New Russia and Belarus sanctions: Economic and individual measures adopted by the EU
Due diligence-related measures
As part of the 16th sanctions package, 48 individuals and 35 entities have been added to the list of individuals and entities subject to an asset freeze and a prohibition on making funds and economic resources available to them. This is important to note as part of EU operators' continued due diligence obligations, especially in a know-your-customer (KYC) context.
Further, an additional 53 entities have been listed as being subject to tighter export controls on dual-use goods and technologies (etc), whereas a significant number of these – two thirds – consists of non-Russian actors such as entities in China, India, Kazakhstan, Singapore, Turkey/Türkiye, the United Arab Emirates, and Uzbekistan.
It becomes increasingly difficult for Danish businesses to engage in transactions – not only the ones involving Russia and Belarus, but also a vast number of other geographies considered "high-risk" by the European Union. Danish businesses should ensure adequate monitoring of their full value chain (upstream and downstream) to assess potential risks before they materialise, including indirect transactions.
Transport sectors affected
With reference to Russian seaborne oil exports revenue accounting for a significant part of Russia’s budget, the new sanctions include the following transport-specific measures:
- Existing transport restrictions are tightened, this time affecting transport of goods by road within the EU (including in transit) if conducted by an EU operator owned 25% or more by a Russian person or entity
- The EU flight ban has been widened to certain listed air carriers operating domestic flights within Russia and/or exporting aircraft or other aviation goods or technologies to Russian air carriers
- The so-called 'shadow fleets' of 74 Russian vessels in European territorial waters will also be subject to tighter restrictions
In addition to the above, transactions with certain listed ports, locks, and airports in Russia have been targeted if they are believed to have been used for the transfer of UAVs, missiles and related technology and components to Russia, or for the circumvention of the Oil Price Cap or other restrictive measures by vessels practising irregular and high-risk shipping practices.
Further, two new criteria have been introduced to allow the EU to impose restrictive measures on individuals and entities owning or operating Russian shadow fleet vessels and those supporting or benefitting from Russia's military and industrial complex.
Other sectors
Additional sanctions have been imposed, targeting areas such as finance and banking, including the System for Transfer of Financial Messages (SPFS) of the Central Bank of Russia, broadcasting bans for eight Russian media outlets, an extension of the list of certain restricted items (military, defence, security, and others), as well as energy-specific restrictions – in particular software related to oil and gas exploration.
In terms of materials sourcing, primary aluminium is restricted as well, whilst even videogame controllers used to pilot drones are affected by the latest measures.
Belarus sanctions
Overall, a number of amendments have also been adopted regarding the current Belarus Sanctions Regulation, generally aligning with the Russia Sanctions Regulation (mirroring trade-related aspects).
Our specialists
Our legal experts are monitoring the development of sanctions and remain available to answer any questions.