https://ploum.nl/uploads/eu-1049947_1280.jpg

EU publishes 12th sanctions package against Russia

22 Jan '24

In response to Russia's illegal annexation of Ukrainian territory in early 2022, the European Union ("EU") has adopted several sanctions packages against Russia in addition to those in place since 2014. These sanctions are intended to make it difficult for Russia to continue its war against Ukraine, and specifically target the political, military and economic elite responsible for the invasion.[1] Meanwhile, the war between Russia and Ukraine has been going on for almost two years, and on 18 December 2023, the EU adopted the 12th sanctions package against Russia.[2] Zoë Poortvliet discusses the outline of the sanctions measures in the 12th sanctions package against Russia.


[1] 'Infographic - Effects of sanctions on Russian economy,' consilium.euopa.eu
[2] 'Russian war of aggression against Ukraine: EU adopts 12e sanctions package', consilium.europa.eu

Legal framework

In cases where international peace and/or security is threatened, Article 21 of the Treaty on European Union ("TEU") empowers the EU to act and, under Article 29 TEU, to impose sanctions on countries, organisations, companies and/or individuals, such as[1] :

  1. Various forms of economic sanctions (such as a ban on importing or exporting certain goods, on providing certain services, etc.);
  2. Financial sanctions (freezing assets and economic resources of listed individuals or entities);
  3. Arms embargoes; and
  4. Restrictions on admission to EU territory.

The sanctions against Russia include import and export bans on certain goods and technologies, bans on providing certain services, bans on financing the Russian Federation and bans against circumventing EU sanctions.

In addition, the EU has added many Russian individuals and entities to its consolidated sanctions list by way of financial sanctions measures. Individuals and entities on this list are subject to restrictive measures; their assets are frozen and, in addition, it is forbidden - as an EU citizen or company - to (in)directly provide them with economic resources (anything of economic value). Doing business (in)directly with these persons and/or entities is therefore also not allowed.

Twelfth sanctions package

With the 12th sanctions package, the EU aims - in addition to the above - to make it even harder for Russia to continue the war. Among other things, the package oversees:

  1. Additional import and export bans

First, the EU expanded the list of goods subject to import and export bans. Thus, the list of goods that could contribute to the technological improvement of the Russian defense and security sector has been expanded to include: chemicals, lithium batteries, thermostats, DC motors and servomotors, machine tools and machinery parts.

In addition, the EU has introduced further restrictions on the import of goods that generate significant revenue for Russia and thereby support the continuation of the war against Ukraine. Products covered include pig iron, mirror iron, copper wires, aluminum wires and liquefied propane (LPG). There is also a ban on the import, or at least purchase or transfer, of (non-industrial natural and synthetic) diamonds from Russia.

  1. Additional measures against circumvention of EU sanctions

Furthermore, the EU has adopted additional measures against circumvention of EU sanctions. For example, EU exporters are required to include in their contracts a ‘No-Russia Clause’. This clause means that when selling, delivering, transferring or exporting to a third country, re-exporting to Russia and re-exporting for use in Russia of particularly sensitive goods and technology is prohibited.

Furthermore, the EU has extended the transit ban on dual-use goods and technologies exported from the EU to third countries via Russia to all battlefield goods. This should prevent products sent via Russia to third countries from remaining in Russia anyway.

  1. Additional Russian individuals and entities added to EU consolidated sanctions list

Lastly, the EU has added another 61 individuals and 86 entities to its sanctions list. The new placements include individuals and/or entities directly supporting Russia's military and industrial complex in its war of aggression against Ukraine, responsible for circumventing EU sanctions but also responsible for the forced takeover of Russia-based companies from the EU.[2]

Conclusion

The foregoing shows that with the 12th sanctions package much has changed, or at least will change, in terms of regulations concerning the situation with Russia. This underlines the importance for EU citizens and companies to regularly check that they are not - where relevant - in violation of these sanctions packages.

About Ploum's International Trade, Customs and Food and Commodities practice team

The specialists in our International Trade, Customs and Food and Commodities Practice team will be happy to assist you if you have any questions on this topic, or any other issues surrounding International Trade, Customs or Food Safety and Legislation. Due to our years of experience in International Trade and Logistics, among other areas, we can provide you with quick and effective service. If you have any questions on this topic, please contact one of our team members or contact Jikke Biermasz (j.biermasz@ploum.nl) or Marijn van Tuijl (m.vantuijl@ploum.nl) directly.


[1] 'Sanctions,' ecer.minbuza.com
[2] 'Twelfth sanctions package over Russian war of aggression against Ukraine: EU adds 61 individuals and 86 entities to sanctions list', consilium.europa.eu
 

Contact

Attorney at law, Partner

Jikke Biermasz

Expertises:  Customs, Transport law, Insurance law & Liability law, Food safety & product compliance , Customs, Trade & Logistics, Food, Transport and Logistics, Customs and International Trade, International Sanctions and Export Controls, E-commerce,

Attorney at law, Partner

Marijn van Tuijl

Expertises:  Food safety & product compliance , Customs, Transport law, Food, Transport and Logistics, Customs, Trade & Logistics, Customs and International Trade, Enforcement and sanctions, International Sanctions and Export Controls, E-commerce,

Paralegal

Zoë Poortvliet

Expertises:  Customs, Transport law, Food safety & product compliance ,

Share this article

Stay up to date

Click on the plus and sign up for updates on this topic.

Met uw inschrijving blijft u op de hoogte van de laatste juridische ontwikkelingen op dit gebied. Vul hieronder uw gegevens in om per e-mail op te hoogte te blijven.

Personal data

 

Company details

For more information on how we use your personal information, please see our Privacy statement. You can change your preferences at any time via the 'Edit profile' link or unsubscribe via the 'Unsubscribe' link. You will find these links at the bottom of every message you receive from Ploum.

* This field is required

Interested in

Personal data

 

Company details

For more information on how we use your personal information, please see our Privacy statement. You can change your preferences at any time via the 'Edit profile' link or unsubscribe via the 'Unsubscribe' link. You will find these links at the bottom of every message you receive from Ploum.

* This field is required

Interested in

Create account

Get all your tailored information with a My Ploum account. Arranged within a minute.

I already have an account

Benefits of My Ploum

  • Follow what you find interesting
  • Get recommendations based on your interests

*This field is required

I already have an account

Benefits of My Ploum

Follow what you find interesting

Receive recommendations based on your interests

{phrase:advantage_3}

{phrase:advantage_4}


Why do we need your name?

We ask for your first name and last name so we can use this information when you register for a Ploum event or a Ploum academy.

Password

A password will automatically be created for you. As soon as your account has been created you will receive this password in a welcome e-mail. You can use it to log in immediately. If you wish, you can also change this password yourself via the password forgotten function.