EU restrictive measures relating to actions in Ukraine

On 18 December 2023 the 12^th package of sanctions against Russia was adopted. The focus of this package is to impose additional import and export bans on Russia, combat sanctions circumvention and close loopholes.

In particular, this package includes additional listings of Russian individuals and companies and new import and export bans, such as banning the export of Russian diamonds to Europe, in very close cooperation with G7 partners. Moreover, the package tightens the implementation of the oil price cap by monitoring more closely how tankers may be used to circumvent the cap. It also includes stricter asset tracing obligations and tougher measures on third-country companies circumventing sanctions.  

The 12^th package has inter alia:

Sectoral measures - amendments to existing sanctions regime – Council Regulation 2023/2878 amends EU Regulation no 833/2014

Reporting Obligations and prohibitions

The 12^th package imposes inter alia: notification requirements for the transfer of funds outside the EU by any entity established in the EU; including Special Purpose Entities; that are 40% owned or controlled by an entity established in Russia, or by a Russian national or natural person residing in Russia;

It further seeks to limit circumvention of the prohibition on the provision of crypto-asset wallets, account or custody services to Russian persons and residents by including a ban on Russian nationals or natural persons residing in Russia from owning or controlling, or holding any posts on the governing bodies of, the legal persons, entities or bodies providing such services.

Introduces a derogation enabling the granting of loans or credits to entities operating in the Russian energy sector which are subject to the transaction ban provided for in Regulation (EU) No 833/2014, under the conditions provided.

Asset Freeze Provisions - amendments to existing sanctions regime – EU Regulation no 2023/2873 amended EU Regulation no 269/2014

Additional Listings

The decision introduces the possibility to keep deceased persons on the asset freeze list, in order to prevent the freezing measures from potentially being undermined.

There is also a new listing criterion to include persons who benefit from the forced transfer of ownership or control over Russian subsidiaries of EU Companies.  This will ensure that no one profits from the losses that EU companies face when their subsidiaries are forcibly acquired by Russian owners/management.

A further 140 person, 61 persons and 86 entities have been listed. Three Russian banks have been added to the list of entities subject to the asset freeze and the prohibition to make funds and economic resources available.

Reporting Obligations

In order to ensure the effectiveness of the asset freeze prohibitions, the Council decided to introduce more detailed reporting obligations on funds and economic resources belonging to listed individuals and entities which have been frozen or were subject to any move shortly before the listing. The Council also introduced new reporting obligations to the Member States and to the Commission on immobilized reserves and assets of the Central Bank of Russia.

Further information and background to these measures can be found on the EC Council Website and the Department of Foreign Affairs Website.

On 23 June 2023, the EU adopted an eleventh package of sanctions. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2023/1215 and Council Implementing Regulation 2023/1216)
  Council Regulation 2023/1215 introduces a further criterion for the listing of natural or legal persons, entities or bodies subject to the asset freeze and the prohibition on making funds and economic resources available to designated persons and entities.  It also amends one of the existing listing criteria. Further derogations from the asset freeze and the prohibition on making funds and economic resources available to certain listed entities have been introduced to allow for divestment from Russian companies and the disposal of certain types of securities held with specified listed entities, and extended the deadline for the derogation allowing for divestment by a specific listed entity. It also introduced a derogation allowing for the setting-up, certification or evaluation of a “firewall” that removes the control exercised by a listed person over the assets of a non-listed Union entity which the listed person owns or controls and that ensures that no benefit accrues to the latter, thus allowing that entity to continue its business operations.
  
  Council Implementing Regulation 2023/1216 adds 71 persons and 33 entities to the list of persons, entities and bodies subject to restrictive measures.
• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2023/1214)
  This introduces, inter alia, a new “anti-circumvention tool” which will allow the EU to restrict the sale, supply, transfer or export of specified sanctioned goods and technology to certain third countries whose jurisdictions are considered to be at continued and particularly high risk of circumvention. This new “anti-circumvention” tool will be an exceptional and last resort measure when other individual measures and outreach by the EU to concerned third countries have been insufficient to prevent circumvention. It adds 87 new entities to the list of those directly supporting Russia's military and industrial complex in its war of aggression against Ukraine. They are subject to tighter export restrictions for dual-use and advanced technology items. In addition to the Russian and Iranian entities already listed, this now also covers entities registered in China, Uzbekistan, the United Arab Emirates, Syria and Armenia.

