. The prohibition also applies to newly created Internet domains that are in substance run or controlled by targeted entities or used to circumvent the prohibition.

Two individuals have been added to the EU's list of persons subject to an asset freeze:

• Aleksandr Kalinin - a Moldovan politician and leader of the Party of Regions of Moldova, said to have provided support to Russian military forces; and

• Grigore Caramalac a.k.a. Grigory Ivanovich Karamalak – a Russian/Moldovan businessperson involved in organising patriotic and sports events in the occupied territories in eastern Ukraine. He is also the assistant to the Russian senator for the Kursk region, Alexander Bryksin.

The EU Commission President has announced the details of the EU's upcoming 11th package of restrictive measures, which will focus on circumvention. This will include:

• Trade restrictions – adding more products to existing export bans, for example advanced tech products or aircraft parts that are going to third countries via Russia;
• Trade via third countries – new tool to combat sanctions circumvention for goods going from the EU to third countries and then to Russia – as a last resort to be used cautiously following approval by EU Member States; and
• A ban on 'shadow' entities – both from Russia and third countries who are intentionally circumventing sanctions.

Two entities have been added to EU's list of persons subject to an asset freeze:

• Wagner Group, a Russia-based private military entity said to be participating in Russia's aggression against Ukraine; and
• RIA FAN, part of the Patriot Media Group, a Russian media organisation involved in pro-government propaganda and disinformation on Russia's war against Ukraine. 

 Media restrictions – extensions of existing measures

(Article 2f and amendment to Annex XV)

 The EU has confirmed that the existing prohibition on the broadcasting of content has been extended to include:

• RT Arabic; and
• Sputnik Arabic.

This will apply from 10 April 2023.

(See entries from 25 February 2023 (tenth package) and 16 December 2022 for more information.)

The EU Commission has updated its Russia sanctions FAQ on crypto-assets.

FAQ 2 has been updated to address whether European operators are expected to close the crypto accounts of their Russian customers and return their digital assets, or freeze of these assets. The update states that assets should be returned or be converted into fiat currency or another asset category not subject to sanctions. No freezing of assets is required (see FAQ 2 for more info).

The EU Parliament has published a briefing titled "EU sanctions on Russia: Overview, impact and challenges". The briefing includes a summary of the sanctions which have been imposed by the EU on Russia since the invasion. It also sets out a list of the EU Parliament's demands, including:

• Intensification of EU outreach to countries that have not yet introduced Russian sanctions. Parliament also criticised certain EU candidate countries' non-alignment with EU sanctions, and called for a clear plan of action towards non-EU countries facilitating sanctions evasion;
• Active prevention, investigation and prosecution by Member States of any sanction circumvention and the setting-up of a legal regime for the confiscation of assets frozen by sanctions;
• Development of an EU legal framework for the designation of states as sponsors of terrorism and states which use means of terrorism;
• Extension of the scope of the EU Global Human Rights Sanctions Regime (EU Magnitsky Act) to include acts of corruption, to adopt targeted sanctions against individuals responsible for high-level corruption in Russia and Belarus, as well as their EU-based enablers and beneficiaries;
• Action to hold the Russian and Belarusian political and military leadership accountable for the crime of aggression against Ukraine;
• Strict enforcement of all sanctions; and an impact assessment on the sanctions' effects on Russia's war effort and on the circumvention of sanctions;
• Sanction anyone associated with the 'Wagner group' and other Russian-funded armed groups, militias and proxies; and
• Creation of a secondary sanctions mechanism that would 'close any loopholes', and 'to complete the legal regime allowing for the confiscation of Russian assets frozen by the EU', and for their use to address reconstruction and compensation for the victims of Russia's aggression.

Shortly following Russia's invasion, Australia, Canada, France, Germany, Italy, Japan, the UK, the US and the EU Commission launched the Russian Elites, Proxies and Oligarchs (REPO) Task Force to coordinate efforts to exert pressure on sanctioned Russian individuals and entities. The REPO Task Force recently published a "Global Advisory on Russian Sanctions Evasion".

The REPO Task Force's recommendations for regulated entities include:

• Ensuring compliance with national rules incorporating FATF recommendations as implemented in their respective jurisdictions. This includes designing appropriate risk mitigation measures to prevent illicit financial activity such as the use of shell companies or nominees;
• Ensuring that compliance programs implement relevant AML/ CFT laws and are regularly reviewed;
• Taking part in existing public-private partnerships (e.g. partnerships with competent authorities) to promote cooperation to detect, report and address potentially violative conduct;
• Leverage information sharing protocols to enhance their efforts to identify and mitigate the risk of Russian sanctions evasion activity;
• Update risk assessments to capture changes in illicit behaviour and how these materialise into risks that businesses face;
• Increase awareness of sanctions risk and its impact for non-AML/ CFT regulated entities. The latter should seek out educational opportunities and engagements so that they better understand sanctions and their implementation to avoid facilitating Russian sanctions.

4 Russian police officers and members of the armed forces have been added to EU's list of persons subject to an asset freeze for their involvement in serious human rights violations in Ukraine or against anti-war protesters in Russia:

• Ramil Rakhmatulovich IBATULLIN;
• Alexander Georgievich FEDORINOV;
• Ivan RYABOV; and
• Nikolay Anatolevich KUZNETSOV.
   

The EU and Canada published a joint press release stating that they will increase coordination on sanctions, their enforcement and export control restrictions.

The press release further states that Canada has been added as a Partner Country for EU's sanctions regulations against Russia, resulting in better exchange of information and best practices to more effectively enforce existing and future sanctions [see entry dated 25 February below for more information].

The G7 issued a statement at the one-year mark of Russia's invasion of Ukraine after its call on 24 February 2023. The G7 partners reaffirmed their commitment to strengthening sanctions and imposing new coordinated economic actions against Russia in the days and weeks ahead. This includes the following new measures:

• Expanding current sanctions, including by preventing and responding to evasion through the establishment of an "Enforcement Coordination Mechanism";
• Calling on other international actors who seek to evade or undermine sanctions to cease providing material support to Russia, or face severe costs;
• Further aligning measures, such as transit or services bans, including to prevent Russian circumvention;
• Adopting further measures to prevent Russia from accessing inputs that support its military and manufacturing sectors, including industrial machinery, tools, construction equipment and other technologies used to build the war machine;
• Working collectively on further measures on Russian diamonds, including rough and polished ones, working closely to engage key partners;
• Taking additional measures in relation to Russia’s financial sector; and
• Imposing targeted sanctions, including on those responsible for war crimes or human rights violations and abuses, exercising illegitimate authority in Ukraine, or who otherwise are profiting from the war.

The G7 also reaffirmed the need for an international mechanism to register the damages that Russia has inflicted and for Russia's sovereign assets to remain immobilised in G7 jurisdictions until there is a resolution to the conflict.

25 February 2023

EU's "tenth package" of restrictive measures

EU Commission press release, European Council press release

EU Q&A on the tenth package

Trade restrictions: transit of dual use items and firearms via Russia

(amendment to Articles 2 and 2aa)

Introduction of a new prohibition on the transit via the territory of Russia of dual-use and technology and firearms, their parts and essential components and ammunition, exported from the EU.

Subject to certain pre-existing exceptions.

Trade restrictions: aviation and space industry goods or technology

(amendment to Article 3c and new Part D of Annex XI)

Amendment to existing exemptions to restrictions on the export of goods/technology for use in aviation or the space industry (Article 3c – see entry dated 25 February 2022 below):

• Additions to the list of items which are subject to the restrictions - relating to turbojets (Part D of Annex XI)
• For items listed in Part D of Annex XI, the prohibitions shall not apply to the execution until 27 March 2023 of contracts concluded before 26 February 2023, or of necessary ancillary contracts.

Transport restrictions: air travel via Russia – amendment

(amendment to Article 3d)

Trade restrictions: revenue generating goods – amendment

(amendment to Article 3i and new Part C of Annex XXI)

Amendment to existing exemptions to restrictions on the import of goods which generate significant revenues for Russia (Article 3i – see entry dated 15 July 2022 below):

• Additions to the list of items which are subject to the restrictions – a new Part C of Annex XXI. This includes a ban on imports into the EU of Russian synthetic rubber, carbon blacks, asphalt or bitumen (CN Codes 2712, 2713, 2714, 2715, 2803 and 4002).

This new prohibition in respect of the goods in Part C of Annex XXI shall not apply:

• to the execution until 27 May 2023 of contracts concluded before 26 February 2023, or of ancillary contracts necessary for the execution of such contracts;
• to the import, purchase or transport, or related technical or financial assistance, necessary for the import into the Union, until 30 June 2024, of the following quantities (i.e. import quotas):

- 752 475 metric tonnes for goods falling under CN code 2803; and

- 562 973 metric tonnes for goods falling under CN code 4002.

Trade restrictions: enhancement of Russian industrial capacities – amendment

(amendment to Article 3k and new Part C of Annex XXIII)

Amendment to existing exemptions to restrictions on the export of goods which could contribute to the enhancement of Russian industrial capacities (Article 3k – see entry dated 8 April 2022 below):

• Additions to the list of items which are subject to the restrictions – long list of additional items added including iron and steel goods, electronics, machine parts, pumps, machinery for working metals (new Part C of Annex XXIII)
• For goods listed in Part C of Annex XXIII, the prohibitions shall not apply to the execution until 27 March 2023 of contracts concluded before 26 February 2023, or of ancillary contracts.
• Competent authorities may grant authorisation for the export of goods (and related services) in the new Part C of Annex XXIII if strictly necessary for the production of titanium goods required in the aeronautic industry, for which no alternative supply is available.

Financial restrictions: transferrable securities and money-market instruments issued by the Russian Government – new reporting requirements

(amendment to Article 5a)

All EU natural and legal persons (including banks, the ECB, and CSDs) must report to their national competent authority and the Commission on any assets or reserves belonging to the Central Bank of Russia (or those acting on its behalf, incl. the National Wealth Fund) which they hold or control or are a counterparty to by 12 March 2023 and updated every three months.

The Article specifies what information is to be reported.

Any unforeseen loss or damage to those assets/reserves must be reported immediately.

Financial restrictions: transactions with state-owned entities – new exceptions/derogations

(amendment to Article 5aa)

Amendments to exceptions:

• Extension of wind-down exception: transactions which are strictly necessary for the wind-down, by 31 December 2023, of a joint venture or similar legal arrangement concluded before 16 March 2022 (deadline was previously 30 June 2023).
• New exception: the provision of pilot services to vessels in innocent passage as defined by international law which are necessary for reasons of maritime safety

Ban on Russian nationals holding posts in critical entities

(new Article 5o)

As of 27 March 2023, it shall be prohibited to allow Russian nationals or natural persons residing in Russia to hold any posts in the governing bodies of the owners or operators of critical infrastructures, European critical infrastructures and critical entities.

The prohibition shall not apply to nationals of a Member State, a country in the EEA or Switzerland.

For the purposes of this prohibition:

• "critical entities" means any public or private entities which have been identified by a Member State in accordance with the process set out in Directive (EU) 2022/2557 as belonging to certain specified categories, including energy, transport, banking, financial market infrastructure, health, drinking or waste water, digital infrastructure, public administration, space, and production, processing and distribution of food.
• "critical infrastructure" means

o an asset, system or part thereof located in Member States which is essential for the maintenance of vital societal functions, health, safety, security, economic or social well-being of people, and the disruption or destruction of which would have a significant impact in a Member State as a result of the failure to maintain those functions; or

o an asset, a facility, equipment, a network or a system, or a part of an asset, a facility, equipment, a network or a system, which is necessary for the provision of an essential service;

• "European critical infrastructure" means critical infrastructure located in Member States the disruption or destruction of which would have a significant impact on at least two Member States. The significance of the impact shall be assessed in terms of cross-cutting criteria. This includes effects resulting from cross-sector dependencies on other types of infrastructure;
• "owners or operators of critical infrastructures" means those entities responsible for investments in, and/or day-to-day operation of, a particular asset, system or part thereof designated as critical infrastructure or European critical infrastructure.

Gas storage ban

(new Article 5p)

It shall be prohibited to provide storage capacity in a storage facility, except for the part of liquefied natural gas facilities used for storage, to:

• a Russian national, a natural person residing in Russia, or a legal person, entity or body established in Russia;
• a legal person, entity or body whose proprietary rights are directly or indirectly owned for more than 50% by a legal person, entity or body referred to in the point above; or
• a natural or legal person, entity or body acting on behalf or at the direction of a legal person, entity or body referred to above.

"storage capacity" means any combination of space, injectability and deliverability.

"storage facility" means a facility used for the stocking of natural gas and owned and/or operated by a natural gas undertaking, including the part of LNG facilities used for storage but excluding the portion used for production operations, and excluding facilities reserved exclusively for transmission system operators in carrying out their functions.

The prohibition above shall not apply to the operations that are strictly necessary for the termination by 27 March 2023 of contracts which are not compliant with this prohibition concluded before 26 February 2023 or of necessary ancillary contracts.

National competent authorities can authorise otherwise prohibited activity which is necessary for ensuring critical energy supply within the EU.

Professional and business services: derogation - divestment from Russia or wind-down of activities in Russia

(amendment to Article 12b)

Introduction of a new derogation for professional and business services:

• national competent authorities can authorise the continuation of services if it is strictly necessary for the divestment from Russia or the wind-down of business activities in Russia, subject to certain conditions
   

Technical assistance: exception

(new Article 12d)

Trade restrictions: import bans – release of goods from customs

(new Article 12e)

Provisions dealing with when goods subject to import restrictions under EU Russian sanctions can be released from EU customs. These are designed to ensure legal certainty concerning the treatment of imports.

1. Goods physically in the Union may be released as provided for in the Union Customs Code by the customs authorities provided that they have been presented to customs in accordance with the Union Customs Code before the entry into force or applicability date of the respective import prohibitions, whichever is latest.
2. All procedural steps necessary for the release referred to in paragraphs 1 and 5 of the relevant goods pursuant to the Union Customs Code shall be allowed.
3. The customs authorities shall not allow the release of the goods if they have reasonable grounds to suspect circumvention and shall not authorise the re-export of the goods to Russia.
4. Payments in relation to such goods shall be consistent with the provisions and objectives of EU Russia sanctions restrictions, in particular the prohibition on purchasing, and asset freeze measures.
5. Goods physically in the Union and presented to customs prior to 26 February 2023 which were stopped in application of EU Russia sanctions restrictions may be released by the customs authorities under the conditions provided for in paragraphs 1, 2, 3 and 4.
    

Trade restrictions: dual use goods / goods contributing to the enhancements of Russia's defence and security sector

(Articles 2a and b, amendments to Annex IV and VII)

96 entities have been added to the list of those who are subject to tighter export restrictions regarding dual-use goods and technology as well as goods and technology which might contribute to the technological enhancement of Russia’s defence and security sector (Annex IV). This includes seven Iranian entities that have been using EU components and providing Russia with military "Shahed" drones to attack civilian infrastructure in Ukraine.

