The Council adopted today a 15th package of economic and individual restrictive measures with the objective of further limiting Russia’s ability to wage its illegal, unprovoked and unjustified war of aggression against Ukraine.
These measures are designed to address the circumvention of EU sanctions through targeting of Putin’s shadow fleet and weaken Russia’s military and industrial complex.
It also includes substantial individual and entity listings related to the Russian military-industrial complex and increases the legal protection of EU Central Securities Depositories (EU CSDs). With this package, the EU has, for the first time, imposed ‘fully-fledged’ sanctions (travel ban, asset freeze and prohibition to make economic resources available) on various Chinese actors.
The 15th package contains these key elements:
ANTI-CIRCUMVENTION MEASURES
As Russia continues to look for ways to evade the Oil Price Cap, the EU is determined to strengthen measures to help prevent such evasion. Today’s package targets 52 new vessels from Russia’s shadow fleet, increasing the total number of such listings to 79. These vessels (non-EU) are subject to a port access ban and a ban on provision of services. These ships have been found to be engaged in high-risk shipping practices when transporting Russian oil or petroleum products, in arms deliveries, grain theft, or supporting the Russian energy sector.
This targeted approach by the EU increases the cost for Russia to use such vessels as they are no longer able to do business-as-usual in the EU or with EU operators. It also reduces the number of vessels in Russia’s shadow fleet that are able to carry Russian crude oil. Importantly, today’s listings also tackle the serious maritime safety and environmental risks posed by the often old and underinsured vessels of the shadow fleet. The EU will continue to closely monitor trade of Russian oil shifts and different practices designed to circumvent the oil price cap, both in terms of compliance by G7 operators and operations of the dark fleet.
ADDITIONAL LISTINGS
Today’s package includes 84 additional listings, including 54 individuals and 30 entities, responsible for actions undermining the territorial integrity, sovereignty, and independence of Ukraine. They are now subject to asset freezes, and – in the case of individuals – also to travel bans. Listings primarily affect Russian military companies that manufacture aircraft parts, drones, electronics, engines, high-tech components for weapons, and other military equipment. The listings also target a number of senior managers in companies active in the Russian energy sector (including shipping companies), providing important revenues to the Russian government.
The EU is also sanctioning the military unit responsible for the striking of the Okhmadyt children hospital in Kyiv as well as individuals responsible for children deportation and propaganda.
For the first time since the start of Russia’s invasion, the EU has adopted ‘fully-fledged listings’ (i.e. a travel ban, an asset freeze and a prohibition to make funds available) on seven Chinese persons and entities, namely one individual and two entities facilitating the circumvention of EU sanctions, and four entities supplying sensitive drone components and microelectronic component to the Russian military industry in support of Russia’s war of aggression against Ukraine.
Today’s listings also include two senior officials from the Democratic People’s Republic of Korea. This comes as a follow-up to the October European Council, G7 discussions on third countries’ continued support for Russia’s war of aggression, and the deployment of North Korean troops to Russia.
TRADE
This package also adds 32 new companies to the list of those supporting Russia’s military and industrial complex in its war against Ukraine (20 Russian firms, seven under Chinese/Hong Kong jurisdiction, two from Serbia, and one each from Iran, India and United Arab Emirates Emirates). Stricter export restrictions with respect to dual-use goods and technology, and advanced technology items, will now apply to them.
PROTECTING THE INTERESTS OF EU OPERATORS
Today’s measures include a prohibition to recognise or enforce in the EU some specific rulings issued by Russian courts that give exclusive mandatory competence to Russian courts in disputes between Russian and EU companies, regardless of the prior agreement of the parties. This will protect EU companies from the recognition of damages illegally awarded against them in Russia.
This new package also extends some existing derogations that enable EU operators to divest from Russia. While none of these derogations are new provisions, they will give more time to our companies to exit Russia.
FINANCIAL SECTOR MEASURES
In order to address the increasing litigation and retaliatory measures in Russia that result in the seizing of assets of EU Central Securities Depositories (CSDs), today’s package introduces two important amendments:
- A loss recovery derogation: This will allow for the release of cash balances held by EU CSDs. This derogation will enable CSDs to request competent authorities of the Member States to unfreeze cash balances and use them to meet their legal obligations with their clients.
- A no liability clause for EU CSDs: This clarifies that EU CSDs are not liable to pay interest or any other form of compensation to the Central Bank of Russia, beyond interest contractually due.
Background
EU sanctions remain at the core of the EU’s response to Russia’s unjustified military aggression against Ukraine, as they degrade Russia’s military and technological capability, cut the country from the most developed global markets, deprive the Kremlin from the revenues it is financing the war with, and impose ever higher costs on Russia’s economy. In this respect, sanctions contribute to fulfilling the EU’s key objective, which is to continue to work for a just and lasting peace, not another frozen conflict. Their effects grow over time as the sanctions erode Russia’s industrial and tech base. As guardian of the EU Treaties, the European Commission monitors the enforcement of EU sanctions by EU Member States.
Source: commission.europa.eu