Further information and background to these measures can be found on the European Council website

 

On 25 February 2023, the EU adopted a tenth package of sanctions. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2023/426 and Council Implementing Regulation 2023/429)

  Council Regulation 2023/426 extends, to certain newly listed banks, certain derogations that were applicable to previously listed banks, and to allow the processing of certain payments through one of the newly listed banks.  It introduces a specific and temporary derogation allowing the disposal or the transfer of securities by an entity established in the Union currently or previously controlled by a specific listed entity. It furthermore introduces a derogation allowing for the termination of operations, contracts or other agreements with a listed entity, and extends by three months the deadline for the derogation under Article 6b(3), by replacing the existing date of ’28 February 2023’ with the date ‘31 May 2023’.

  It introduces more detailed reporting obligations on funds and economic resources belonging to listed individuals and entities, which have been frozen or were subject to any move shortly before the listing.  Reporting obligations are also imposed on central securities depositories to provide relevant information to the Member State concerned and to the Commission.

  Council Implementing Regulation 2023/429 adds 87 persons and 34 entities, including three banks, to the list of persons, entities and bodies subject to restrictive measures.

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2023/427)

  This introduces, inter alia, further restrictions relating to import and exports, broadcasting, critical infrastructure, and the energy sector, and certain reporting obligations to national competent authorities in respect of the aviation sector. In addition, it introduces new reporting obligations to Member States and to the Commission on immobilized reserves and assets of the Central Bank of Russia.

Further information and background to these measures can be found on the European Council website, the Department of Foreign Affairs website and the Department of Enterprise, Trade and Employment website. 

On 16 December 2022, the EU adopted a ninth package of sanctions. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/2474)

  This introduces, inter alia, an extension to an existing prohibition targeting new investments in the Russian energy sector by additionally prohibiting new investments in the Russian mining sector, with certain exceptions. It adds the Russian Regional Development Bank to the list of Russian State-owned or controlled entities that are subject to the transaction ban. It bans Union nationals from holding any posts on the governing bodies of all Russian State-owned or controlled legal persons, entities or bodies that are established in Russia, with the possibility for competent authorities to grant an authorisation in certain circumstances. It extends the duration of the exemption from the prohibition to enter into any transactions with certain Russian state-owned entities if such a transaction is strictly necessary for the wind-down of a joint venture or similar legal arrangement. It also introduces the possibility for national competent authorities to authorise transactions, which are necessary for the divestment and withdrawal of those Russian state-owned entities from EU companies. It aligns the Member States’ reporting obligation on deposits exceeding EUR 100 000 from legal persons, entities or bodies established in third countries and majority-owned by Russian nationals or natural persons residing in Russia, with the similar obligations that already exist for the other types of deposits.

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2022/2475 and Council Implementing Regulation 2022/2476)

  Council Regulation 2022/2475 introduces a new deadline for the derogation allowing the divestment by a specific listed entity. It amends point (a) of Article 6b(3), by replacing the existing date of ‘31 December 2022’ with the date ’28 February 2023’.  It also extends to two newly listed entities the derogation from the asset freeze and from the prohibition to make funds and economic resources available, in order to allow the termination of operations, contracts, or other agreements, previously concluded with those entities. In order to further address food security concerns in third countries, it introduces a new derogation allowing to unfreeze assets of, and to make funds and economic resources available to, certain individuals who held a significant role in international trade in agricultural and food products, including wheat and fertilisers, prior to their listing.

  Council Implementing Regulation 2022/2476 adds 141 persons and 49 entities, to the list of persons, entities and bodies subject to restrictive measures.

Further information and background to these measures can be found on the European Council website, and the Department of Foreign Affairs website.

On 6 October 2022, the EU adopted a further package of sanctions. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/1904)

  This introduces, inter alia, an exemption from the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate in or are exported from Russia, purchased at or below a pre-established price cap. It also expands the prohibition to engage in any transaction with certain Russian State-owned or controlled legal persons, entities or bodies by including a ban on Union nationals to hold any posts on the governing bodies of those legal persons, entities or bodies. Furthermore, it removes the threshold for the existing prohibition on the provision of crypto-asset wallet, account or custody services to Russian persons and residents, thereby banning the provision of such services regardless of the total value of such crypto-asset.