The list of goods and technology which might contribute to Russia’s military and technological enhancement, or the development of the defence and security sector (Annex VII) has also been updated to include adding rare-earths and compounds, electronic integrated circuits and thermographic cameras, among others.

List of partner countries: update

(Amendment to Annex VIII)

The list of "partner countries" which are applying a set of export control measures substantially equivalent to those set out in the EU Russia Regulation (No. 833/2014) has been expanded to include: Australia, Canada, New Zealand and Norway.

The definition is relevant to various derogations and exceptions, and provisions relating to information-sharing.

Media restrictions: potential extension of existing measures

(Article 2f and amendment to Annex XV)

The European Council is to consider whether the existing broadcasting prohibition introduced on 16 December 2022 (see entry below) should be expanded to include:

• RT Arabic
• Sputnik Arabic

Further legislation will follow if the restrictions are to be so extended.

This has now been confirmed – see entry on 3 April 2023 above.

87 individuals and 34 entities have been added to the EU's Russian sanctions list. Newly listed individuals include:

• Russian decision-makers, senior government officials and military leaders, proxy authorities installed by Russia in Ukraine e.g. members of the Federation Council of the Russian Federation, prosecutors of annexed regions under the authority of the Office of Public Prosecutor of the Russian Federation, and members of the State Duma;
• Key figures involved in the kidnapping of Ukrainian children to Russia such as Lenara a Khakimovna IVANOVA, Vyacheslav Vyacheslavovich DUKHIN and Viktoria Vyacheslavovna YAKIMOVA;
• Individuals spreading Russian war disinformation and propaganda e.g. members of Russia's Presidential Council Civil Society and Human Rights, such as Igor Stanislavovich ASHMANOV, a Russian IT expert and entrepreneur, and Alexandr Brod is a Russian lawyer and a Kremlin-loyalist human rights defender;
• Members of the Wagner group, a Russian mercenary group (Hayk Arsenovich GASPARYAN and Anton Olegovich ELIZAROV). Members of the Wagner group in other countries, such as Mali or Central African Republic, are also targeted;
• Iranian executives of the Paravar Pars Company and Qods Aviation Industry involved in the elaboration of drones and components supporting Russia's military, namely Abualfazl NAZERI, Abulghasem VALAGOHAR, Hossein SHAMSABADI, and Ghassem DAMAVANDIAN.

Newly listed entities include:

• Elektropribor JSC, a leading company in the Russian maritime defense industry;
• Morinformsystem Agat JSC, a leading company in the Russian shipbuilding industry;
• Limited Liability Company “Commercial Vehicles – GAZ Group” , Russia's top producer of commercial vehicles;
• JSC Ural Civil Aviation Factory, a Russian aircraft manufacturer;
• SUN Ship Management (D) Ltd, a Dubai-based ship management company, which is part of PAO Sovcomflot (SCF Group), Russia’s largest shipping company, specialising in the transportation of liquefied gas, crude oil, and petroleum products, as well as the servicing of offshore upstream energy production;

The newly listed entities also include Russian financial institutions and 2 media outlets:

• The Russian National Reinsurance Company, a Russian state-controlled joint stock company and subsidiary of the Bank of Russia;
• Alfa-Bank JSC, the largest private bank in the Russian Federation. Associated entities include: Alfa Capital Markets LTD (Cyprus); Alfa-Direct (Russia); Alfa-Forex LLC (Russia); Alfa-Lizing OOO (Russia); Amsterdam Trade Bank NV (the Netherlands); Subsidiary Bank Alfa Bank JSC (Kazakhstan) and ABH Holdings;
• Public joint-stock company Rosbank, one of the largest financial structures in Russia, and one of the country’s top lenders. Associated entities includes TCS group Holding PLC;
• Tinkoff Bank JSC, one of the three largest banks in Russia, based on the number of its active clients. Associated entities includes TCS group Holding PLC;
• The National Wealth Fund of the Russian Federation, a reserve fund controlled by the government. Associated entities include VTB Bank and Sberbank; and
• RT Arabic and Sputnik Arabic, Arab language subsidiaries of RT (Russia Today) and Sputnik.

Derogations under which national competent authorities can authorise otherwise prohibited activity by certain entities subject to specific conditions, as follows:

• Alfa-Bank JSC, Rosbank and Tinkoff Bank JSC:

o where such funds or economic resources are necessary for the termination by 26 August 2023 of operations, contracts, or other agreements, including correspondent banking relations, concluded with those entities before 25 February 2023.

o For Alfa-Bank only, in connection with the disbursement of funds by the Jewish Claims Conference to beneficiaries in the Russian Federation by 26 November 2023,

• National Settlement Depository (Russia's central securities depository), where such funds or economic resources are necessary for the disposal/transfer of securities by an EU entity which is currently or was previously controlled by VTB Bank, if such disposal/transfer is completed by 24 July 2023 in connection with operations/agreements etc concluded with the National Settlement Depository before 3 June 2022
• Commercial Vehicles – GAZ Group (Russia's top supplier of commercial vehicles) where such funds or economic resources are necessary for the termination by 26 August 2023 of operations, contracts or other agreements concluded with, or otherwise involving, that entity before 25 February 2023.

In addition, there a number of amendments to previously granted derogations.

Asset freeze: new reporting requirements

(Regulation 269/2014, amended Article 8)

Natural and legal persons must supply the following information to their national competent authority within 2 weeks of acquiring it:

1. information on:
   

   a. frozen funds and economic resources; or
   
   b. funds and economic resources within the EU belonging to, owned, held or controlled by designated persons/entities which have not been treated as frozen by the persons/entities obliged to do so

2.  information funds and economic resources belonging to or controlled by designated persons/entities which were subject to any dealing/transfer/access/use etc in the 2 weeks before they became designated, including:

a. information identifying the natural or legal persons, entities or bodies owning, holding or controlling the frozen funds and economic resources, including their name, address and VAT registration or tax identification number;

b. the amount or market value of such funds or economic resources at the date of reporting and at the date of freezing; and

c. the types of funds, broken down according to the specific categories identified in the definition of "funds" and "economic resources", including crypto-assets.

Central securities depositories (CSDs) are required to provide the following information to the competent authority of the Member State where they are located, within two weeks of acquiring it and every three months thereafter, and transmit it simultaneously to the Commission:

• the information referred to above; and
• information on extraordinary and unforeseen loss and damage concerning the relevant funds and economic resources.

The obligation to report is ancillary to the effective application of the asset freeze provisions, and is without prejudice to the monetary functions and the principle of independence of the European Central Bank and of the national central banks.

All reporting obligations above shall apply from 26 April 2023.

Extension of Belarus sanctions

Council Decision (CFSP) 2023/421 & Press release

The EU will prolong for another year restrictive measures imposed on Belarus. The measures will now apply until 28 February 2024.

For context, the sanctions against Belarus consist of a ban on travel to the EU and an asset freeze for listed persons and entities (currently 195 individuals and 34 entities). EU persons and entities are also forbidden from making funds available to those listed, either directly or indirectly. Belarus is also subject to targeted economic sanctions, (e.g. restrictions in the financial sector, trade, dual-use goods, technology and telecommunication, economy and transport).

The Netherlands published a non-paper on strengthening EU sanctions capacity and countering sanctions circumvention. The proposals include the following:

• Increase focus on alternative supply chains created through the use of front companies in countries surrounding Russia, notably on Western components that are crucial to the Russian military industry;
• Strengthen the feedback loop between enforcement practice at national level and sanctions policy at EU-level (e.g. by enhancing cooperation between agencies such as customs, tax authorities and prosecutors the intelligence community, as well as research institutes and statistics agencies);
• Strengthen the EU point of contact for sanctions circumvention (e.g. by setting up a "Sanctions HQ" in Brussels and creating a platform for common analysis on individual cases of circumvention and jurisdictions facilitating circumvention). The Netherlands also suggested leveraging the soon to be established EU Anti Money Laundering Authority (AMLA) for countering sanctions circumvention (background info regarding the AMLA here);
• Identify concrete steps for diplomatic outreach and potential further measures (e.g. by coordinating with G-7 plus partners to coordinate engagement with third states, notably with countries in the Global South);

• Expand the EU-toolbox, for example:

o Issuing guidance by EU institutions for EU companies and tools to recognize and counter circumvention patterns;

o Issuing official warnings to certain persons/entities inside and outside the EU;

o Create a watch list of companies and/or sectors/trade flows of specific concern and explore possibilities of publishing ‘suspicions’ or warnings in case sufficiently solid evidence cannot be presented, enabling due diligence for companies;

o Encourage companies in circumvention-sensitive sectors to adopt contractual obligations regarding end-use;

o Consider using the EU’s trade toolbox and possibly other instruments of external action in cases of widespread circumvention in a state which refuses to act upon these issues.

• Expand listing capacities:

o The EU needs to be able to act also on other cases where circumvention may be linked directly or indirectly to the use of products/components on the battlefield in Ukraine, thereby including a broader category of products/components required for weapons and military production.

The EU held its first Sanctions Coordinators Forum. The event gathered all EU Member States and the U.S, the UK, Japan, Canada, Australia, New Zealand, Norway, Switzerland and Ukraine.

The EU also reached out to the United Arab Emirates last week, together with the US Sanctions Coordinator and the UK's Sanctions Directorate, to foster cooperation with third countries.

The focus of the meeting was international cooperation in ensuring that sanctions are implemented fully and effectively, notably by analysing circumvention routes and patterns, and potential solutions.

The EU Council was joined by Ukraine's Minister of Foreign Affairs, Dmytro Kuleba, to exchange views on the following points during a Foreign Affairs Council:

• Ongoing work to adopt the EU's 10th package of sanctions (see entry dated 15 February 2023 below for more information);
• The issue of full accountability for Russian crimes including the crime of aggression (see entries dated 30 November 2022 and 8 February 2023 for more information); and
• The diplomatic outreach to G7 partners and in the UN to ensure broad support for the draft resolution on the "UN Charter principles underlying a comprehensive, just and lasting peace in Ukraine".

The EU Commission President and Vice-President have announced the details of the EU's 10th package of restrictive measures. This package will include the following:

• Export bans targeting critical technology and industrial goods such as:

  o electronics, specialized vehicles, machine parts, spare parts for trucks and jet engines; and
  
  o goods for the construction sector which can be directed to Russia's military, such as antennas or cranes.

• Restrictions on the export of dual-use goods and advanced tech goods, including controls on:

o 47 new electronic components that can be used in Russian weapons systems (e.g. drones, missiles, helicopters); and

o Specific rare earth materials and thermal cameras;

• Sanctions targeting third country entities under the Russia dual-use sanctions regime, including 7 Iranian and other third country entities that are providing sensitive technology to Russia (e.g. drones);
• New measures to prevent circumvention of sanctions, including tracking oligarchs trying to hide or sell their assets to escape sanctions; and setting up an overview of all frozen assets of the Russian central bank held in the EU. Such measures may assist the EU in its plan to use frozen Russian assets to fund reconstruction in Ukraine (see entry dated 30 November 2022 below for more information);
• Additional asset freezes against 100 individuals and entities, targeting:

  o those involved in kidnappings, deportations and forced adoption of Ukrainian children to Russia;
  
  o those enabling the looting of Ukrainian resources;
  
  o organisations related to the Russian military and defence sector;
  
  o those responsible for the development of drones targeting civilians and civilian infrastructure;
  
  o key decision-makers, senior government officials and parliamentarians;
  
  o proxy authorities and judges in the four annexed Ukrainian regions Luhansk, Donetsk, Kherson and Zaporizhzhia; and
  
  o media organisations, persons and organisations who are polluting the public space with disinformation.

The EU will also organise a Sanctions Coordinator Forum, gathering international partners and Member States to strengthen enforcement efforts. The EU aims, together with its G7 partners, to have significant sanctions in place by 24 February - exactly one year after Russian launched its invasion.

A number of third countries have notified the EU that they will align themselves with the EU's decision to introduce two price caps for petroleum products falling under CN code 2710 (see entry dated 4 February 2023 below for more information).

These countries are the candidate countries North Macedonia, Montenegro, Albania, Ukraine, and Bosnia and Herzegovina, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area.

The Council of Europe has suggested creating a register recording evidence and claims for damage, loss or injury to all natural and legal persons concerned, as well as to the State of Ukraine.

The register forms part of the EU's initiative to hold Russia accountable for its crimes of aggression. The Council of Europe will rely on the experiences of the United Nations Compensation Commission (UNCC)15 and the United Nations Register of Damage (UNRoD)16 to define the model of the overall compensation mechanism.

The Council also explored the possibility of setting-up a special tribunal for the prosecution of the perpetrators of crimes against Ukraine (see entry dated 30 November 2022 below for background information). This initiative is supported by the EU Parliament. Options put forward by the Council to set up the tribunal include:

• entering into a multilateral agreement between Ukraine and other interested states (following the precedents of the Nuremberg International Military Tribunal);
• entering into an agreement between Ukraine and an international organisation (e.g. the UN); and
• creating a hybrid tribunal based on Ukrainian law and endorsed by the UN.

The EU has updated the following guidance:

• Customs-related matters (see FAQs 1, 2 and 11);
• Oblasts (see FAQ 4); and
• Humanitarian aid (see FAQ 1).

The following individual has been removed from the consolidated list and is no longer subject to an asset freeze:

• Dmitry Vladimirovich OVSYANNIKOV, former governor of Sevastopol.

Following the implementation of the price cap in Russian oil products, the EU has updated:

• its "Oil Imports" FAQs (see FAQ 15); and
• its "Guidance on oil price cap" (see questions 3a, 6, 8, 8a, 10, 11, 12, 12a, 14a, 18a, 18b, 23, 24, 25, 26a, 30, 35a).

EU Press Release- Price Cap on Russian Oil Products

Council Decision (CFSP) 2023/252 amending Decision 2014/512/CFSP

The European Union, the G7 and Price Cap Coalition adopted further price caps for seaborne Russian petroleum products which will come into force from 5 February 2023. This follows the implementation of the price cap for crude oil (see entry dated 3 December 2022 below for more information).

Council Decision (CFSP) 2023/252 sets two price levels for Russian petroleum products falling under CN code 2710, namely:

• USD 100 per barrel for ”premium-to-crude” petroleum products, such as diesel, kerosene and gasoline; and
• USD 45 per barrel for ”discount-to-crude” petroleum products, such as fuel oil and naphtha.

As of mid-March 2023, the review of the price caps should be based on objective data provided by the Commission to the Council every two months.

Council Decision (CFSP) 2023/252 also introduces a transitional period of 55 days for vessels carrying petroleum products originating in Russia which are purchased and loaded onto the vessel prior to 5 February 2023 and unloaded at the final port of destination prior to 1 April 2023. 

