The EU's 16th sanctions package against Russia

EU Regulation 269/2014

Listings:

• Asset freeze sanctions have been imposed on 48 individuals and 35 entities (Annex I).
• Two new criteria for the listing of individuals and entities subject to asset freeze sanctions, targeting those: who support the operations of unsafe oil tankers; and that are part of or support or benefit from Russia's military and industrial complex (Art 3(1)). 

Best efforts: A ‘best efforts' clause concerning non-EU subsidiaries of EU companies has been added (Art 15a).

Certain horizontal provisions have been added to Regulation 269/2014 which align with changes made in EU Regulation 833/2014.

EU Regulation 833/2014

Trade in goods:

• 50+ new entities have been added to the list of those identified as supporting the Russian military-industrial complex or engaged in sanctions circumvention (Annex IV). There is now a clear prohibition on the export of dual-use goods and technology and goods and technology that contribute to the technological enhancement of Russia’s defence and security sector to the listed persons (Art 2b).
• The list of restricted items that contribute to the technological enhancement of Russia’s defence and security sector has expanded to include chemical precursors to riot control agents, software related to computer numerical control machines, chromium compounds and controllers used to guide unmanned aerial vehicles (Art 2a and Annex VII).
• The limited exemptions and derogations from the prohibitions to export dual-use goods and technology and goods and technology that contribute to the technological enhancement of Russia’s defence and security sector have been tightened (Arts 2 and 2a).
• A new ban on imports of Russian unwrought aluminium or the provision of related assistance. Two exemptions contain import quotas which gradually phase out imports until the end of 2026 (Art 3i).
• Additional bans on the export to Russia of certain industrial goods, specifically targeting minerals, chemicals, steel, glass materials, and fireworks, and provision of related assistance (Art 3k(1) and Annex XXIII). There is an exemption relating to certain goods for wind-down until 26 May 2025 (Art 3k(3ag) and Annex XXIIID). Derogations allowing competent authorities to issue licences in relation to certain goods are available (Art 3k).
• The list of goods and technology subject to the prohibition on transit via Russia has expanded (Art 3k(1a) and Annex XXXVII).
• New derogations allow Member State authorities to issue a licence for the import or export of certain goods and provision of related assistance for the maintenance or repair of the Druzhba pipeline (Arts 3i and 3k).
• Imports of rough diamonds must be accompanied by a certificate which clearly states the country/countries of mining origin. The date of entry into force of the requirement to provide traceability-based evidence for imports of polished diamonds has been postponed until 1 January 2026 (Art 3p).

Trade in services:

• The services ban has been extended to the provision of construction services and related assistance to the Government of Russia and Russian entities (Art 5n).
• A clear ban on the transfer of intellectual property rights and trade secrets related to prohibited software (Art 5n).
• A new derogation allows Member State authorities to issue a licence for the provision of construction, architectural, engineering, legal advisory and IT consultancy services relating to diplomatic purposes (Art 5n).

Transport:

• Flight ban: The existing flight ban has been expanded to certain listed air carriers and any entity owned or controlled by such air carrier. This provides a possibility to list third-country airlines operating domestic flights in Russia or supplying aviation goods to Russian airlines or for domestic flight in Russia. The exemption for recreational/ training flights from the flight ban has been limited to manned aircraft, and authorisation from Member State authorities is required in relation to certain drone operations (Art 3d).
• Road: A ban on increasing Russian ownership in EU entities operating as road transport undertakings to 25% or more (Art 3l).
• Vessels: 74 vessels have been added to the list of sanctioned vessels (total 153) that are banned from entering ports in the EU and banned from receiving EU services such as insurance and technical assistance (Art 3s and Annex XLII).
• Ports, locks and airports (Art 5ae and Annex XLVII):
  • A new ban on direct and indirect transactions with five Russian ports (Astrakhan, Machkala, Ust-Luga, Primorsk, Novorossiysk). Limited exemptions are available allowing transactions for humanitarian, pharmaceutical, medical, agricultural and civil nuclear purposes, and for imports of certain goods (natural gas, titanium, aluminium, copper, nickel, palladium and iron ore) and certain oil and petroleum products.
  • A new ban on direct and indirect transactions with six Russian airports (Begishevo, Vnukovo, Zhukovsky, Perm, Koltsovo, Pskov). Limited exemptions are available allowing transactions for humanitarian, policy, emergency, diplomatic, personal travel, pharmaceutical, medical and agricultural purposes.
  • The operator must inform (within 2 weeks) the Member State competent authority where they are incorporated of any transaction which relies on the exceptions. The Member State shall inform other Member States and the Commission within a further 2 weeks.

