On Monday 24 February, three years to the day since Russia invaded Ukraine, the EU Council adopted a 16th package of sanctions against Russia (see EUROPE 13583/1).
For the first time, the EU is imposing a transaction ban on three financial or credit institutions established outside Russia that use the Central Bank of Russia’s “Financial Messaging System” (SPFS). The provision of specialised financial messaging services is prohibited for 13 regional banks.
The Council is sanctioning 53 entities, a third of which are Russian, but also from China, including Hong Kong, India, Kazakhstan, Singapore, Turkey, the United Arab Emirates and Uzbekistan, which directly support Russia’s military-industrial complex.
Items intended for the development and production of Russian military systems, such as software for computer numerical control machines, chromium compounds and controllers used to guide UAVs, are also banned from export. Similarly, new restrictions have been imposed on exports of chemicals, certain plastics and rubber products, which contribute to the strengthening of Russian industrial capacities and their transit through Russia. Primary aluminium imports will be banned with a transitional period of 12 months, seeing the introduction of a quota mechanism, allowing 275,000 tonnes, or 80% of EU imports in 2024.
The EU has adopted additional sanctions on transport and oil and gas exploration. In particular, it is prohibited to supply goods, technologies and services for the implementation of crude oil projects in Russia, and to provide temporary storage of Russian crude oil and petroleum products within the EU, as well as construction services.
The EU broadcasting licences of eight Russian media outlets have been suspended: EADaily/Eurasia Daily, Fondsk, Lenta, NewsFront, RuBaltic, SouthFront, Strategic Culture Foundation and Krasnaya Zvezda / Tvzvezda.
Seventy-four vessels of the Russian shadow fleet, originating from third countries, are subject to sanctions, as are 48 individuals (including two North Korean military personnel) and 35 entities, including a Chinese company producing satellite images, “responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine”.
To combat the re-export of sanctioned goods, EU operators selling “sensitive goods to third countries other than partner countries” will have to implement due diligence mechanisms capable of identifying, assessing and mitigating the risks of such re-export to Russia. The Commission will help economic operators to facilitate their compliance.
In addition, the 16th package includes new measures against Belarus, reflecting the trade sanctions agreed against Russia and restrictions on the sale or supply of services and software, crypto-asset deposits and wallets and transport.
It also introduces new restrictions in Crimea and Sevastopol and in areas not controlled by the Ukrainian government in the Donetsk, Kherson, Luhansk and Zaporizhzhia oblasts, in order to prevent their integration into the Russian Federation and to prevent circumvention of EU sanctions.
See legal documents: https://aeur.eu/f/fmi (Original version in French by Camille-Cerise Gessant)