One entity has been designated and is now subject to an asset freeze due to its involvement in the development and delivery of Unmanned Aerial Vehicles to Russia:

• Iran Aircraft Manufacturing Industries Corporation (HESA)

The broadcasting prohibition introduced on 16 December 2022 (see entry below) will come into force on 1 February 2023 in respect of the following Russian outlets:

• NTV/NTV Mir;
• Rossiya 1;
• REN TV; and
• Pervyi Kanal.

The EU Commission is considering whether the powers of the European Public Prosecutor’s Office ("EPPO") should be extended to include breaches of restrictive measures adopted by the EU. At present, the EPPO is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU (e.g. fraud, corruption, money laundering and cross-border VAT fraud).

An extension of the EPPO's powers would require a unanimous decision of the European Council, followed by an amendment of the EPPO Regulation (Council Regulation (EU) 2017/1939). This follows the EU's decision to add the violation of restrictive measures to the list of EU crimes (see entry dated 28 November 2022 below).

Within the framework of the Technical Support Instrument programme, the Council of Europe is currently supporting competent authorities from the Czech Republic, Latvia and Malta, and other Member States in implementing sanctions against Russia.

A regional conference was held on 16-17 January 2023 in Prague with representatives of 19 Member States to exchange practices and share experience regarding:

• real cases of identification of persons holding effective control and establishment of firewalls;
• identification of typologies for circumventing EU sanctions through disinvestment; and
• current practices for freezing and seizing of assets from companies owned or controlled by persons or entities included in EU sanctions lists.

The conclusions of the conference will further enrich the content of the EU's study “Identification of persons holding effective control of a company, establishing firewalls and preventing the sanctions evasion through disinvestment”.

The EU has amended the list of dual-use items subject to controls in the EU as part of its annual update:

• The updated EU control list includes new entries in the field of electronics, semiconductors and computers such as Electronic Computer-Aided Design (ECAD) used in the design process of Gate-All-Around Field-Effect Transistor (GAAFET), certain frequency synthesisers and signal generators, gallium oxide and diamond as new semiconductor materials, as well as their related technology;
• The control on digital computers has been adapted to the evolution of the technology, being 70 TeraFLOPS the new threshold;
• In the chemical and biological sector, the updated list includes software specially designed for nucleic acid assemblers and synthesisers;
• Under the category of aerospace and propulsion, the addition of sub-orbital crafts and certain technology for the manufacturing of gas turbines (pressure gain combustion) stands out. There is a modification on additive manufacturing equipment designed for “superalloys”; and
• The updated control list also adds technical notes as local definition for “resolution”, “superalloys”, and a new technical note for “direct-acting hydraulic pressing”. It also adds a new nota bene regarding gas turbine engines and a definition of GAAFET.

Other changes are mostly removals, changes of references and editorial changes.

The EU published its 2023 work programme. The programme sets out the list of the most important actions the EU will take in the year ahead. Points relevant to sanctions include:

• The sanctions against Russia will remain in force for as long as the aggression against Ukraine and annexation of Ukrainian territory continues;
• In Q2, 2023, the EU intends to update its sanctions toolbox to include corruption;
• The Commission is prepared to revise the EU’s Foreign Direct Investment screening regulation to strengthen its functioning and effectiveness. The EU will draw on experience of the current EU export control regime, and of the implementation of Russian sanctions, to strengthen its strategic export controls, working closely with Member States and international partners. The EU will also examine whether additional tools are necessary in respect of outbound strategic investments controls; and
• The EU will continue to coordinate to ensure the effective enforcement of sanctions to maintain strong economic pressure on Russia and undermine its ability to wage war on Ukraine. 

The Commission has updated its Russia sanctions FAQs, available here. Please refer to the FAQs below for updates:

• Insurance and reinsurance: FAQ 4;
• Import, purchase and transfer of listed goods: FAQ 6;
• Transit of listed goods via Russia: FAQs 1 and 2;
• Provision of services: FAQs 3, 9, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, and 29.

16 December 2022

The EU's "ninth package" of restrictive measures.

EU Council press release and EU Commission press release.

EU Q&A on this package of restrictive measures can be accessed here.

The new/amended Regulations can be accessed here

Financial restrictions – investment in Russian energy sector – expansion to mining sector

(Amendment to Article 3a and new Annex XXX) 
 

Extension of existing prohibitions targeting new investments in the Russian energy sector by additionally prohibiting new investments in the Russian mining and quarrying sector. It is prohibited to:

• acquire new, or extend existing, participation in any Russian entity or any third-country entity operating in the mining and quarrying sector in Russia;
• grant new loans or credit or other financing, including equity capital, to any Russian entity or any third-country entity operating in the mining and quarrying sector in Russia, or for the purpose of financing such an entity;
• create a new joint venture with any Russian entity or any third-country entity operating in the mining and quarrying sector in Russia; and
• provide investment services directly related to any of the above.

"mining and quarrying sector" means a sector covering the location, extraction, management and processing activities relating to non-energy producing materials.

This prohibition does not apply to mining and quarrying activities which predominantly relate certain critical raw materials including Aluminium (including bauxite), Chromium, Cobalt, Copper, Iron ore, Mineral fertilisers (including potash and phosphate rock), Molybdenum, Nickel, Palladium, Rhodium, Scandium, Titanium, Vanadium, certain heavy rare earths (dysprosium, erbium, europium, gadolinium, holmium, lutetium, terbium, thulium, ytterbium, yttrium) and certain light rare earths (cerium, lanthanum, neodymium, praseodymium and samarium) – as listed in Annex XXX.

Trade restrictions: aviation and space industry goods or technology – amendment to exceptions/derogations

(amendment to Article 3c) 

Amendment to existing exemptions to restrictions on trade goods/technology for use in aviation or the space industry (Article 3c – see entry dated 25 February 2022 below):

• Additions to the list of items which are subject to the restrictions - relating to parts for piston engines (Part C of Annex XI)
• For items listed in Part C of Annex XI, the prohibitions shall not apply to the execution until 16 January 2023 of contracts concluded before 17 December 2022, or of necessary ancillary contracts [unchanged from existing exemptions]

Introduction of new grounds for authorisation by competent authorities:

• if the activity is deemed necessary to avoid collisions between satellites or their unintended re-entry into the atmosphere;
• for goods falling under CN codes 8517 71 00, 8517 79 00 and 9026 00 00 listed in Part B of Annex XI, if necessary for medical or pharmaceutical purposes, or for humanitarian purposes.

Trade restrictions – iron and steel products – amendment

(amendment to Article 3g)

Addition to the existing prohibitions on trade in Russian iron and steel products (see entries dated 15 March 2022 and 6 October below): From 1 October 2024, the prohibition on the import or purchase of certain iron and steel products processed in a third country incorporating iron and steel products originating in Russia will now include products with CN code 7224 90.

Addition to the existing import volume quotas for products with CN code 7224 90 to which the above prohibition will not apply:

• 147 007 metric tonnes between 17 December 2022 and 31 December 2023;
• 110 255 metric tonnes between 1 January 2024 and 30 September 2024.

Amendment of existing exemption in respect of items listed in Part B of Annex XVII to exclude products with CN code 7224 90.

Amendments to the exemptions to existing restrictions:

• Goods which generate significant revenues for Russia – Article 3i.
• Goods which could contribute in particular to the enhancement of Russian industrial capacities – Article 3k

Trade restrictions: Russian oil and petroleum products – amendments

(amendments to Article 3m)

 As from 5 February 2023, it shall be prohibited to:

• transfer or transport petroleum products falling under CN 2710 which are obtained from crude oil imported on the basis of a derogation granted by the Bulgarian competent authority to other Member States or to third countries, or
• to sell such petroleum products to purchasers in other Member States or in third countries.

The Bulgarian competent authority can authorise such activity in specific circumstances.

Introduction of specific derogation grounds for the competent authorities of Hungary and Slovakia.

Trade restrictions: Russian LNG

(amendments to Article 3m) 

Introduction of a requirement for EU persons and entities to report to their competent authority all transactions for:

• the purchase, import or transfer into the EU; and
• the purchase or transfer into third countries,

of natural gas condensates of subheading CN 2709 00 10 from liquefied natural gas production plants, originating in or exported from Russia, including volume information.

Based on this information, the European Commission will review measures relating to such products no later than 18 June 2023.

Financial restrictions: prohibition on listing by trading venues – amendment

(amendments to Article 5(5)) 

Financial restrictions: transactions with state-owned entities – extended

(amendment to Article 5aa) 

From 16 January 2023, the existing prohibitions on transactions with Russian state-owned entities includes a ban on EU nationals from holding any posts in the governing bodies of:

• entities established in Russia, publicly controlled or with over 50% public ownership, or in which Russia, its government or the Central Bank has the right to participate in profits or has other substantial economic relationship;
• entities established in Russia whose proprietary rights are directly or indirectly owned for more than 50% by an entity referred to in the paragraph above; or
• entities established in Russia and acting on behalf/ at the direction of an entity referred to in the paragraphs above.

(The ban was previously limited to Annex XIX entities - see entry dated 6 October 2022 for the previous version of the prohibition).

Competent authorities may grant an authorisation to their nationals for holding such posts:

• in existing joint ventures or similar legal arrangements as well as EU subsidiaries established in Russia,
• when the holding of such a post is necessary for ensuring critical energy supply,
• or when the legal person, entity or body is involved in the transit through Russia of oil originating in a third country and the holding of such a post is intended for operations which are not otherwise prohibited.

Competent authorities may also authorise, under such conditions as they deem appropriate, transactions which, are strictly necessary for the divestment and withdrawal by 30 June 2023, of the entities mentioned above or their subsidiaries in the Union from a legal person, entity or body established in the Union.

In respect of the existing ban on existing prohibitions on transactions with Russian state-owned entities:

• Russian Regional Development Bank is now the subject of the restriction (added to a new Part C of Annex XIX). Exceptions apply until 18 March 2023.
• Existing wind-down exception for all prohibited entities is extended until 30 June 2023 for arrangements concluded before 16 March 2022.

Financial restrictions: bank deposits – reporting requirements

(amendment to Article 5g) 

EU credit institutions are required to report to their competent authority by no later than 27 May 2023 a list of deposits exceeding 100.000 EUR held by a legal person, entity or body established outside the EU and whose proprietary rights are directly or indirectly owned for more than 50% by Russian nationals or natural persons residing in Russia.

Updates are to be provided every 12 months.

Business services: prohibition – new services added

(amendment to Article 5n) 

It shall be prohibited to provide market research and public opinion polling services, technical testing and analysis services and advertising services to:

• the Government of Russia; or
• legal persons, entities or bodies established in Russia.

In line with the Central Products Classification as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No 77, CPC prov., 1991:

• "market research and public opinion polling services" covers market research services and public opinion polling services.
• "technical testing and analysis services" covers composition and purity testing and analysis services, testing and analysis services of physical properties, testing and analysis services of integrated mechanical and electrical systems, technical inspection services, as well as other technical testing and analysis services. The provision of technical assistance related to goods exported to Russia remains allowed, provided that the sale, supply, transfer or export of such goods is not prohibited under this Regulation at the time at which such technical assistance is provided.
• "advertising services" covers the sale or leasing services of advertising space or time and the planning, creating and placement services of advertising, as well as other advertising services.

The ban shall not apply to the provision of services that are strictly necessary for the termination by 16 January 2023 of contracts which are not compliant with this prohibition concluded before 17 December 2022, or of ancillary contracts necessary for the execution of such contracts.

Authorisations/derogations available on various grounds.

Derogations – divestment from Russia or wind-down of activities in Russia

(new Article 12b) 

Media ban – extension of existing measures

(Article 2f / amendments to Annex XV) 

From 1 February 2023, the existing prohibition on the broadcasting of content will be extended to four Russian outlets:

• NTV/NTV Mir;
• Rossiya 1;
• REN TV; and
• Pervyi Kanal.
  

In line with the Charter of Fundamental Rights, these measures will not prevent those media outlets and their staff from carrying out activities in the EU other than broadcasting, e.g. research and interviews.

Trade restrictions: various amendments

(amendments to Annex VII, XI, XVII, XXIII, XXV, Annex XXXI and Annex XXXII) 

New export restrictions have been introduced on sensitive dual-use and advanced technologies that contribute to Russia's military capabilities and technological enhancement. This includes drone engines, camouflage gear, additional chemical/biological equipment, riot control agents and additional electronic components found in Russian military systems on the battlefield.

Restrictions on key industrial goods used by the Russian military, such as toy/hobby drones, complex generator devices, laptop computers and computing components, printed circuits, radio navigational systems, radio remote control apparatus, cameras and lenses have also been added.

Asset freeze: Derogations – release of frozen funds

(amendments to Regulation 269/2014) 

Introduction of various grounds for the release of frozen funds by competent authorities:

• For certain listed entities for specific reasons; and
• More generally, for entities which held a significant role in international trade in agricultural and food products, including wheat and fertilisers, prior to their listing, if such funds or resources are necessary for the sale, supply, transfer or export of agricultural and food products, including wheat and fertilisers, to third countries in order to address food security.

 Asset Freeze

The EU's press release is available here.

Approximately 200 individuals and entities have been added to the EU's list of persons subject to an asset freeze. This includes the Russian armed forces, as well as individual officers and defence industrial companies, members of the State Duma and Federation Council, ministers, Russian proxy authorities in occupied areas of Ukraine and political parties.

The newly sanctioned entities include:

• Credit Bank of Moscow;
• Dalnevostochniy Bank (JSC ‘Far Eastern Bank’);
• National Media Group, a media holding, controlling 28 media enterprises in Russia, including Channel One, Channel 5, REN TV and STS, 78.ru, the national newspaper Izvestia, Delovoy Peterburg and other outlets. It is owned by Bank Rossiya;
• A number of Russian political parties;
• Various branches of the Russian armed forces;
• SBK ART LLC, a company in the Russian Federation associated with Sberbank.
• JSC Central Research Institute ‘Burevestnik', a Russian arms industry company;

The newly sanctioned individuals include:

• Tatyana Alexandrovna Kovalchuk, co-owner of Russia’s largest insurer Sogaz through the Russian investment firm Aquila Capital Group;
• Alexey Nikolov, general director of the media organisation TV-Novosti and its subordinate RT news television network; and
• Igor Yurievich Churbanov, General Director of the Votkinsk Plant, which manufactures missiles and ammunitions for the Iskander and Tochka-U complexes.

4 Iranian individuals and 4 Iranian entities have been added to the list of those subject to restrictive measures for undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. This is due to their role in the development and delivery of drones used by Russia in its war against Ukraine.

The entities subject to sanctions are:

• Design and Manufacturing of Aircraft Engines (DAMA);
• Islamic Revolutionary Guard Corps Research and Self-Sufficiency Jihad Organization (IRGC SSJO);
• Oje Parvaz Mado Nafar Company (Mado); and
• Paravar Pars Company.

The Council has also signalled its intention to impose restrictive measures against a further entity on the same grounds in its press release.

