The European Union (EU) has announced the adoption of a 12th package of sanctions against Russia for its continued illegal war against Ukraine. This package focuses on imposing additional import and export bans on Russia, combating sanctions circumvention, and closing loopholes. Sanctions are regarded as a tool in the EU’s common foreign and security policy (CFSP) to respond to current or emerging crises.
Key Elements of the Sanctions Package
- Additional Listings: Over 140 individuals and entities, including those in the Russian military and defense sectors, IT sector, and economic actors, are now subject to asset freezes. This extends to those involved in illegal “elections” in occupied Ukrainian territories and the forced “re-education” of Ukrainian children.
- Trade Measures:
- An import ban on Russian diamonds, aligning with the G7’s coordinated diamond ban, aims to cut off a revenue stream estimated at €4 billion per year.
- New import bans on raw materials for steel production, processed aluminum products, and other metal goods.
- Additional export restrictions on dual-use and advanced technological goods worth €2.3 billion per year to weaken Russia’s military capabilities.
- Stricter Asset Freeze Obligations:
- New listing criterion targeting those benefiting from the forced transfer of ownership or control over Russian subsidiaries of EU companies.
- Obligations for Member States to proactively trace assets of listed persons.
- Energy Measures:
- Tightening of the international G7+ oil price cap with new measures to monitor tanker sales and detailed attestation requirements.
- New import ban on liquified petroleum gas (LPG), impacting annual imports worth over €1 billion.
- Stronger Anti-Circumvention Measures:
- Broadening the scope of the transit prohibition through Russia.
- Obligation to prohibit re-export of sensitive goods to Russia.
- Notification requirements for certain fund transfers out of the EU by entities with significant Russian ownership.
- Additional and Technical Measures:
- Derogations for specific circumstances such as compensations for damages and the sale of EU companies owned by certain listed individuals or entities.
- A technical amendment for the provision of pilot services for maritime safety.
Background and Impact
The EU’s sanctions are central to its stance alongside Ukraine, aimed at imposing costs on Russia’s economy and deterring its military aggression. The sanctions, over time, are expected to erode Russia’s industrial and technological base. The EU continues to ensure that these sanctions do not impact energy and agrifood exports from Russia to third countries. Efforts are also being made to tackle Russia’s attempts at circumventing these sanctions, with EU Sanctions Envoy David O’Sullivan leading outreach to key third countries.
Conclusion
This latest package of sanctions represents a robust and strategic approach by the EU to support Ukraine, targeting key Russian sectors and individuals and reinforcing the global effort to seek a just and lasting peace in the region. The EU remains vigilant in enforcing these sanctions and collaborating with international partners to prevent their circumvention.
