On 24/06/2024, the EU has adopted the 14th package of sanctions against Russian. The 14th package includes the following elements: 

ENERGY-RELATED MEASURES 

  • Prohibition on providing goods, technology or services to liquified natural gas projects under construction in Russia, such as new terminals like Arctic LNG 2 or Murmansk LNG. 
  • Prohibition on the transshipment of Russian LNG through EU ports: this restriction prohibits Russian LNG from being transhipped via EU ports, as well as the provision of related technical services. A derogation can be requested for transshipment of LNG when the destination of the cargo is another Member State. The measure includes a 9-month wind-down. 
  • Prohibition on the import of Russian LNG into specific terminals which are not connected to the EU gas pipeline network. This will complement the measures under the Decarbonised Gases and Hydrogen package which allow Member States to limit the import of Russian gas into their national network, in line with the REPowerEU objectives. 
  • Listings of vessels supporting the Russian warfare: these vessels are prohibited from accessing ports and receiving services. 

ANTI-CIRCUMVENTION MEASURES 

  • Best efforts obligation concerning foreign subsidiaries: EU companies will have to undertake their best efforts to ensure that their subsidiaries in third countries do not take part in any activities undermining EU sanctions. 
  • “No Russia” clause for Intellectual Property Rights (IPR) transfers, to ensure that industrial know-how transferred outside the Union is not used to manufacture Common High Priority (CHP) goods intended for Russia. 
  • Due diligence requirements for CHP goods: EU companies will have to perform due diligence to prevent CHP goods from reaching Russia, and to ensure that their foreign subsidiaries trading in CHP goods do the same. 

ADDITIONAL LISTINGS 

  • A total of 116 additional listings of 69 individuals and 47 entities subject to asset freezes, and – in the case of individuals – also to travel bans. Listings touch upon various sectors of the Russian state, including military companies, companies active in space engineering, in the chemical sector or in the explosives sector and leading Russian energy companies.  

FINANCIAL SECTOR MEASURES 

  • Prohibition for EU banks outside Russia to connect and carry out transactions using the Financial Messaging System of the Central Bank of Russia (SPFS). SPFS is an initiative of the Central Bank of Russia aimed at avoiding international sanctions. Currently around 160 banks in the world are connected to SPFS.  
  • Prohibition on transactions with third-country banks using SPFS to increase Russia’s financial resilience and to support the circumvention of our sanctions. It will be prohibited for EU operators to engage with any of the listed third-country banks. 
  • Prohibition on transactions with banks and crypto assets providers, in Russia and third countries, that facilitate transactions supporting Russia’s defence-industrial base. It will be prohibited for EU operators to engage with any of the listed banks and crypto assets providers. 

TRADE-RELATED MEASURES 

EXPORTS 

  • Extension of the export restrictions on dual use/advanced technology items (e.g., “quadbikes”, microwave and aerial amplifiers and digital flight data recorders), aiming to further weaken Russia’s military capabilities. 
  • Reinforcement of the current export bans on industrial goods focusing on four sectors: chemicals, plastics, vehicles parts and machinery. 
  • Addition of 61 Russian and third-country entities to the list of entities associated to Russia’s military-industrial complex (including 33 entities registered in third countries: 19 in China/Hong Kong, 9 in Türkiye, 2 in Kyrgyzstan, 1 in India, 1 in Kazakhstan, 1 in UAE). 

IMPORTS 

  • Import ban on helium: Russia is substantially investing in its (energy-intensive) production of this component, which is key for the semiconductor and health industries.  
  • Finetuning of the import ban on Russian diamonds: clarifying that the ban does not apply to diamonds that were located in the EU or in a third country (other than Russia), or were polished or manufactured in such third country, before the ban on Russian diamonds entered into force (so-called ‘grandfathering’). Allowing temporarily imports or exports of jewellery, for example for trade fairs or repairs. Prolonging by six months (until 1 March 2025) the sunrise period after which the full-traceability scheme for imports of rough and polished natural diamonds will become mandatory. Postponing the ban on jewellery incorporating Russian diamonds processed in third countries other than Russia until the Council decides to activate the ban in the light of action taken within the G7 to pursue that measure. 
  • Extension of the Common High Priority (CHP) list: the CHP list, compiled by the EU and its international partners, was updated to include five HS codes concerning computer numerical control (CNC) machine tools used for weapons production. This update is now reflected in EU legislation. 

TRANSPORT MEASURES 

  • Aviation: prohibition on non-scheduled flights if a Russian person decides the origin or destination (regardless of ownership and control over the aircraft); introduction of uniform obligation to provide information about non-scheduled flights upon request of national authorities regarding aircraft ownership, passengers etc., also to avoid circumvention of the flight ban. 
  • Road: tightening the existing prohibition to transport goods by road in the EU, including transit, to EU-companies owned 25% or more by Russian persons. Current EU road transport undertakings owned 25% or more by Russian persons would no longer be allowed to transport goods. In addition, companies owned 25% or more by Russian persons would no longer be allowed to become EU road transport undertakings. 
  • Maritime: prohibition on port access and services for listed vessels. In the 14th package, 27 vessels are placed on this list, for their contribution to the Russian warfare in various sectors such as the transport of military equipment for Russia and the transport of stolen Ukrainian grain, participation in the dark fleet transporting Russian oil while conducting deceptive shipping practices, and support in the development of Russia’s energy sector, for instance through the transport of LNG infrastructure components or LNG transshipments. 

PROTECTION OF EU OPERATORS 

  • Legal basis for compensation claims in Member States courts: creation of a legal basis for EU operators to claim compensation in the EU for damages caused by Russian companies linked to sanctions implementation and expropriation. This will enable EU companies to recover such damages from the Russian counterpart’s possible assets in the EU. 
  • Transaction ban to protect arbitration: this new measure allows imposing a transaction ban on those Russian companies that meddle with arbitration and court competence rules. 

MEASURES PROTECTING INTELLECTUAL PROPERTY RIGHTS (IPR) 

  • Prohibition on the acceptance, by EU and Member States’ intellectual property offices and authorities, of applications for registration of, among others, new trademarks and patents requested by Russian persons and persons resident in Russia.   

MEASURES COMBATTING RUSSIAN INTERFERENCE 

  • Prohibition on accepting financing from the Russian state and its proxies by political parties, NGOs and media service providers in the EU.  

ADDITIONAL MEASURES 

  • Prohibition on EU and Member States funding to all Russian entities – and not only state-owned ones as was previously the case.  
  • Import ban on stolen Ukrainian cultural items. 

For guidance on implementation, clarifications, or any other information, please contact us at info@compliancemk.com.