Council Decision (CFSP) 2022/2369- Amendment to Decision 2014/512/CFSP

Council Regulation (EU) 2022/2367- Amendment to Regulation (EU) No 833/2014

New paragraph 5 of Article 4p of Decision 2014/512/CFSP and new paragraph 5 of Article 3n of Regulation (EU) No 833/2014

New paragraph 6 of Article 4p of Decision 2014/512/CFSP
New paragraph 10 of Article 4p of Decision 2014/512/CFSP and new paragraph 9 of Article 3n of Regulation (EU) No 833/2014

New paragraph 12 of Article 4p of Decision 2014/512/CFSP and new paragraph 11 of Article 3n of Regulation (EU) No 833/2014

Amendment to existing restrictions to implement the Russian oil and petroleum products price cap mechanism, set at USD 60 per barrel – see 6 October 2022 entry below.

In addition to establishing the price cap, the Council introduced:

• An extension of the transition period applicable to the transport of crude oil and certain petroleum products after every subsequent change in the price cap for a period of 90 days to the provision, directly or indirectly, of technical assistance, brokering services or financing or financial assistance, related to the transport, subject to conditions. This measure is necessary to ensure consistent implementation of the price cap by all operators.
• A transitional period of 45 days for vessels carrying crude oil originating in Russia, which was purchased and loaded onto the vessel prior to 5 December 2022 and unloaded at the final port of destination prior to 19 January 2023;
• An exemption from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries, where necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters; and
• A periodic review of the price cap mechanism to adapt to the market situation as of mid-January 2023 and every 2 months thereafter. Such review will take into account the fact that the price should be at least 5% below the average market price for Russian oil and petroleum products. The average market price should be calculated in cooperation with the International Energy Agency.

Press Release- Russian oil: EU agrees on level of price cap

Council Decision (CFSP) 2022/2369- New Annex XI to Decision 2014/512/CFSP

Commission Implementing Regulation (EU) 2022/2368- New Annex XXVIII to Council Regulation (EU) No 833/2014

The Council set the oil price cap at USD 60. That is the price per barrel at or below which crude oil from Russia is exempt from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries.

Decision (CFSP) 2022/2369 clarifies:

• the existing prohibition on the trading and brokering of Russian crude oil and petroleum products and extends the price cap exemption when such goods are traded at or below the price cap (new paragraph 1 and 4, Article 4p of Decision 2014/512/CFSP); and
• that the prohibition to provide services related to the transport of Russian crude oil or petroleum products by a third country flagged vessel applies in relation to vessels which in the past transported such goods purchased above the price cap, provided the operator responsible for that transport knew or had reasonable cause to suspect that this was the case. This is necessary in order to ensure legal certainty (new paragraph 8, Article 4p of Decision 2014/512/CFSP).

The Securities and Markets Stakeholder Group (SMSG) of the European Securities and Markets Authority (ESMA) has advised ESMA and the EU Commission to regulate depository receipts (DR) following disruptions to the DR market resulting from sanctions imposed in March 2022 against Russia.

The SMSG has also requested guidance and a clear harmonised approach to EU citizens maintaining at least their asset rights (including rights to dividends) in Russian companies.

For context, a depositary receipt is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange or sold directly to investors. DRs are alternatives to trading directly with the stock exchange in the foreign market.  

The Commission has published its proposed directive to harmonise criminal offences and penalties for violations of EU sanctions across Member States (please see the entry dated 28 November below for more information).

For next steps, the European Parliament and the Council will discuss the proposed directive as part of the ordinary co-legislative procedure. The Commission's Q&A is also available here.

The main elements of the proposed directive are summarised below.

New definitions of the criminal offences related to sanction violations would include:

• making funds or economic resources available to, or for the benefit of, a designated person, entity or body (Article 3(2)(a));
• failing to freeze these funds without undue delay (Article 3(2)(b));
• enabling the entry of designated people into the territory of a Member State or their transit through the territory of a Member State (Article 3(2)(c));
• entering into transactions with third countries, which are prohibited or restricted by EU restrictive measures (Article 3(2)(d));
• trading in goods or services whose import, export, sale, purchase, transfer, transit or transport is prohibited or restricted (Article 3(2)(e));
• providing financial activities which are prohibited or restricted (Article 3(2)(f));
• providing other services which are prohibited or restricted, such as legal advisory services, trust services and tax consulting services (see Article 3(2)(g));
• circumventing an EU restrictive measure (e.g. by concealing funds or failing to report funds belonging to a designated person) (Article 3(2)(h)); and
• inciting, aiding, abetting or attempting the offences above (Article 4).

Depending on the criminal offence committed, natural persons would incur the following penalties:

• a maximum penalty of at least 1 year of imprisonment when involving funds of a minimum value of EUR 100,000 (Article 5(3)); or
• a maximum penalty of at least 5 years of imprisonment when involving funds of a minimum value of EUR 100,000 (Article 5(3)); and/or
• additional penalties such as fines.

Legal persons would face liability for:

• Criminal offences committed for the entity's benefit by a person having a leading position within the entity (Article 6(1)); and/or
• A lack of supervision or control which made possible the commission of the criminal offence for the benefit of the entity (Article 6(2)).

Penalties may include criminal or non-criminal fines, exclusion from entitlement to public benefits or aid, exclusion from access to public funding, including tender procedures, grants and concessions or other penalties, such as:

• disqualification from the practice of business activities;
• withdrawal of permits and authorisations to pursue activities which have resulted in committing the offence;
• placing under judicial supervision;
• judicial winding-up;
• closure of establishments.

Firms may also be subject to fines of no less than 5% of the total worldwide turnover of the legal person in the business year preceding the decision (Article 7(3)).

The Commission has put forward two proposals to hold Russia accountable for its crimes against Ukraine, namely:

1. Creating a new structure to invest frozen public Russian assets and use the proceeds for the reconstruction of Ukraine; and
2. Setting up a new court to investigate and prosecute Russia's crime of aggression. The Commission has suggested two alternatives:

• a specialised court integrated in a national system with international judges; or
• a special independent international tribunal based on a multilateral treaty.

As Russia does not recognise the jurisdiction of the International Criminal Court, the Commission's intention is that setting up a new court backed by the United Nations would enable Russia's prosecution for crimes of aggression.

For next steps, the options above will be presented by the Commission to the Member States for discussion.

The Council unanimously adopted a decision to add the violation of restrictive measures to the list of ‘EU crimes’ included in the Treaty on the Functioning of the EU ("TFEU").

The TFEU currently does not provide for the establishment of minimum rules concerning penalties for the violation of EU restrictive measures, since their violation is not yet covered by the areas of crime listed under Article 83(1) TFEU. Different laws across the EU contributes to varying degrees of enforcement depending on the Member State where the infringement is pursued and can lead to forum shopping by offenders.

Criminalising the violation of sanctions under Article 83 will ensure a similar degree of sanctions enforcement throughout the EU and will dissuade attempts to violate EU sanctions. For next steps, the Commission will present a proposal for a directive containing minimum rules concerning the definition of criminal offences and penalties for the violation of EU sanctions. The draft directive will then be discussed and adopted by the Council and the Parliament.

The EU designated 2 Iranian individuals and 2 Iranian entities for their roles in the development and supply of drones (referred to as "Unmanned Aerial Vehicles") used by Russia in its aggression against Ukraine:

• Hossein Salami
• Amir Ali Hajizadeh
•  Islamic Revolutionary Guard Corps - Aerospace Force (a.k.a. IRGC Air Force)

Qods Aviation Industries (a.k.a. Qods Aeronautics Industries)

The EU has updated its "Oil imports" FAQs. New FAQ 2 clarifies that Russian oil transported and mixed with oil of other origin is subject to the EU's import prohibitions. Mixing through pipelines serving Russian and non-Russian productions for technical reasons should not "generate any avoidable financial flows or indirect benefits in favour of Russian actors for the Russian-origin oil transported via the pipeline, excluding the necessary transportation costs".

A quantity of oil corresponding to the non-Russian volume may be allowed into the EU provided that its origin can be clearly demonstrated to the Member States' authorities, for instance through documentation proving the exact volume of oil originating in the non-Russian third country, such as a certificate of origin.

The EU has proposed amending the Single Euro Payments Area Regulation (EU) No 260/2012 and (EU) 2021/1230 regulating instant credit transfers in euros. 

The proposed amendments introduce a harmonised approach to avoid the frictions caused by Payment Service Providers ("PSPs") applying divergent screening processes in relation to the requirement to freeze assets and not to make funds or economic resources available to sanctioned persons and entities when executing euro instant payments. 

Instead of undertaking a transaction-by-transaction sanctions screening, PSPs would be required to verify at least once a day whether any of their customers are designated  persons or entities subject to EU sanctions, and in any event, immediately after the entry into force of any new or amended designations. 

The execution of an instant payment for a sanctioned payer/payee due to a failure to carry out the required verification will result in the PSP being liable for any financial damage to the other PSP (i.e. penalties imposed by the Member State under the EU sanctions regulations). Such requirements would apply 6 months after entry into force of the amendments.

Further information is available in the EU's Factsheet and Q&A. 

The Commissioner for Financial Services, Financial Stability and Capital Markets Union, Mairead McGuinness, chaired a dedicated high-level meeting with the relevant competent authorities from Member States on sanctions implementation.
Following the meeting, the Commission will take the following actions:

• Organise a structured and comprehensive exchange of best practices among Member States on setting up efficient and effective internal structures – in particular improved internal coordination;
• Establish a new mechanism allowing Member States to contact each other and exchange information in real time on derogations and authorisations with a cross-border dimension, and entities owned and controlled by listed persons;
• Set up a workstream on circumvention with an Experts’ Conference; and
• Follow-up bilaterally with all 27 national competent authorities.

The EU designated 3 Iranian individuals and 1 Iranian entity for their roles in the development and supply of drones (referred to as "Unmanned Aerial Vehicles") used by Russia in its aggression against Ukraine:

• Saeed Aghajani
• Mohammad Bagheri
• Seyed Hojjatollah Qureishi
• Shahed Aviation Industries, a drone manufacturing company.

The EU's press release is available here.

The EU clarified the following points in response to a parliamentary question:

• The transfer of ownership of an asset to a third person before being EU-sanctioned does not constitute a violation of EU sanctions;
• If a designated person maintains control over an asset after being sanctioned, the asset should be treated as frozen; and
• Participating in a scheme after sanctions are imposed which was created before sanctions in order to evade the effects of future sanctions can amount to circumvention.

In addition to individual and economic sanctions, the EU also fully suspended the visa facilitation agreement between the EU and Russia (please see the entry dated 9 September 2022 below for more information).

On 12 October, the EU ambassadors agreed a mandate for negotiations with the European Parliament on a decision on the non-acceptance of Russian travel documents issued in Ukraine and Georgia.

Russian travel documents issued in, or to persons resident in, Russian-occupied regions in Ukraine or breakaway territories in Georgia will not be accepted as valid travel documents for obtaining a visa or crossing the borders of the Schengen area.

On the basis of this mandate, the presidency of the Council is ready to start discussions with the European Parliament.

The EU has updated its consolidated Russian sanctions FAQs. Additional clarification has been provided on the following topics:

• Asset freeze and prohibition to provide funds or economic resources (vessels owned/ operated by designated persons). Please see question 33 of the FAQ available here.
• Access to EU Ports. Please see questions 10 and 12 of the FAQ available here.
• Export-related restrictions (on export controls for dual-use and advanced technologies). Please see questions 1 2, 3, 4, 7, 10, 11, 12, 13, 15, 16, 18, 19, 20, 26, 29, 31, 39, 40, 45, 51, 53 available here.
• Imports and purchase of listed goods (on the transfer of goods under Regulation 833/2014). Please see questions 2 and 4 available here.
• Deposits. Please see questions 1, 2, 3, 4, 10, 12, 13, 14, 15, 16, 17, 19, 20, 24, 27, 32, 36, 40, 41, 42, 43, 44, 45 available here.

The EU's "eighth package" of restrictive measures.

EU Council press release and EU Commission press release.

EU Q&A on this package of restrictive measures can be accessed here.

The new/amended Regulations can be accessed here.

Trade restrictions: firearms and ammunition

(new Article 2aa)

A prohibition on the sale, supply, transfer or export of firearms and their essential parts and ammunition (as listed in Annex I to Regulation (EU) No 258/2012 – accessible here) to any natural or legal person, entity or body in Russia or for use in Russia.

Includes a prohibition on related:

• technical assistance, brokering services or other services;
• provision, manufacture, maintenance and use of those goods, directly or indirectly to any natural or legal person, entity or body in Russia or for use in Russia; and
• financial services, funds and in respect of those goods/technology. 

Trade restrictions: aviation and space industry goods or technology – amendment to exceptions/derogations

(amendment to Article 3c)

Amendment to existing exemptions to restrictions on trade goods/technology for use in aviation or the space industry (Article 3c – see entry dated 25 February 2022 below):

• For items listed in Part A of Annex XI, the prohibitions shall not apply to the execution until 28 March 2022 of contracts concluded before 26 February 2022, or of necessary ancillary contracts [unchanged from existing exemptions]
• For items listed in Part B of Annex XI, the prohibitions shall not apply to the execution until 6 November 2022 of contracts concluded before 7 October 2022, or of necessary ancillary contracts [new/amended exemption].

Introduction of a new ground for authorisation by competent authorities: if the activity is deemed necessary for the production of titanium goods required in the aeronautic industry, for which no alternative supply is available.

Trade restrictions: iron and steel products

(amendment to Article 3g)

Amendments to the existing restrictions on trade in Russian iron and steel products (listed in Annex XVII – see 15 March entry below), as follows:

From 30 September 2023, a prohibition on the import/purchase of the specified iron and steel products processed in a third country incorporating any of the specified iron and steel products originating in Russia, but:

• this prohibition shall apply as of 1 April 2024 for products with CN code 7207 11; and
• this prohibition shall apply as of 1 October 2024 for products with CN code 7207 10.

Amendment to the existing exemption:

• For items listed in Part A of Annex XVII, the prohibitions shall not apply to the execution until 17 June 2022 of contracts concluded before 16 March 2022, or of necessary ancillary contracts [unchanged from existing exemptions]
• For items listed in Part B of Annex XVII (and not in Part A), the prohibitions shall not apply to the execution until 8 January 2023 of contracts concluded before 7 October 2022, or of necessary ancillary contracts [new/amended exemption]. This exemption does not apply to products with CN codes 7207 10 or 7207 11

Introduction of new import volume quotas for products with CN codes 7207 10 or 7207 11 to which the prohibitions will not apply:

• For products with CN codes 7207 10:

- 3 747 905 metric tonnes between 7 October 2022 and 30 September 2023;
- 3 747 905 metric tonnes between 1 October 2023 and 30 September 2024.

• For products with CN codes 7207 11:

- 487 202 metric tonnes between 7 October 2022 and 30 September 2023;
- 85 260 metric tonnes between 1 October 2023 and 31 December 2023;
- 48 720 metric tonnes between 1 January 2024 and 31 March 2024.

