EU 5th Russia sanctions package - Short overview
The EU has published on 8 April 2022 its 5th sanctions package against Russia.
Here are the new sanctions:
Freezing of funds
216 individuals and 18 entities have been added to the list of persons, entities and bodies subject to restrictive measures set out in Annex I to Regulation (EU) No 269/2014.
These are:
leading businesspersons involved in economic sectors providing a substantial source of revenue to, and on persons supporting or benefitting from, the Government of the Russian Federation and on natural persons associated with those persons, including family members unduly benefitting from them
the Ministers and members of the ‘People’s Council’ of the so-called ‘Donetsk People’s Republic’ and ‘Luhansk People’s Republic’
companies supporting, materially or financially, or benefitting from the Government of the Russian Federation and materially or financially supporting actions which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine
A derogation to the assets freeze has been introduced for diplomatic missions. The condition is that the funds or economic resources concerned are to be paid into or from an account belonging to or held by a diplomatic mission, consular post or international organisation enjoying immunities in accordance with international law, in so far as such payments are intended to be used for official purposes of the diplomatic mission, consular post or international organisation
Legal Source: Council Decision (CFSP) 2022/582 of 8 April 2022. Council Implementing Regulation (EU) 2022/581 of 8 April 2022. Council Regulation (EU) 2022/580 of 8 April 2022.
Trade sanctions
Defence-related products
In Decision , the EU had foreseen an exception to the ban on export of arms and related materiel of all types, including weapons and ammunition, military vehicles and equipment, paramilitary equipment, and spare parts therefor, to Russia.
The exception was intended for the purpose of the execution of contracts concluded before 1 August 2014 or ancillary contracts necessary for the execution of such contracts, and to the provision of spare parts and services necessary for the maintenance and safety of existing capabilities within the Union. The same was for technical and financial assistance related to such export.
This exception has now been lifted.
Other goods
The EU has introduced restrictive measures on:
goods which generate significant revenues for Russia thereby enabling its actions destabilising the situation in Ukraine
coal and other solid fossil fuels, to be imported for Russia
goods which could contribute in particular to the enhancement of Russian industrial capacities
jet fuel and additives
It has amended or introduced certain derogations in relation to the existing restrictions on:
dual-use goods and technologies,
goods and technologies which might contribute to Russia’s military and technological enhancement or the development of its defence and security sector,
goods and technology suited for use in aviation or the space industry,
luxury goods
The EU has prohibited access to ports in the territory of the European Union to vessels registered under the flag of Russia.
Finally, it should also be prohibited to any road transport undertaking established in Russia to transport goods by road within the territory of the European Union, including in transit.
It has also extended the exemption from the prohibition to engage in transactions with certain State-owned entities to Switzerland, the European Economic Area and the Western Balkans. The EU expects the swift and full alignment of all countries in the region with EU restrictive measures, including those concerning Russia’s actions destabilising the situation in Ukraine.
Financial sanctions
The EU has introduced further restrictive measures. In particular, it has:
extended the prohibition on deposits to crypto-wallets,
extended the prohibitions on the export of euro-denominated banknotes and on the sale of euro-denominated transferrable securities to all official currencies of the Member States
prohibited the award and continued execution of public contracts and concessions with Russian nationals and entities or bodies established in Russia.
prohibited the provision of support, including financing and financial assistance or any other benefit from a Union, Euratom or Member State programme to Russian publicly owned or controlled entities.
introduced a prohibition on being a beneficiary, acting as trustee or in similar capacities for Russian persons and entities, as well as a prohibition on providing certain services to trusts.
Legal Source: Council Decision (CFSP) 2022/578 of 8 April 2022. Council Regulation (EU) 2022/576 of 8 April 2022.