EU Adopts Another Round of Sanctions Against Russia

On the third-year mark of Russia’s full-scale invasion of Ukraine, the European Union (EU) adopted another comprehensive package of economic sanctions against Russia. The package targets crucial sectors of the Russian economy, intended to further impair the regime’s ability to wage its illegal war against Ukraine.

Listings

The EU is listing 83 natural and legal persons responsible for actions undermining or threatening the territorial integrity, sovereignty, and independence of Ukraine. It’s prohibited to make resources available to those persons. Their assets located within the territory of the European Union will be frozen.

Further vessels were added to the list of those subject to a port-access ban and ban on provision of a broad range of services related to maritime transport. This measure aims at non-EU tankers that are part of Russia’s shadow fleet evading the oil price cap mechanism or vessels transporting military equipment for Russia or stolen Ukrainian grain.

Banking sector

A transaction ban was imposed on credit or financial institutions established outside Russia that use the financial messaging service developed by the Central Bank of Russia. Furthermore, the EU is extending the prohibition on the provision of specialized financial messaging services (SWIFT) to 13 regional banks considered to be important for the Russian financial and banking systems.

Trade

53 new entities were added to the list of those directly supporting Russia’s military and industrial complex in its war of aggression against Ukraine. They will be subject to tighter export restrictions concerning dual-use goods as well as goods which might contribute to the technological enhancement of Russia’s defense and security sector. Some of these entities are located in China including Hong Kong, India, Kazakhstan, Singapore Türkiye, the United Arab Emirates and Uzbekistan. They have been involved in the invasion of trade sanctions or have engaged in the procurement of sensitive items for the Russian military such as UAVs and missiles.

Additionally, trade-related measures include the following:

• expanding the list of restricted items that contribute to the technological enhancement of Russia’s defense and security sector by adding certain riot control agents, software for CNC machines, chromium compounds and controllers for UAVs;
• restricting the exports of further goods which contribute to the enhancement of Russian industrial capabilities (such as certain chemicals, plastics, and rubber) and their transit through Russia;
• imposing restrictions on the import of primary aluminum from Russia, a measure that is supposed to significantly diminish Russia’s revenues.

Transport sector

The EU is prohibiting any transaction with certain listed ports, locks, and airports in Russia that are used for the evasion of sanctions or the transfer of UAVs, missiles, and related components to Russia. Moreover, the EU is widening the flight ban to air carriers exporting aircraft or other aviation goods and technology to Russian air carriers, and forbidding any changes to the capital structure of road-transport undertakings that would increase the percentage share owned by a Russian natural or legal person to 25 percent or more.

Energy and construction sectors

The package imposes further restrictions on exports of software related to oil and gas exploration to limit Russia’s exploration and production capacities. Additionally, it bans the provision of goods, technology, and services for the completion of crude-oil projects in Russia as well as the temporary storage for Russian crude oil and petroleum products within the EU. It also prohibits the provision of construction services to the Russian government, its organs, and agencies.