Introduction of new grounds for authorisation by competent authorities (incl. civil nuclear facilities, medical applications, environmental radiation monitoring, civil nuclear cooperation).

Trade restrictions: goods which generate significant revenues for Russia - amendments

(amendment to Article 3i)

Amendments to existing exemptions:

• For items listed in Part A of Annex XXI, the prohibitions shall not apply to the execution until 10 July 2022 of contracts concluded before 9 April 2022, or of necessary ancillary contracts [unchanged from existing exemptions]
• For items listed in Part B of Annex XXII (and not in Part A), the prohibitions shall not apply to the execution until 8 January 2023 of contracts concluded before 7 October 2022 [new/amended exemption].
• The prohibitions shall not apply to purchases in Russia: (i) which are necessary for the functioning of diplomatic and consular representations of the Union and of the Member States; or (ii) for the personal use of nationals of Member States and their immediate family members.

Introduction of new grounds for authorisation by competent authorities (incl. civil nuclear facilities, medical applications, environmental radiation monitoring, civil nuclear cooperation).

Trade restrictions: goods which contribute to the enhancement of Russian industrial capacities – amendment

(amendment to Article 3k)

Introduction of a new exemption: For goods falling under CN codes 2701, 2702, 2703 and 2704 (as listed in Annex XXIII), the prohibitions shall not apply to the execution until 8 January 2023 of contracts concluded before 7 October 2022, or of necessary ancillary contracts.

Introduction of new grounds for authorisation by competent authorities (incl. civil nuclear facilities, medical applications, environmental radiation monitoring, civil nuclear cooperation).

Trade restrictions: transport of Russian oil and petroleum products – amendment

(amendment to Article 3n and new Article 7a)

The exemption to the existing prohibition (see 3 June entry below) has been extended for petroleum products falling under CN code 2710, such that the prohibition shall not apply to the execution of contracts concluded before 4 June 2022, or of necessary ancillary contracts, until 5 February 2023.

Introduction of new exemptions:

• the payment of insurance claims (i) after 5 December 2022, for crude oil falling under CN code 2709 00; or (ii) after 5 February 2023, for petroleum products falling under CN code 2710, on the basis of insurance contracts concluded before 4 June 2022 and provided that the insurance coverage has ceased by the relevant date.
• the provision of pilot services necessary for reasons of maritime safety.
• see also c) below for further new exemptions.

1. It shall be prohibited to transport, including through ship-to-ship transfers, crude oil falling under CN code 2709 00 (from 5 December 2022) and petroleum products falling under CN code 2710 (from 5 February 2023) to third countries if they originate in Russia or which have been exported from Russia, and any related technical assistance, brokering services or financing or financial assistance, related to the transport.
2. Any subsequent amendments to the price cap will not apply for a period of 90 days, provided that: (i) the transport is based on a contract concluded before that date of entry into force; and (ii) the purchase price per barrel did not exceed the price cap in place on the date of conclusion of that contract.
3. The existing prohibitions (see 3 June entry below) and the new prohibition in a) will not apply:

- to crude oil or petroleum products where the purchase price is below the price cap in Annex XXVIII;

- to the prohibited crude oil or petroleum products which originate in a third country and are only departing from/transiting through Russia, provided that the origin and owner are non-Russian;

- to the transport, or to technical assistance, brokering services, financing or financial assistance related to such transport of certain specified products/destinations/durations listed in Annex XXIX.

Financial restrictions: transactions with state-owned entities – extensions

(amendment to Article 5aa)

The existing prohibition on engaging in any transactions with the state-owned entities listed in Annex XIX (see 15 March / fourth package below) are extended to include the Russian Maritime Register of Shipping (RMRS), subject to exceptions for:

• to the execution until 8 January 2023 of contracts concluded with RMRS before 7 October 2022, or of ancillary contracts; and/or
• the reception of payments due by RMRS pursuant to contracts performed before 8 January 2023.

The EU's recognition of the Russian Maritime Register of Shipping is withdrawn.

Trust services: new exemption

(amendment to Article 5m)

New exemption to the existing prohibition on the provision of trust services (see 8 April / fifth package below):

• The prohibition does not apply when the trustor or beneficiary is a national of, or has temporary or permanent residence in, an EU Member State, an EEA member state or Switzerland.

Business services: extension of restrictions

(amendment to Article 5n)

A new prohibition on the provision of architectural and engineering services, legal advisory services and IT consultancy services to (i) the Government of Russia; or (ii) legal persons, entities or bodies established in Russia.

In line with the Central Products Classification as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No 77, CPC prov., 1991:

• "architectural and engineering services" covers both architectural and engineering services as well as integrated engineering services, urban planning and landscape architectural services and engineering-related scientific and technical consulting services.
• "engineering services" does not cover technical assistance related to goods exported to Russia where their sale, supply, transfer or export is not prohibited at the time at which such technical assistance is provided.
• "IT consultancy services" covers consultancy services related to the installation of computer hardware, including assistance services to the clients in the installation of computer hardware (i.e. physical equipment) and computer networks, and software implementation services, including all services involving consultancy services on, development of and implementation of software.
• "legal advisory services" covers: the provision of legal advice to customers in non-contentious matters, including commercial transactions, involving the application or interpretation of law; participation with or on behalf of clients in commercial transactions, negotiations and other dealings with third parties; and preparation, execution and verification of legal documents. ‘Legal advisory services’ does not include any representation, advice, preparation of documents or verification of documents in the context of legal representation services, namely in matters or proceedings before administrative agencies, courts or other duly constituted official tribunals, or in arbitral or mediation proceedings.

Exceptions for:

1. the provision of services that are strictly necessary for the termination by 8 January 2023 of prohibited contracts concluded before 7 October 2022;
2. the provision of services that are strictly necessary for the exercise of the right of defence in judicial proceedings and the right to an effective legal remedy;
3. the provision of services which are strictly necessary to ensure access to judicial, administrative or arbitral proceedings in a Member State, or for the recognition or enforcement of a judgment or an arbitration award rendered in a Member State, provided that such provision of services is consistent with the objectives of EU sanctions on Russia;
4. services provided to Russian entities which are owned or controlled, solely or jointly, a person/entity incorporated in the EU, EEA, Switzerland or a partner country listed in Annex VIII (US, Japan, UK, South Korea);
5. services necessary for public health emergencies, the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters.
6. services necessary for software updates for non-military use and for a non-military end user, permitted by Articles 2(3)(d) (dual use goods) and 2a(3)(d) (Russia's military technological enhancement) in relation to goods listed in Annex VII.

The exceptions listed at b), c) and d) above also apply to the existing prohibition on the provision of accounting, auditing, including statutory audit, bookkeeping or tax consulting services, or business and management consulting or public relations services – see 3 June / sixth package below.

Derogations available for:

• humanitarian purposes, civil society activities, and the functioning of EU diplomatic/consular representations in Russia;
• ensuring critical energy supply within the EU and the supply of titanium, aluminium, copper, nickel, palladium and iron ore into the EU;
• the operation of infrastructures, hardware and software which are critical for human health and safety, or the safety of the environment;
• civil nuclear facilities, medical applications, environmental radiation monitoring, civil nuclear cooperation; and
• various electronic communication purposes.

Expansion of the lists of various categories of goods/technology which are subject to import and export restrictions/prohibitions:

• Annex VII - extension of export restrictions on items which might contribute to Russia's military and technological enhancement or to the development of its defence and security sector, to include certain chemical substances, nerve agents and goods which have no practical use other than for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment, or which could be used for those purposes (Article 2a)
• Annex XXI - extension of import restrictions on items that generate significant revenues for Russia, to include wood pulp and paper, certain elements used in the jewellery industry such as stones and precious metals, certain machinery and chemical items, cigarettes, plastics and finished chemical products such as cosmetics (Article 3i).
• Annex XXIII - extension of export prohibitions on items which could contribute to the enhancement of Russian industrial capacities, to include new items (Article 3k)
• Annex XI - extension of export prohibition on goods used in the aviation sector, to include new items (Article 3c).

Introduction of a new criteria for designation:

• natural or legal persons, entities or bodies facilitating infringements of the prohibition against circumvention of the various EU Regulations / Decision imposing sanctions on Russia.

30 individuals, including individuals that have played a role in the organisation of illegal "referenda", representatives of the defence sector, and well-known persons spreading disinformation about the war.

7 entities:

• JSC Goznak
• OJSC V.A. Degtyarev Plant
• MKB “Fakel”
• JSC Irkut Corporation
• MMZ Avangard
• JSC A.N. Ganichev Scientific and Production Association “SPLAV”
• Central Election Commission (CEC)

The EU has amended Annex 1 to Regulation (EU) No 692/2014 (sanctions in response to the illegal annexation of Crimea and Sevastopol) with an updated a list of websites for information on Member States' competent authorities and address for notifications to the Commission (please find the new annex here).

These sanctions were extended for a further year in June following Russia's invasion of Ukraine (please see the entry dated 20 June 2022 below).

3 individuals have been removed from the asset freeze list:

• Vladimir Volfovich Zhirnovsky;
• Olga Ayziman; and
• Saodat Narzieva 

2 individuals have been removed from the asset freeze list⁴:

• Viktor Pavlovych Pshonka; and
• Artem Viktorovych Pshonka.  

 3 individuals: 

• Alla Viktorovna Polyakova;
• Anton Olegovich Tkachev; and
• Valery Andreevich Ponomarev 

2 individuals:

• Viktor Fedorovych Yanukovych (oligarch and former president of Ukraine); and
• Oleksandr Viktorovych Yanukovych (businessman and son of the above).

21 July 2022

The EU's "seventh package" of restrictive measures (referred to as a "maintenance and alignment" package)

EU Q&A on this package of restrictive measures can be accessed here.

Due to the EU's desire to combat food and energy insecurity, it has extended the exemption from the prohibition to engage in transactions with certain State-owned entities as regards transactions for agricultural products and the supply of oil and petroleum products to third countries.

Third countries and their nationals operating outside of the EU are also not prevented from purchasing pharmaceutical or medical products from Russia.

Expands the prohibition on accepting deposits to include those from legal persons, entities or bodies established in third countries and majority-owned by Russian nationals or natural persons residing inside Russia.

The acceptance of deposits for non-prohibited cross-border trade will be subject to prior authorisation by the national competent authorities.

Extends the list of controlled items, which may contribute to:

• Russia's military and technological enhancement;
• or the development of its defence and security sector,

thereby reinforcing export controls on dual use and advanced technology (see Annex II).

Trade restrictions – Russian gold

(new Article 3o)

Prohibition on the purchase/import/transfer of gold (as listed in Annexes XXVI and XXVII) if it originates in Russia and has been exported from Russia after 22 July 2022, and related technical assistance, brokering services, financing and financial assistance, and services related to the provision, manufacture, maintenance and use of those goods.

The prohibition is subject to the following exceptions:

• Gold which is necessary for the official purposes of diplomatic missions, consular posts or international organisations in Russia enjoying immunities in accordance with international law;
• For goods listed in Annex XXVII, for personal use of natural persons travelling to the EU or members of their immediate families travelling with them, owned by those individuals and not intended for sale.
• The competent authorities may authorise the transfer or import of cultural goods which are on loan in the context of formal cultural cooperation with Russia.

This prohibition applies to jewellery.

47 individuals, including those holding leadership positions within the National Guard and Committee on Security and Anti-Corruption; and

9 entities:

• AVLITA Stevedoring Company;
• Nightwolves MC;
• The Alexander Gorchakov Public Diplomacy Fund;
• The Federal Agency for the Commonwealth of Independent States Affairs, Compatriots Living Abroad and International Humanitarian Cooperation (Rossotrudnichestvo);
• Russkiy Mir Foundation;
• JSC Research and Production Association "Kvant";
• Sberbank
• FORSS Group of Companies; and
• All-Russia "Young Army" Military Patriotic Social Movement.

6 individuals, of Syrian nationality, who have recruited individuals to fight in Ukraine alongside Russia:

• Muhammad Al-Salti;
• Abu Hani Shammout;
• Nabeul Al-Abdullah;
• Simon Al Wakil;
• Fawaz Mikhail Gerges; and
• Yasar Hussein Ibrahim

1 entity: Al-Sayyad Company for Guarding and Protection Services 

Prohibits the knowing/intentional participation in activities which aim to circumvent the asset freeze measures.

Natural and legal persons on the asset freeze list shall:

• Report before 1 September 2022 or within 6 weeks from the date of listing in Annex I, whichever is latest, funds or economic resources within the jurisdiction of a Member State belonging to, owned, held or controlled by them, to the competent authority of the Member State where those funds or economic resources are located; and
• Cooperate with the competent authority in any verification of such information.

Failure to do so will be considered as participation in activities aiming to circumvent the asset freeze measures.

The reporting obligation will not apply until 1 January 2023 with regard to funds or economic resources located in a Member State that had a similar reporting obligation prior to 21 July 2022.

Legal persons, entities and bodies are required to:

• Supply immediately any information which would facilitate compliance with the Regulation, such as information on frozen accounts and amounts or information held about funds and economic resources within Union territory

- Belonging to, owned, held or controlled by natural or legal persons, entities or bodies on the asset freeze list; and

- Which have not been treated as frozen by the natural and legal persons, entities and bodies obliged to do so

To the competent authority of the Member State where they are resident or located, and shall transmit such information, directly or through the Member State, to the Commission; and

• Cooperate with the competent authority in the verification of such information.

A new derogation from the asset freeze measures – with the authorisation of a Member State, the restrictions shall not apply to specified entities on the asset freeze list with regard to funds or economic resources that are strictly necessary for:

• The termination by 22 August 2023 of operations, contracts, or other agreements including correspondent banking relations concluded with that entity before 21 July 2022;
• The completion, by 31 October 2022, of an ongoing sale and transfer of proprietary rights in a legal person established in the Union, directly or indirectly owned by that entity;
• The purchase, import or transport of agricultural and food products, including wheat and fertilisers.

A new general derogation from the asset freeze measures –with the authorisation of a Member State, the restrictions shall not apply to funds or economic resources that are strictly necessary for:

• The urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, as long as the proceeds resulting from the release of such economic resources are frozen;

Extends the deadline (see entry from 8 April 2022) from 9 October 2022 to 31 December 2022, or within 6 months from the date of listing in Annex 1, whichever is latest. by which a competent authority may authorise the release of/making available from frozen funds or economic resources belonging to a designated person/entity if

• The funds or economic resources are necessary for the sale and transfer of proprietary rights in an entity established in the EU where those proprietary rights are directly or indirectly owned by a designated individual/entity; and
• The proceeds of such sale and transfer remain frozen.

The European Commission has adopted a joint proposal for a new package of measures to maintain and strengthen the effectiveness of the EU's six packages of sanctions against Russia. It clarifies a number of provisions to strengthen legal certainty for operators and enforcement by Member States. It also further aligns the EU's sanctions with those of its allies and partners, in particular the G7.