Energy sector:

• The ban on supply of goods supporting Russia's oil and gas industry has been expanded to cover software for oil and gas exploration purposes and related assistance. There is an exemption for wind-down until 26 May 2025. Derogations allow Member State authorities to issue a licence if the provision of assistance is necessary for ensuring critical energy supply within the EU or intended for the exclusive use of entities owned or controlled by an EU entity (Art 3 and Annex II).
• Crude oil and petroleum products:
  • A new ban on the temporary storage in the EU of certain Russian origin / Russian exported crude oil or petroleum products. The ban applies even if the oil price cap is respected, and the buyer is outside the EU. Exemptions are available for: wind-down until 26 May 2025; Member States which benefit from existing exemptions; and deliveries of non-Russian origin / non-Russian owned sea-borne crude oil and petroleum products (Art 3nb).
  • A ban on the supply of goods, technologies and services for the completion of crude oil projects in Russia, such as the Vostok oil project. There are limited exemptions for wind-down until 26 May 2025, or where commercial oil production has already commenced (Art 3t).
  • A new derogation allows Member State authorities to issue a licence for the export from Slovakia to Hungary or vice versa of certain petroleum products exported by pipeline and for exclusive use in those Member States (Art 3m).
• LNG:
  • Clarification that reloading services for the purposes of transshipment operations of Russian LNG between ports of the same Member State are allowed (Art 3r).
  • A licence can be granted by a Member State that is not connected to the interconnected natural gas system when the Russian LNG is imported from another Member State that is connected (Art 3u).

Financial sector:

• A transaction ban has been imposed on 3 banks for using the Central Bank of Russia's specialised financial messaging services to circumvent EU sanctions (Bank BelVEB, Belgazprombank, VTB Bank (PJSC) Shanghai Branch). Certain derogations are available for transactions with Bank BelVEB (Art 5ac).
• Extension of the prohibition on the provision of specialised financial messaging services to an additional 13 financial institutions as of 17 March 2025 (Art 5h and Annex XIV).
• The ban on transactions with third country financial institutions and crypto assets providers has been extended to certain entities that support the listed vessels of the shadow fleet and participate in the circumvention of the oil price cap (Art 5ad).
• A new derogation for the acceptance of deposits otherwise restricted for operations necessary for the restructuring or liquidation of a legal person associated with VTB Bank (Art 5c).

Broadcasting: EU broadcasting licences for 8 Russia media outlets have been suspended (Art 2f and Annex XV).

Due diligence: The due diligence requirements for EU entities to prevent re-export of certain goods to Russia (and ensure that their foreign subsidiaries do the same) have been expanded to cover two additional items which are found in Iranian and Chinese drones used by Russia and already under export prohibitions (Art 12gb). The new requirements apply from 26 May 2025.

Cooperation between authorities: New provisions in relation to the exchange of information on potential sanctions violations regarding financial intelligence units in Member States and with like-minded third countries, and the processing of personal data (Arts 6 and 12a of EU Reg 833/2014 and Arts 8, 8a and 12(1) of EU Reg 269/2014).

Damages: The scope of the provisions that allow EU operators to claim for damages suffered because of a decision based on certain Russian legislation, or legal actions related to contracts the performance of which have been affected by the sanctions, have been broadened. A new legal basis for EU courts to hear claims when the national rules do not foresee such jurisdiction (Arts 11a, 11b, 11c and 11d of EU Reg 833/2014 and Arts 11a and 11b of EU Reg 269/2014).

OUR TEAM

Fieldfisher's experienced multi-disciplinary sanctions and export control team includes lawyers who have negotiated and drafted EU and UN sanctions regimes in Government and regularly provide sanctions advice to businesses operating around the world in a wide variety of sectors. We work closely with US partners to provide coordinated, comprehensive and practical advice to help business understand and manage the impact of sanctions. 

For more information please contact Andrew Hood (Partner, International Trade): Andrew.hood@fieldfisher.com +44(0)330 460 6568
 
* The contents of this notice do not constitute legal advice and are provided for general information purposes only.