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2022/1905 and Council Implementing Regulation 2022/1906)

  Council Regulation 2022/1905 introduces further criterion for the listing of natural or legal persons, entities or bodies subject to asset freeze and the prohibition to make funds and economic resources available to designated persons and entities. It also introduces further derogations from the asset freeze and the prohibition to make funds and economic resources available to certain listed entities, and introduces additional provisions regarding Member States’ obligations concerning the granting of derogations. Council Implementing Regulation 2022/1906 adds 30 persons and 7 entities, to the list of persons, entities and bodies subject to restrictive measures.

• Amendments to existing sanctions regime – Ukraine (Donetsk & Luhansk) Regime (Council Regulation 2022/1903) 

  This amends the title of the Regulation and extends the geographical scope of the restrictions contained therein to cover all the non-government controlled areas of Ukraine in the oblasts of Donetsk, Kherson, Luhansk and Zaporizhzhia.

Further information and background to these measures can be found on the European Council website, and the Department of Foreign Affairs website.

 

On 21 July 2022, the EU adopted a further package of measures, known as the “maintenance and alignment” package. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/1269)

  This introduces, inter alia, an extension to the list of controlled items which might contribute to Russia’s military and technological enhancement or the development of its defence and security sector. It also imposes a prohibition on the direct or indirect import, purchase or transfer of gold.

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/1270 and Council Regulation 2022/1273)

  Council Implementing Regulation 2022/1270 adds 48 individuals and 9 entities to the list of natural and legal persons, entities and bodies subject to restrictive measures. Council Regulation 2022/1273 introduces, inter alia, further derogations from the asset freezes and the prohibition to make funds and economic resources available to designated persons and entities, as well as an obligation on designated persons and entities with assets within the jurisdiction of a Member State to report these assets and to cooperate with the competent authority in the verification of this reporting. Furthermore, it provides for an extension to the date contained in Article 6b(3)(a) for the sale and transfer of proprietary rights, from  9 October 2022 to 31 December 2022, or within 6 months from the date of listing in Annex I, whichever is latest.

  Ukraine (Territorial Integrity) Regime was further amended by Council Implementing Regulation 2022/1274 by adding six individuals and one entity (involved in the recruitment of Syrian mercenaries to fight in Ukraine alongside Russian troops) to the list of natural and legal persons, entities and bodies subject to restrictive measures.

Further information and background to these measures can be found on the European Council website and the Department of Foreign Affairs website.

On 3 June 2022, the EU adopted a sixth package of sanctions. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/879)

  This introduces, inter alia, an extension to the prohibition on the provision of specialised financial messaging services (SWIFT) to three additional Russian credit institutions (Sberbank, Credit Bank of Moscow, and Russian Agricultural Bank), an expansion to the list of persons connected to Russia’s defence and industrial base, and an extension of the deadline for the cessation of activities provided for in paragraphs 2 and 3 of Article 5m of Regulation 833/2014, from 10 May 2022 until 5 July 2022.

• Amendments to existing sanctions regime – Belarus (Sectoral Measures) Regime (Council Implementing Regulation 2022/876 and Council Regulation 2022/877) 

  Council Implementing Regulation 2022/876 adds 12 individuals and 8 entities to the list of natural and legal persons, entities and bodies subject to restrictive measures. Council Regulation 2022/877 expands the list of Belarusian credit institutions and their Belarusian subsidiaries subject to restrictive measures with regard to the provision of specialised financial messaging services (SWIFT).

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/878 and Council Regulation 2022/880)

Council Implementing Regulation 2022/878 adds 65 individuals and 18 entities to the list of natural and legal persons, entities and bodies subject to restrictive measures. Council Regulation 2022/880 introduces further derogation options from the asset freeze and the prohibition to make funds and economic resources available to designated persons and entities, and clarifies and strengthens the provisions on national penalties for the breach of measures.

Further information and background to these measures can be found on the European Council website and the Department of Foreign Affairs website 

On 8 April 2022, the EU adopted a fifth package of sanctions. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/576)

  This introduces, inter alia, a prohibition on the award and continued execution of public contracts and concessions with Russian nationals and entities or bodies established in Russia. It also extends the prohibitions on the export of euro-denominated banknotes and on the sale of euro-denominated transferrable securities to all official currencies of the Member States.

• Amendments to existing sanctions regime – Belarus (Sectoral Measures) Regime (Council Regulation 2022/577) 

  This imposes, inter alia, further restrictive measures prohibiting the sale to Belarus of transferable securities denominated in any official currency of a Member State, and prohibiting the sale, supply, transfer or export to Belarus of banknotes denominated in any official currency of a Member State.