The new package will:

• Introduce a new import ban on Russian gold;
• Reinforce the dual use and advanced technology export controls; and
• Strengthen reporting requirements to tighten EU asset freezes.

It is also proposed that the current EU sanctions should be extended for six months, until the next review in January 2023.

For more information, see here.

The Joint Task Force has published a statement on the steps they have been taking to seize assets of those individuals and entities who have been sanctioned in connection with the invasion of Ukraine.

See here for the statement and here for the EU's press release

65 individuals: including military personnel, Government personnel, business people and family members, propagandists and columnists,

18 entities: including military suppliers and contractors, vehicle manufacturers, other suppliers to the Russian Government and Russia's central securities depository.

A new derogation from the asset freeze measures – the restrictions shall not apply to funds or economic resources that are strictly necessary for:

• the provision of electronic communication services by EU telecommunication operators,

• the provision of associated facilities and services necessary for the operation, maintenance and security of such electronic communication services, in Russia, in Ukraine, in the EU, between Russia and the EU, and between Ukraine and the EU, and
• data centre services in the EU.

Amendment to the requirement that Member States shall set out rules on penalties for infringing EU asset freeze measures, to include:

•  that such penalties shall include "as appropriate criminal penalties"; and
• the inclusion of "appropriate measures of confiscation of the proceeds of such infringements".

Media ban – extension of existing measures

(Article 2f / Annex XV – amendments)

Extension of the existing prohibition on the broadcasting of content (see 2 March / third package below) to three further Russian State outlets:

• Rossiya RTR/RTR Planeta
• Rossiya 24/Russia 24
• TV Centre International

The scope of the measure has been extended to also include a prohibition on the advertising of products or services by the designated media outlets (as listed in Annex XV).

This restriction is due to come into force from 25 June 2022, subject to the European Council passing further implementing legislation.

Trade restrictions – Russian oil and petroleum products

(new Article 3m)

Prohibition on the purchase/import/transfer of the following crude oil or petroleum products (as listed in Annex XXV) if they originate in Russia or are exported from Russia, and related technical assistance, brokering services, financing or financial assistance.

• Petroleum oils and oils obtained from bituminous minerals, crude (CN 2709 00)
• Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils (CN 2710)

The prohibition is subject to the following exceptions:

• until 5 December 2022, to one-off transactions for near-term delivery, concluded and executed before that date, or to the execution of contracts for the purchase, import or transfer of goods falling under CN 2709 00 concluded before 4 June 2022, subject to a notification requirement;
• until 5 February 2023, to one-off transactions for near-term delivery, concluded and executed before this date, or to the execution of contracts for the purchase, import or transfer of goods falling under CN 2710 concluded before 4 June 2022, subject to a notification requirement;
• to seaborne crude oil and of petroleum products where those goods originate in a third country and are only transiting through Russia, provided that both the origin and the owner of those goods are non-Russian;
• to crude oil falling under CN 2709 00 which is delivered by pipeline from Russia into Member States, until the Council decides otherwise. However, (1) such crude oil cannot be sold on to other Member States or third countries, and (2) from 5 February 2023, petroleum products produced from such crude oil cannot be sold on cannot be sold on to other Member States or third countries*.

* By way of a temporary derogation, the prohibition at (2) above shall apply to the import and transfer into Czechia, and to the sale to purchasers in Czechia, from 5 December 2023, unless alternative supplies of such products are made available before that date.

An exceptional temporary derogation is available for landlocked Member States for seaborne crude oil falling under CN 2709 00 if their supply via pipeline from Russia is interrupted.

The competent authorities in Bulgaria and Croatia are able to authorise the execution of contracts concluded before 4 June 2022 until 31 December 2024 and 31 December 2023 (respectively) absolutely (Bulgaria) or in certain circumstances (Croatia). However, those goods cannot be sold on to buyers located in another Member State or in a third country.

Trade restrictions – Russian oil/petroleum products - transport services

(new Article 3n)

Prohibition on the provision of technical assistance, brokering services or financing or financial assistance, related to the transport, including through ship-to-ship transfers, to third countries of crude oil or petroleum products (as listed in Annex XXV) which originate in Russia or which have been exported from Russia, subject to the following exceptions:

• the execution until 5 December 2022 of contracts concluded before 4 June 2022; or
• where such goods originate in a third country and are only transiting through Russia, provided that both the origin and the owner of those goods are non-Russian.

Financial restrictions – transactions with state-owned entities – new exceptions

(Article 5aa – amendment)

Amendments to the existing restriction on transactions with specified state-owned entities (Article 5aa / Annex XIX) (see 15 March / fourth package below) to introduce a number of new exceptions for:

• The receipt of payments from an Annex XIX entity pursuant to contracts performed before 15 May 2022.
• Unless prohibited by the new oil/petroleum products restrictions (Article 3m/3n – see above), transactions necessary for the purchase, import or transport of natural gas and oil, including refined petroleum products, titanium, aluminium, copper, nickel, palladium and iron ore from or through Russia into the EU, the EEA, Switzerland, or the Western Balkans.
• Transactions necessary for the wind-down, by 5 September 2022, of a joint venture or similar legal arrangement concluded before 16 March 2022 with an Annex XIX entity.
• Transactions necessary for the provision of electronic communications and data centre services and related equipment to an Annex XIX entity.

Financial restrictions – accepting deposits – new grounds for authorisation

(Article 5c – amendment)

Introduction of new grounds on which Member State competent authorities can authorise the acceptance of deposits over EUR100,000 (see 25 February/second package below) or the provision of certain crypto asset services valued over EUR10,000 (see 8 April/fifth package below), including:

• Basic needs
• Legal fees
• Fees for the holding/maintenance of frozen funds
• Necessary extraordinary expenses
• Official/diplomatic purposes.

Financial restrictions – sale of transferrable securities – amendment to exception

(Article 5f – amendment)

Financial restrictions – SWIFT access

(Article 5h / Annex XIV – amendment)

Extension of the prohibition on the provision of "specialised financial messaging services, which are used to exchange financial data" – i.e. SWIFT – to three further banks from 14 June 2022:

1. Sberbank
2. Credit Bank of Moscow
3. Rosselkhozbank

Various restrictions – amended exceptions/authorisation grounds - Russian natural gas/oil

(Various – see right)

Amendments / additions to the specified exceptions or grounds for authorisation for a number of existing prohibitions to allow for the purchase/import of Russian natural gas and oil, unless such purchase/import prohibited under the new Article 3m/3n prohibitions, as follows:

• The sale/supply etc of certain oil and gas goods/technology (as specified in Annex II) (Article 3)
• Investments in Russian energy sector (Article 3a)
• Port access (Article 3ea)
• Road transport of goods (Article 3l)
• The award of public or concession contracts (Article 5k)

Trust services – amendments

(Article 5m – amendments)

Amendment of the existing prohibition on the provision of trust services (see 8 April/fifth package below) to extend the deadline for the cessation of the provision of prohibited services:

• From 5 July 2022 it will be prohibited to, or arrange for another person to, act as a trustee/nominee/shareholders/director/secretary or similar for a prohibited trust/legal arrangement.
• Exception for operations which are necessary for the for the termination by 5 July 2022 of contracts which are not compliant with the prohibition concluded before 9 April 2022.
• Exemption from the prohibition if a trustor/beneficiary is a Member State national or resident.
• Member State competent authorities can authorise certain services to continue beyond 5 July 2022 in certain circumstances.

Business services – prohibition

(new Article 5n)

Prohibition on the provision of accounting, auditing, including statutory audit, bookkeeping or tax consulting services, or business and management consulting or public relations services to:

1.   the Government of Russia; or
2.   legal persons, entities or bodies established in Russia.

Exceptions for:

• the provision of services which are necessary for the termination by 5 July 2022 of prohibited contracts concluded before 4 June 2022.
• necessary legal services ("the exercise of the right of defence in judicial proceedings and the right to the right to an effective legal remedy")
• services provided to Russian entities which are owned or controlled, solely or jointly, a person/entity incorporated in the EU.

Authorisations available for humanitarian / human rights / civil society purposes.

Expansion of the lists of various categories of goods/technology which are subject to restrictions/prohibitions, as follows:

• Annex VII ("goods and technology which might contribute to Russia’s military and technological enhancement, or the development of the defence and security sector") – Articles 2a/2b
• Annex XXI ("goods which generate significant revenues for Russia") – Article 3i

Penalties for breach of asset freeze measures – amendment

(Article 8 – amendment)

Amendment to the requirement that Member States shall set out rules on penalties for infringing EU asset freeze measures, to include:

• that such penalties shall include "as appropriate criminal penalties"; and

• the inclusion of "appropriate measures of confiscation of the proceeds of such infringements".

12 individuals: including politicians, business people and family members, media employees and judge.

8 entities: including potash producers, a tobacco company, a vehicle manufacturer and a state television and radio broadcasting company

Extension of the prohibition on the provision of "specialised financial messaging services, which are used to exchange financial data" – i.e. SWIFT – to one further bank from 14 June 2022:

Belinvestbank (Belarusian Bank for Development and Reconstruction)

Amendment to the requirement that Member States shall set out rules on penalties for infringing EU asset freeze measures, to include:

• that such penalties shall include "as appropriate criminal penalties"; and
• the inclusion of "appropriate measures of confiscation of the proceeds of such infringements".

Announcement – proposal to freeze and confiscate assets of those violating restrictive measures

(See also: Q&A)

Proposal by the European Commission on freezing and confiscating assets of oligarchs violating restrictive measures and of criminals, as follows:

1. adding the evasion or violation of EU sanctions to the list of EU crimes; and
2. new reinforced rules on recovery and confiscation of criminal assets.

Making the violation of EU restrictive measures an EU crime

The Commission is proposing to add the violation of sanctions to the list of EU crimes. This will allow to set a common basic standard on criminal offences and penalties across the EU. In turn, such common EU rules would make it easier to investigate, prosecute and punish violations of EU sanctions in all Member States alike.

Read more in the European Commission's Proposal and Communication.

Reinforcing EU rules on asset recovery and confiscation to EU sanctions

The Commission is putting forward a proposal for a Directive on asset recovery and confiscation. The proposed rules will also apply to the violation of sanctions, ensuring the effective tracing, freezing, management and confiscation of proceeds derived from the violation of sanctions.

Read more in the European Commission's Proposal.

A collective commitment from the G7 to taking the following measures:

• Phasing out dependency on Russian energy, including by phasing out or banning the import of Russian oil;
• Prohibiting or otherwise preventing the provision of key services to Russia;
• Continuing to take action against Russian banks;
• Continuing efforts to fight off the Russian regime's attempts to spread propaganda; and
• Continuing and elevating measures against the financial elites and family members who support President Putin in his war, including imposing sanctions on additional individuals.

[The EU has announced measures in respect of each of these in its sixth package of restrictive measures – see below.]

Amendment to the three general export authorisations granted under Regulation (EU) 2021/821 which permitted exports of dual-use items to Russia in the following situations: (i) re-export of items after repair or replacement in the EU, (ii) export of items for fairs or exhibitions, and (iii) exports of telecommunications equipment.

This amendment removes Russia from the destination lists of those three EU general export authorisations in order to prevent Russia from gaining access to critical technologies and dual-use items.

Amendment effective on 5 May 2022.

Asset freeze – humanitarian

exemption/authorisation ⁵

Introduction of a new exception to the asset freeze restrictions: the prohibition on "making funds/economic resources available" to designated persons does not apply to organisations which act as humanitarian partners of the EU provided that the provision of funds/economic resources are required for humanitarian purposes in Ukraine.

Relevant Member State authorities can also grant specific of general authorisations for such humanitarian purposes. Deemed authorisation if not granted within 5 working days.

[EU FAQs on humanitarian aid published 2 May – accessible here]

Amendment to the existing trade restrictions applicable to the Donetsk and Luhansk regions to introduce exceptions for humanitarian purposes to the prohibitions on the goods/technology listed in Annex II (goods and technologies suited for use in the transport; telecommunications; energy; and oil, gas and mineral resources exploration/production).

Relevant Member State authorities can also grant specific of general authorisations for such humanitarian purposes.

[EU FAQs on humanitarian aid published 2 May – accessible here]

The Commission has updated the EU Air Safety List, which is the list of airlines that are subject to an operating ban or operational restrictions within the European Union, because they do not meet international safety standards.

21 airlines certified in Russia are now included on this list. This reflects serious safety concerns due to Russia's forced re-registration of foreign-owned aircraft, knowingly allowing their operation without valid certificates of airworthiness. This is in breach of international aviation safety standards.

8 April 2022

The EU's "fifth package" of restrictive measures

EU Q&A on this package of restrictive measures can be accessed here.

Commissioner for Justice, Didier Reynders urged "all Member States to take all the necessary measures to enforce sanctions and those who have not done so yet to report to the Commission without delay".

Member States are still in the process of compiling and sharing the information. Based on reports from more than half of the Member States to the Commission:

• €29.5 billion worth of assets have been frozen, including boats, helicopters, real estate and artwork, worth almost €6.7 billion.
• €196 billion of transactions have been blocked.

The Task Force will continue to meet regularly, the next meeting will take place on 22 April 2022.

216 individuals: including Government personnel, oligarchs and family members, business people, propagandists, Putin's daughters, members of the ‘People’s Council’ of Donetsk and ministers of Luhansk

18 entities: including a number of military, engineering and infrastructure companies and four banks:

• Otkritie FC Bank
• Novikombank
• Sovcombank
• VTB Bank

Two new derogations from the asset freeze measures - a competent authority may authorise the release of /making available frozen funds or economic resources belonging to:

• Otkritie Bank, Novikombank, Novcombank and VTB Bank if such funds or economic resources are necessary for the termination by 24 August 2022, of operations, contracts, or other agreements, including correspondent banking relations, concluded with those entities before 23 February 2022.
• a designated person/entity if: (i) the funds or economic resources are necessary for the sale and transfer by 9 October 2022 of proprietary rights in an entity established in the EU where those proprietary rights are directly or indirectly owned by a designated individual/entity; and (ii) the proceeds of such sale and transfer remain frozen.

Trade restrictions –coal ⁸

(including amendments to existing exemptions / derogations)

Prohibition on the purchase/import etc of coal and other solid fossil fuels (Article 3j / as listed in Annex XXII) into the EU if they originate in Russia or are exported from Russia, and associated technical/financial assistance or services.

Exemption until 10 August 2022 for contracts concluded before 9 April 2022.

Amendments to certain existing restrictions to remove exemptions / derogations for coal:

• Existing exemption to the restrictions on trade in certain goods/technology suited for oil exploration and production projects in Russia (Article 3 / as listed in Annex II) narrowed to remove reference to the transport of coal.
• Existing derogation from the restrictions on investments in Russian energy sector introduced on 15 March 2022 (see below) (Article 3a) narrowed to remove reference to the transport of coal.
• As regards the existing restriction on transactions with specified state-owned entities (Article 5aa / Annex XIX):

- existing general exemption narrowed to remove reference to transactions relating to the import/transport of coal

- new exemption introduced to exempt until 10 August 2022 transactions relating to the import/transport coal and other solid fossil fuels (as listed in Annex XXII).

