EU adopts fifth package of sanctions targeting Russia

On 8 April 2022 the EU adopted a fifth package of sanctions on Russia, comprising of several Regulations and Decisions.

Council Regulation 2022/576 and Decision (CFSP) 2022/578:

• Prohibits the purchase, import or transfer of coal and other solid fossil fuels (as listed in Annex XXII) into the EU if they originate in Russia or are exported from Russia, including in transit.  It is also prohibited to provide financial assistance (which is defined to include insurance and reinsurance) in respect of these goods.  This prohibition does not apply to the execution of contracts concluded before 9 April 2022, until 10 August 2022.
   
• Prohibits providing access after 16 April 2022 to ports in the EU to vessels registered under the flag of Russia (and to vessels that have changed their Russian flag or registration to the flag or register of any other state after 24 February 2022). There are certain exceptions i.e. in the event that a vessel is in need of assistance seeking a place of refuge, or an emergency port call for reasons of maritime safety, or for saving life at sea.  Despite this prohibition, the competent national authorities of an EU member state may authorize a vessel to access a port if it is deemed necessary for:

1. the purchase, import or transport of natural gas and oil into the EU including refined petroleum products, titanium, aluminium, copper, nickel, palladium and iron ore (as well as certain chemical and iron products as listed in Annex XXIV)
2. the purchase, import or transport of pharmaceutical, medical, agricultural and food products, including wheat and fertilizers
3. humanitarian purposes
4. the transport of nuclear fuel and other goods strictly necessary for the functioning of civil nuclear capabilities
5. the purchase, import or transport of coal and other solid fossil fuels into the EU (as listed in Annex XXII) until 10 August 2022.

• Prohibits the sale, supply, transfer or export of jet fuel and certain fuel additives and goods and technology which could contribute in particular to the enhancement of Russian industrial capacities which includes chemicals such as hydrogen, nitrogen oxygen, silicon and arsenic (as listed in Annex XXIII). This prohibition does not apply to the execution of contracts concluded before 9 April 2022, until 10 July 2022.
   
• Prohibits the purchase, import, or transfer into the EU of goods which generate significant revenues for Russia, including (among other things) wood, cement, fertilisers and seafood (as listed in Annex XXI). It also prohibits the provision of financial assistance in respect of such goods.  This prohibition does not apply to the execution of contracts concluded before 9 April 2022, until 10 July 2022.
   
• It extends the exemption from the prohibition to engage in transactions with certain Russian state-owned entities as regards transactions for the purchase, import or transport of fossil fuels and certain minerals to Switzerland, the European Economic Area and the Western Balkans.
   
• It also extends the exemptions from the prohibition on transaction with certain Russian state-owned enterprises and their subsidiaries to countries in the European Economic Area and Switzerland as well as to the Western Balkans.

Council Regulation (EU) 2022/581 and Council Decision (CFSP) 2022/582 designates an additional 216 individuals and 18 entities to the EU sanctions list which includes Bank Otkritie FC Bank,  Novikombank, Sovcombank, VTB Bank and JSC GTLK State Transport Leasing Company.

We strongly recommend that members keep the rapidly evolving sanctions against Russia under close review.  We will continue to closely monitor the situation and update you about any further developments. If you have any queries in the meantime, please contact your usual club contact.

Categories: Sanctions, Ukraine / Russia