The 15th Sanctions Package against Russia

The European Commission welcomes the EU Council's adoption of the 15th sanctions package against Russia, aimed at curbing sanctions circumvention and targeting Russia's shadow fleet. This package includes extensive individual and entity listings, trade restrictions, and measures to protect EU operators.

Key Highlights of the Package:

Anti-Circumvention Measures:

The EU Council clarifies that, in order to further constrain the activity of vessels operated to contribute or support actions or policies supporting Russia’s actions against Ukraine, the package targets 52 new vessels from Russia's shadow fleet (originating from third countries) involved in risky shipping practices, increasing the total of vessels set out in Annex XVI to 79. On these ships a ban from Member States’ ports and locks, as well as a ban on the provision of a broad range of services related to maritime transport, are imposed.

This measure is intended to target non-EU tankers that are part of Russia’s shadow fleet circumventing the oil price cap mechanism or support the energy sector of Russia, or vessels that are responsible for transporting military equipment for Russia or involved in the transport of stolen Ukrainian grain.

Additional Listings:

Sanctions against 84 individuals and entities, including military-industrial companies, energy sector actors, and individuals.

For the first time, "fully-fledged" sanctions (travel ban, asset freeze, and economic restrictions) are imposed on seven Chinese actors for facilitating sanctions evasion and supplying drone components to Russia.

Two North Korean officials are also included following concerns over North Korean support for Russia's war effort.

Trade Restrictions:

Stricter export controls on dual-use and high-tech items targeting 32 companies, including firms in Russia, China, Serbia, Iran, India, and the UAE.

Financial Sector Measures:

Introduces measures to help EU Central Securities Depositories (CSDs) recover losses and clarifies their limited liability concerning Russia's Central Bank.

Prohibition on the recognition or enforcement in the Union of court decisions pursuant to Art.248 of Russian Arbitration Procedure Code.

Russian courts have issued decisions based on Article 248 of the Arbitration Procedure Code of the Russian Federation that prohibit the initiation or continuation of proceedings in foreign courts or tribunals on the part of European companies against Russian companies (anti-suit injunctions) and have issued high financial penalties in cases of failure to comply. In order to prevent efforts by claimants to enforce such anti-suit injunctions or fines, or any other court decision based on Article 248 or equivalent Russian legislation, the package introduces by the new art. 11 quater Reg. 833/2014 a prohibition on the recognition or enforcement in the Union of injunctions, orders, judgments or other court decisions pursuant to or in relation to Article 248 of the Arbitration Procedure Code of the Russian Federation or equivalent Russian legislation

Protecting EU Operators:

Lastly, the EU extended the deadlines applicable to certain derogations needed for divestments from Russia. Because of the risks of maintaining business activities in Russia, EU operators should consider winding down businesses in Russia and/or not to start new businesses there. The exceptional extension of the divestment derogations is necessary to enable EU operators to exit as swiftly as possible from the Russian market.

For more information read Link to Official Journal? (legal texts will be available soon)