Extension of the existing restrictions on trade goods/technology for use in aviation or the space industry (Article 3c) to cover jet fuel and fuel additives (as listed in Annex XX) whether or not originating in the EU, to any person/entity in Russia or for use in Russia.

[Note: the prohibitions on the provision of insurance/reinsurance and technical/financial assistance etc which apply to goods/technology for use in aviation or the space industry do not appear to have been extended to jet fuel and additives.]

New derogation: an authority may authorise activity if it is necessary to ensure lease repayments to an EU individual person/entity which does not fall under any of other EU Russian restrictive measures so long as no economic resources are made available to the Russian counterpart (aside from the return of the aircraft at the end of the lease).

[EU FAQs on insurance and reinsurance published 3 May 2022 – accessible here]

Prohibition on access to EU ports to vessels registered under the flag of Russia from 16 April 2022 (including those which have amended their flag/registration after 24 February 2022). Exemption for emergencies.

Authorisation may be granted for the transport/import into the EU of:

• natural gas and oil, including refined petroleum products, titanium, aluminium, copper, nickel, palladium and iron ore, as well as certain chemical and iron products (as listed in Annex XXIV)
• pharmaceutical, medical, agricultural and food products, including wheat and fertilisers (provided not otherwise prohibited)
• nuclear fuel and other goods strictly necessary for the functioning of civil nuclear capabilities
• coal and other solid fossil fuels (as listed in Annex XXII) until 10 August 2022

[EU FAQs updated on 27 April – accessible here.]

Prohibition on the purchase/import etc of certain specified goods (as listed in Annex XXI) which generate significant revenues for Russia into the EU if they originate in Russia or are exported from Russia, and associated technical/financial assistance or services.

Goods include:

• Crustaceans and caviar
• Cement
• Various chemicals
• Fertilisers
• Tyres, wood, paper and glass products
• Certain metals, incl. silver, aluminium and lead
• Turbines, ships and other craft

Exemption until 10 July 2022 for contracts concluded before 9 April 2022.
Other exemptions for certain specified annual quantities of potassium chloride and fertilisers (akin to tariff rate quotas / TRQs).

Prohibition on the sale/export etc of certain specified goods (as listed in Annex XXIII) which could contribute in particular to the enhancement of Russian industrial capacities to any person/entity in Russia or for use in Russia, and associated technical/financial assistance or services.

Annex XXIII contains a very long and detailed list of the relevant goods (with CN codes).

Exemption until 10 July 2022 for contracts concluded before 9 April 2022.

Authorisation possible for humanitarian purposes. Exemption for official/diplomatic purposes.

Prohibition on any Russian road transport undertaking to transport goods by road in the EU.

Exemptions for:

• mail as a universal service
• goods in transit though the EU between the Kaliningrad Oblast and Russia (provided not otherwise prohibited)
• until 16 April 2022 to the transport of goods that started before 9 April 2022, provided that the vehicle of the road transport undertaking: (a) was already in the EU on 9 April 2022, or (b) needs to transit through the EU to return to Russia

Authorisation may be available for:

• the transport into the EU of natural gas and oil, including refined petroleum products, titanium, aluminium, copper, nickel, palladium and iron ore
• the transport of pharmaceutical, medical, agricultural and food products, including wheat and fertilisers (provided not otherwise prohibited)
• humanitarian purposes
• diplomatic/consular purposes
• the transfer or export to Russia of cultural goods which are on loan in the context of formal cultural cooperation with Russia

[EU FAQs on road transport published on 14 April – accessible here]

Extension of the exemption to the prohibition on accepting deposits (see 25 February 2022 below) to the provision of crypto-asset wallet, account or custody services to Russian nationals/residents or entities if the total value of crypto-assets per wallet, account or custody provider exceeds EUR 10,000.

[EU FAQs on deposits published on 3 May – accessible here.]

Existing prohibitions (see 25 February below) on:

• the sale of euro-denominated transferrable securities issued after 12 April 2022 (or related collective investment undertakings) to Russian persons/entities; and
• the sale/supply of euro-denominated banknotes to Russian persons/entities (including the Russian government and Central Bank) or for use in Russia,

are expanded such that they applies to transferrable securities / banknotes denominated in any official currency of a Member State.

[As at 11 April 2022, Member States which have not adopted the Euro are: Bulgaria, Croatia, Czechia, Denmark, Hungary, Poland, Romania and Sweden. ¹⁹ ]

EU FAQs on banknotes published on 20 April– accessible here.

Prohibition on the award or continuation of any public or concession contract falling within the scope of the public procurement Directives and certain other Directives to/with:

1. a Russian individual/entity
2. any entity directly or indirectly owned more than 50% by a person/entity in a) or any person/entity acting at their direction/on their behalf.

The prohibition includes subcontractors/suppliers etc where they account for more than 10% of the contract value and where their capacities are being relied on within the meaning of the public procurement Directives.

Authorisations may be available for contracts intended for:

• civil nuclear facilities
• space programmes
• the provision of strictly necessary goods or services which can only be provided, or which can only be provided in sufficient quantities, by the persons at a) or b)
• diplomatic/consular purposes
• the purchase/import of natural gas and oil, including refined petroleum products, titanium, aluminium, copper, nickel, palladium and iron ore from or through Russia into the EU
• the purchase/import into the EU of coal and other solid fossil fuels (as listed in Annex XXII) until 10 August 2022.

Exemption until 10 October 2022 for contracts concluded before 9 April 2022.

Prohibition on the registration, provision of a registered office, business or administrative address, provision of management services to, a trust or any similar legal arrangement having as a trustor or a beneficiary:

1. Russian nationals/residents
2. entities established in Russia
3. entities which are owned (directly or indirectly owned more than 50%) or controlled by, a) or b), or are acting on their behalf/at their direction.

From 10 May 2022   5 July 2022 it will be prohibited to, or arrange for another person to, act as a trustee/nominee/shareholders/director/secretary or similar for such a trust. [Date amended on 3 June 2022 – see above.]

Exemption for actions which are strictly necessary for the termination by 10 May 2022  5 July 2022 of contracts concluded before 9 April 2022. [Date amended on 3 June 2022 – see above.]

Existing prohibitions (see 9 March below) on:

• the sale of euro-denominated transferrable securities issued after 12 April 2022 (or related collective investment undertakings) to Belarusian persons/entities; and
• the sale/supply of euro-denominated banknotes to Belarusian persons/entities (including the Government and Central Bank) or for use in Belarus,

are expanded such that they applies to transferrable securities / banknotes denominated in any official currency of a Member State.

[As at 11 April 2022, Member States which have not adopted the Euro are: Bulgaria, Croatia, Czechia, Denmark, Hungary, Poland, Romania and Sweden. ²⁴]

Prohibition on any Belarusian road transport undertaking to transport goods by road in the EU.

Exemptions for:

• mail as a universal service
• until 16 April 2022 to the transport of goods that started before 9 April 2022, provided that the vehicle of the road transport undertaking: (a) was already in the EU on 9 April 2022, or (b) needs to transit through the EU to return to Belarus

Authorisation may be available for:

• the transport into the EU of natural gas and oil, including refined petroleum products, titanium, aluminium, copper, nickel, palladium and iron ore
• the transport of pharmaceutical, medical, agricultural and food products, including wheat and fertilisers (provided not otherwise prohibited)
• humanitarian purposes
• diplomatic/consular purposes

EU Commission notice: In view of the risk of circumvention of EU sanctions measures, economic operators in the EU are advised to take adequate due diligence measures available in order to prevent circumvention of those measures

• via exports to third countries from where such goods can be diverted easily towards Russia and Belarus; particular attention has to be paid to exports of such goods to countries of the Eurasian Economic Union as goods in any member of the EAEU are in free circulation throughout the EAEU
• through imports from third countries from where the goods concerned can be diverted easily to the EU, in particular when such countries do not apply restrictions on imports from Russia and Belarus; this is in particular the case of goods imported from other EAEU countries.

The notice states that due diligence measures that exporters and importers are advised to take are, for instance the introduction in import and export contracts of provisions destined to ensure that any imported or exported goods are not covered by the restrictions.

The notice warns that operators should take into account that EU customs authorities may carry out more strict controls and may also request conclusive evidence that the concerned goods are not imported from or exported to Russia and Belarus via third countries.

[EU FAQs on circumvention and due diligence published 5 April – accessible here]

Commission recommendation regarding investor citizenship schemes (under which the nationality of a Member State, and thereby EU citizenship, is granted in exchange for a pre-determined payment or investment):

1. Such investor citizenship schemes are not compatible the Treaty on European Union. Any Member State operating such an investor citizenship scheme should repeal it immediately.
2. Member States should ensure that all appropriate checks are carried out so as to prevent investor residence schemes from operating in a way that could create risks linked to security, money laundering, tax evasion and corruption.
3. Any Member State that has naturalised Russian or Belarusian nationals based on an investor citizenship scheme should immediately assess whether these individuals' naturalisations should be withdrawn because the person: (i) is/becomes subject to EU sanctions; or (ii) significantly supports the war in Ukraine.
4. Member States should immediately withdraw, and refuse to renew, the residence permits granted on the basis of an investor residence scheme to Russian and Belarusian nationals satisfying 3(i) or (ii) above
5. Member States that operate investor residence schemes should suspend the issuance of residence permits on the basis of investor residence schemes to Russian and Belarusian nationals.
6. Member States should report to the Commission on the above.

Inaugural ministerial meeting of the Russian Elites, Proxies and Oligarchs Task Force (the "Task Force"). Joint statement confirmed:

• a commitment to prioritizing resources and working together to take all available legal steps to find, restrain, freeze, seize, and, where appropriate, confiscate or forfeit the assets of those individuals and entities that have been sanctioned in connection with Russia’s invasion of Ukraine; and
• a commitment to holding accountable those who have complicity in Russia’s unjust war and a determination to deny them the ability to hide and benefit from their assets in all jurisdictions and to undermine the integrity of the international financial system.

Signatories include representatives from: the US, Australia, Canada, France, Germany, Italy, Japan, the UK and the EU.

The EU has stated that the European Commission's "Freeze and Seize" Task Force, set up to ensure EU-level coordination to implement sanctions against listed Russian and Belarussian oligarchs, will work alongside the International Task Force.

15 March 2022

The EU's "fourth package" of restrictive measures

EU Q&A on this package of restrictive measures can be accessed here

15 individuals: oligarchs, senior business-people, propagandists including Roman Abramovich, German Khan, Victor Rashnikov and Alexey Kuzmichev

9 entities associated with ship-building, military, dual-use products and aircraft

Amendment to the existing restrictions on trade in certain goods suited for oil exploration and production projects in Russia (as listed in Annex II).

Prohibition on the sale/supply etc of the Annex II goods to any person/entity in Russia or for use in Russia (incl. its Exclusive Economic Zone and Continental Shelf) and associated technical/financial assistance or services.

The prohibition in does not apply:

• to the transport of fossil fuels (incl. coal, oil or natural gas) from/through Russia to the EU or in emergencies. [Exemption partially removed / amended on 8 April 2022 – see above]
• until 17 September 2022 to obligations arising from a contract concluded pre-16 March 2022, subject to a notification requirement.
• to the provision of insurance or reinsurance to any EU person/entity with regard to its activities outside the energy sector in Russia.

New prohibition on:

• the acquisition of new, or extension of existing, participation in any Russian entity or any third country operating in the energy sector in Russia.
• granting new loans or credit or other financing, including equity capital, to any Russian entity or any third country operating in the energy sector in Russia, or for the purpose of financing such an entity.
• the creation of a new joint venture with to any Russian entity or any third country operating in the energy sector in Russia.

"energy sector" means a sector covering the following activities with the exception of civil nuclear related activities:

1. the exploration, production, distribution within Russia or mining of crude oil, natural gas or solid fossil fuels, the refining of fuels, the liquefaction of natural gas or regasification;
2. b) the manufacture or distribution within Russia of solid fossil fuel products, refined petroleum products or gas; or
3. c) the construction of facilities or installation of equipment for, or the provision of services, equipment or technology for, activities related to power generation or electricity production.

Prohibition on

• the import of specified iron and steel products into the EU if they originate in Russia or have been exported from Russia.
• the purchase such products which are located in, or originate from, Russia.
• the transport of such products if they originated in Russia or are being exported from Russia to any other country.
• associated technical/financial services or assistance.

The prohibition shall not apply until 17 June 2022 to obligations arising from a contract concluded pre-16 March 2022.

Prohibition on the sale/supply/export etc of specified luxury goods to any person/entity in Russia or for use in Russia.

Unless otherwise specified, the prohibition only applies to goods valued over EUR 300 (per item).

Specified items includes: pure-bred horses, caviar, truffles, various alcoholic drinks, cigars, perfume, leather goods, clothing, precious stones and metals, coins and banknotes, electronics, vehicles, clocks and watches, art, sports equipment

[EU FAQs on luxury goods published on 9 April – accessible here]

Prohibition on engaging in any transaction, directly or indirectly, with 12 specified state-owned entities (as listed in Annex XIX):

1. OPK Oboronprom
2. United Aircraft Corporation
3. Uralvagonzavod
4. Rosneft
5. Transneft
6. Gazprom Neft
7. Almaz-Antey
8. Kamaz
9. Rostec
10. JSC PO Sevmash
11. Sovcomflot
12. United Shipbuilding Corporation

The prohibition extends to non-EU persons/entities which are owned more than 50% by the above entities, or a person/entity acting at their behalf etc.

The prohibition does not apply:

• until 15 May 2022 to obligations arising from a contract concluded pre-16 March 2022.
• transactions which are necessary for the purchase of fossil fuels, in particular coal, oil and natural gas, as well as titanium, aluminium, copper, nickel, palladium and iron ore from or through Russia into the EU.
• transactions relating to energy projects outside Russia in which the above entities are a minority shareholder

Prohibition on the provision of credit rating services or subscription services relating to credit rating activities to any Russian national/resident or entity.

Does not apply to EU nationals/residents.

[EU FAQs on credit rating published on 28 April – accessible here]

Trade – revocation of "most favoured nation" status

(announced but not yet implemented – G7 leaders' joint statement)

Denial of Russia's Most-Favoured-Nation (MFN) status relating to key products - the products of Russian companies no longer receive Most-Favoured-Nation treatment in those economies.

[Implemented in part (see above): On 15 March 2022, the EU confirmed that it had decided to act not through an increase on import tariffs, but through set of sanctions that comprise bans on the imports or exports of goods on the basis that "this is much quicker and more effective than preparing a completely new tariff schedule from scratch".]

Financial restrictions – removal of access to leading multilateral financial institutions

(announced but not yet implemented – G7 leaders' joint statement)

Prohibition on Russia from obtaining financing from the leading multilateral financial institutions, including the International Monetary Fund, the World Bank and the European Bank for Reconstruction and Development.

[On 15 March 2022, the EU stated that while Russia's membership of these institutions cannot often be suspended as such, it is working with its international partners to prevent Russia from obtaining financing from these institutions. For example, the EU is working with its partners to make sure that the EBRD suspends Russia and Belarus' access to EBRD finance and expertise.]

9 March 2022

The EU's "Compliance package" of restrictive measures

A number of financial prohibitions in respect of Belarusian public or state-owned entities, as follows:

• prohibition on transactions related to the management of reserves or assets of the Central Bank of Belarus, including transactions with any entity acting on its behalf/at its direction. Note: no start date – appears to apply immediately.
• prohibition on listing on EU trading venues (and providing services) for the transferable securities of any entity in established in Belarus and with over 50% public ownership from 12 April 2022.
• prohibition on prohibition on providing public financing or financial assistance for trade with, or investment in, Belarus, subject to certain exceptions (incl. pre-10 March 2022 commitments, investments of less than EUR 10 million for projects benefitting EU SMEs, and food/agriculture/humanitarian/medical purposes)

Definition of "transferrable securities" includes shares, bonds, other securities, and explicitly includes crypto assets.

Prohibition on accepting deposits from Belarusian nationals/residents, or entities established in Belarus in excess of EUR 100,000 per credit institution.

Exceptions for:

• nationals or, or persons having temporary residence in, an EU member state, EEA country or Switzerland; and
• deposits which are necessary for non-prohibited cross-border trade in goods and services between the Union and Belarus.

EU credit institutions are required to provide to the relevant authority a list of deposits exceeding EUR 100 000 held by Belarusian nationals/residents or entities by no later than 27 May 2022.

Prohibition on:

1. EU central securities depositories providing any "services" (as defined in the Annex to Regulation 909/2014) for transferable securities issued after 12 April 2022 to any Belarusian national/resident or entity.
2. the sale of euro denominated transferable securities issued after 12 April 2022 (or any exposure to such securities) to any Belarusian national/resident or entity.
   (exemption for 1 and 2 for EU nationals/residents.)
3. the provision of euro denominated banknotes to Belarus or to any Belarusian natural/resident or entity, incl. the Government and the Central Bank of Belarus, or for use in Belarus. Exemption for individual personal use and diplomatic/consular purposes.

[The restrictions at 2 and 3 were expanded on 8 April 2022 – see above – to apply to securities/banknotes denominated in any official currency of a Member State. EU FAQs on central securities depositories published on 11 April – accessible here.]

Prohibition from 20 March 2022 on the provision of "specialised financial messaging services, which are used to exchange financial data" – i.e. SWIFT – to three specified banks:

• Belagroprombank
• Bank Dabrabyt
• Development Bank of the Republic of Belarus’
• any Belarusian person/entity owned more than 50% by one of the above

 9 March 2022

The EU's "Compliance package" of restrictive measures

Clarification that "transferrable securities" includes crypto-assets.

Introduction of an exemption to the public financing restriction (see 25 February 2022 below) for financing up to EUR 10 million per project benefiting EU SMEs.

Prohibition on the sale/supply etc of specified maritime navigation goods/technology to any individual/entity in Russia, for use in Russia or for using on board a Russian-flagged vessel, and associated technical or financial assistance, brokering services etc.

Exemptions for non-military use, humanitarian purposes, health emergencies, natural disasters etc.

[EU FAQs on export restrictions on maritime navigation goods and technology published on 26 April – accessible here]

Amendment to the exemption to the prohibition on accepting EUR 100,000+ deposits for Russian nationals/entities (see 25 February 2022 below). Prohibition does not apply to nationals of EU Member States, EEA countries or Switzerland.

[Prohibition further amended on 8 April 2022]

The European Commission has today proposed an outline of a plan to make Europe independent from Russian fossil fuels well before 2030, starting with gas, in light of Russia's invasion of Ukraine. The "REPowerEU" plan is based on two pillars:

1. Diversifying gas supplies, via higher Liquefied Natural Gas (LNG) and pipeline imports from non-Russian suppliers, and larger volumes of biomethane and renewable hydrogen production and imports; and
2. Reducing faster the use of fossil fuels in our homes, buildings, industry, and power system, by boosting energy efficiency, increasing renewables and electrification, and addressing infrastructure bottlenecks.

2 March 2022

The EU's "third package" of restrictive measures (part 2)

Financial restrictions – SWIFT access ⁴⁴

Prohibition from 12 March 2022 on the provision of "specialised financial messaging services, which are used to exchange financial data" – i.e. SWIFT – to seven specified banks:

• Bank Otkritie
• Novikombank
• Promsvyazbank
• Bank Rossiya
• Sovcombank
• Vnesheconombank (VEB)
• VTB Bank

[Note: Sberbank and Gazprombank have been excluded from these restrictions.]

[EU FAQs on SWIFT published on 19 April – accessible here]

Financial restrictions – euro denominated banknotes ⁴⁵

Prohibition on the provision of euro denominated banknotes to Russia or to any person/entity in Russia, including the Government and the Central Bank of Russia, or for use in Russia.

• Exceptions: Personal use for individuals travelling to Russia/their families, and diplomatic/consular purposes.

Financial restrictions – Russian Direct Investment Fund ⁴⁶

Media ban ⁴⁷

Prohibition on operators broadcasting or facilitate the broadcasting of any content by Russia Today (English, UK, Germany, France, Spanish) and Sputnik by any means (such as cable, satellite, IP-TV, internet service providers, internet video-sharing platforms or applications), as well as the suspension of any licence or authorisation, transmission and distribution arrangement with those entities.

[EU FAQs on restrictions on Russian state-owned media published on 23 March – accessible here]

Asset freeze ⁴⁸

Trade restrictions – Belarus

(in view of the involvement of Belarus in the Russian aggression against Ukraine)

Prohibition on the sale/supply of:

• dual-use goods and technology, whether or not originating in the EU, to any person/body in Belarus or for use in Belarus, or any related technical or financial assistance.
• certain listed goods and technology which might contribute to Belarus’s military and technological enhancement, or to the development of its defence and security sector.

Exceptions for, for example, humanitarian, non-military, consumer communication, medical or temporary media use. Authorisations possible in certain circumstances.

28 February 2022

The EU's "third package" of restrictive measures (part 1)

Airspace ban ⁴⁹

Financial restrictions – Central Bank of Russia ⁵⁰

Prohibition on transactions related to the management of reserves as well as of assets of the Central Bank of Russia, including transactions with any person/entity acting on behalf of, or at the direction of, the Central Bank of Russia.

[Amended to include the Russian National Wealth Fund on 9 March 2022 – see above.]

[EU FAQs on the Central Bank of Russia published on 20 April – accessible here]

Asset freeze ⁵¹

25 individuals, including senior business-people (CEOs of Rosneft and Transneft), oligarchs (Alisher Usmanov, Petr Olegovich Aven, Alexander Ponomarenko, Gennady Nikolayevich Timchenko), Government ministers, journalists and senior military personnel.

One entity: Gas Industry Insurance Company SOGAZ

27 February 2022
(announced but not yet implemented) ⁵²

A new package of sanctions aimed at Lukashenko's regime, including:

• restrictive measures against important sectors, such as mineral fuels, tobacco, wood and timber, cement, iron and steel.

26 February 2022 ⁵³

Visa restrictions – "golden passports"

(implemented in part)

Introduction of measures to limit the sale of citizenship - so called "golden passports" - that let wealthy Russians connected to the Russian government become citizens of Western countries and gain access to their financial systems.

As to implementation:

• 9 March 2022: the requirement for EU financial institutions to provide certain information about individuals with "golden passports" (see above).
• 28 March 2022: Commission recommendation to Member States to review / repeal / suspend investor residence schemes, in particular in respect of Russian and Belarusian individuals (see above).
  
  

25 February 2022

The EU's "second package" of restrictive measures

Trade restrictions – dual-use, military and oil refining ⁵⁴

Ban on the sale/supply, and/or any related technical or financial assistance, in respect of:

1. dual-use goods and technology to any natural or legal person, entity or body in Russia or for use in Russia.
2. certain listed goods or technology which "might contribute to Russia's military and technological enhancement, or the development of the defence and security sector".
   

   (The supply of a) or b) for non-military purposes under pre-26 February 2022 contracts can be authorised pre-1 May 2022.)

3. certain listed goods or technology for use in oil refining (does not apply to contracts concluded pre-26 February 2022 until 27 May 2022).
4. certain listed goods or technology suited for use in aviation or the space industry, including the repair/modification of such goods (does not apply to contracts concluded pre-26 February 2022 until 28 March 2022).

There are certain exceptions, including for humanitarian, medical and/or consumer purposes (subject to approvals).

Ban on public funding/financial assistance ⁵⁵

Prohibition on the provision of public financing or financial assistance for trade with, or investment in, Russia, subject to certain exceptions:

• pre-26 February commitments;
• public financing/financial assistance of less than EUR10 million; and/or
• public financing/financial assistance for trade in food, and for agricultural, medical or humanitarian purposes

[Amended on 9 March 2022 – see above.]
 

Financial and investment restrictions (prohibition on new loans / dealing with securities) ⁵⁶

Extended the existing capital markets prohibition, as follows:

1. Prohibition on all dealings with transferable securities and money-market instruments (i) with a maturity exceeding 90 days, issued after 1 August 2014 to 12 September 2014; (ii) with a maturity exceeding 30 days, issued after 12 September 2014 to 12 April 2022; or (iii) any transferable securities and money market instruments issued after 12 April 2022, by:
• Sberbank, VTB Bank, Gazprombank, Vnesheconombank (VEB) and Rosselkhozbank (the "Annex III Banks"), or any person/entity owned (more than 50%) by, or acting at the direction of them [Note: These banks were previously subject to capital markets restrictions]; or
2. Prohibition on all dealings with transferable securities and money-market instruments issued after 12 April 2022 by:
• Alfa Bank, Bank Otkritie, Bank Rossiya, and Promsvyazbank (the "Annex XII Banks"), or any person/entity owned (more than 50%) by, or acting at the direction of them [Note: These banks were not previously subject to capital markets restrictions].
3. Prohibition on all dealings with transferable securities and money-market instruments (i) with a maturity exceeding 30 days, issued after 12 September 2014 to 12 April 2022; or (ii) any transferable securities and money market instruments issued after 12 April 2022, by:
• Oboronprom, United Aircraft Corp, Uralvagonzavod (with an exception for entities bodies active in the space or the nuclear energy sectors) (the "Annex V Entities") [Note: These entities were previously subject to capital markets restrictions];
• Rosneft, Transneft, and Gazprom Neft (the "Annex VI Entities") [Note: These entities were previously subject to capital markets restrictions];
• or any person/entity owned (more than 50%) by, or acting at the direction of the Annex V or VI Entities.
4. Prohibition on all dealings with transferable securities and money-market instruments issued after 12 April 2022 by:
• Almaz-Antey; Kamaz; Novorossiysk Commercial Sea Port; Rostec (Russian Technologies State Corporation); Russian Railways; JSC PO Sevmash; Sovcomflot; and United Shipbuilding Corporation (the "Annex XIII Entities"), or any person/entity owned (more than 50%) by, or acting at the direction of them.
  

  [Annex XIII Entities updated on 9 March 2022 to include the Russian Maritime Register of Shipping]

5. Prohibition on the listing by any trading venues in the EU of any transferrable securities by any Russian entity with more than 50 per cent public ownership.
6. Prohibition on being part of any arrangement to make:
• new loans or credit with a maturity exceeding 30 days, to any entity referred to in paragraphs 1 or 3 above, after 12 September 2014 to 26 February 2022; and
• any new loans or credit to any entity referred to in paragraphs 1 to 4 above after 26 February 2022,
subject to certain – very specific – exceptions, including in respect of pre-26 February 2022 contracts.

Financial restrictions - banking facilities/deposits ⁵⁷

Prohibition on:

• acceptance of deposits from Russian nationals/residents or entities established in Russia of over EUR 100,000. Authorisations available for, e.g. to satisfy basic needs.
• the provision by EU central securities depositories of services for transferable securities after 12 April 2022 to Russian nationals/residents or entities established in Russia.
• the sale of sell euro denominated transferable securities issued after 12 April 2022 or units in collective investment undertakings providing exposure to such securities to Russian nationals/residents or entities established in Russia.

Credit institutions are required to provide to the relevant authority in their Member States a list of a list of deposits exceeding 100 000 EUR held by Russian nationals/residents or entities established in Russia, including details of any natural persons who have acquired Member State nationality/residency.

[Exemptions amended on 9 March 2022 and 8 April – see above] EU FAQs on the updated restrictions published on 11 April 2022 – accessible here.

Additional basis for designation under Council Regulation (EU) No 269/2014 ⁵⁸

Added three additional grounds for designation under Annex I of Regulation 269/2014:

• persons/entities conducting transactions with the separatist groups in the Donbas region of Ukraine;
• persons/entities supporting, materially or financially, or benefitting from the Government of the Russian Federation; or
• leading businesspersons or persons/entities involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation.

Asset freeze  ⁵⁹

Visa restrictions ⁶⁰

Suspension of certain provisions of the Agreements  ⁶¹ between the EC/EU and Russia regarding the issuance of visas – essentially, those provisions allowing visa-free travel - including certain provisions in relation to:

• members of the Russian Federation's official delegations, national and regional Governments and Parliaments, Constitutional and Supreme Courts;
• Russian diplomats; and
• business people.

23 February 2022

The EU's "first package" of restrictive measures

Asset freeze ⁶²

22 individuals (incl. senior officials, ministers, military personnel and business persons)

Four entities: Internet Research Agency, Bank Rossiya, Vnesheconombank (VEB) and PROMSVYAZBANK (PSB)

Derogation: A competent authority may authorise the release of certain frozen funds or economic resources belonging to Bank Rossiya, Vnesheconombank (VEB) and PROMSVYAZBANK (PSB) such funds or economic resources are necessary for the termination by 24 August 2022, of operations, contracts, or other agreements, including correspondent banking relations, concluded with those entities before 23 February 2022. ⁶³

Asset freeze ⁶⁴

Financial and investment restrictions (prohibition on new loans / dealing with securities) ⁶⁵

• Russia and its government; and/or
• the Central Bank of Russia,

Sectoral sanctions - Donetsk and Luhansk regions ⁶⁶

Ban on the import of goods originating in the Donetsk and Luhansk regions of Ukraine into the EU, and any related financing or insurance in respect of the same.

Prohibition on the following in the Donetsk and Luhansk regions:

• the acquisition of real estate
• provision of financing to entities in those regions
• creation of a joint venture
• provision of investment services in respect of the same.

Ban on the trade of listed goods relating to transport; telecommunications; energy; production of oil, gas and mineral resources, to the Donetsk and Luhansk regions.

Prohibition on the provision of tourism services to the Donetsk and Luhansk regions.

[EU FAQs on oblasts pubished on 30 March – accessible here]