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2022/580 and Council Implementing Regulation 2022/581)

  Council Regulation 2022/580 introduces further derogation options from the asset freeze and the prohibition to make funds and economic resources available to designated persons and entities. Council Implementing Regulation 2022/581 adds 216 individuals and 18 entities, including four Russian banks, to the list of persons, entities and bodies subject to restrictive measures.

Further information and background to these measures can be found on the Department of Foreign Affairs website. 

A further set of sanctions measures was adopted on 15 March 2022.  Briefly, these measures comprise:

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/427)

  This introduces additional individuals (15) and entities (9) to the list of persons, entities and bodies subject to restrictive measures.

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/428) This introduces, inter alia, new measures to prohibit all transactions with certain Russian state-owned companies, as well as prohibiting the provision of credit rating services and related subscription services to Russian persons or entities. New investments in the Russian energy sector are also prohibited. 

A further set of sanctions measures was adopted on 9 March 2022.  Briefly, these measures comprise:

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/394)

  This introduces restrictions with regard to the maritime sector, an extension to the list of persons, entities and bodies subject to subject to the prohibitions related to investment services, transferable securities, money market instruments, and loans, as well as certain clarifications, including in respect of crypto assets.

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/396)

  This introduces additional individuals, including members of the Russian Federation Council, to the list of persons, entities and bodies subject to restrictive measures.

• Amendments to existing sanctions regime – Belarus (Sectoral Measures) Regime (Council Regulation 2022/398) 

  This introduces an extension of financial measures and certain clarifications, including in respect of crypto assets.

Further information and background to these measures can be found on the Department of Foreign Affairs website.

A third set of EU sanctions was adopted on 2 March and February 2022. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/345 and Council Regulation 2022/350)

  This introduces restrictions with regard to the provision of specialised financial messaging services which are used to exchange financial data to certain Russian credit institutions. The measures also prohibit the sale, supply, transfer or export of euro-denominated banknotes to Russia or to any natural or legal person, entity or body in Russia, including the government and the Central Bank of Russia, or for use in Russia, and prohibit investment in, participation in or other contributions to projects co-financed by the Russian Direct Investment Fund. Certain exceptions and derogations may apply.

  Restrictions are also introduced on the media sector.

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/353)        

  This adds additional individuals (22) to the list of persons, entities and bodies subject to restrictive measures.

• Amendments to existing sanctions regime – Belarus (Sectoral Measures) Regime (Council Regulation 2022/355)

  This introduces further restrictions on trade between the EU and Belarus.          

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/334)

  This introduces measures to prohibit any transactions with the Central Bank of Russia. In addition, it introduces restrictions on the aviation sector. 

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/336) 
This extends listing criteria, to add additional individuals (26) and one entity to the list of persons, entities and bodies subject to restrictive measures.    

Further information and background to these measures can be found on the Department of Foreign Affairs website. 

A second round of EU sanctions was adopted on 25 February. These measures covers the financial sector, the energy and transport sectors, dual-use goods as well as export control and export financing, visa policy, additional listings of Russian individuals and new listing criteria. Briefly, these measures comprise:

• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/328)

  This introduces further restrictions related to finance, defence, energy, aviation, and space industry. This expands existing financial restrictions, in particular access by certain Russian entities to EU capital markets; prohibits the listing and provision of services in relation to shares of Russian state-owned entities on EU trading venues; and limits financial inflows from Russia to the EU by prohibiting the acceptance of deposits exceeding certain values from Russian nationals or residents, the holding of accounts of Russian clients by the EU Central Securities Depositories and the selling of euro-denominated securities to Russian clients.

• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2022/330 and Council Implementing Regulation 2022/332)
This extends listing criteria, to add additional individuals to the list of designated persons.

Further information and background to these measures can be found on the Department of Foreign Affairs Restrictive Measures (Sanctions) website. 

The first set of EU sanctions, adopted on 23 February 2022, comprises targeted restrictive measures on a number of individuals and entities, restrictions on economic relations with the non-government controlled areas of the Donetsk and Luhansk oblasts, and financial restrictions against Russia. Briefly, this package of measures comprise:

• A new sanctions regime – Ukraine (Donetsk and Luhansk Sectoral Measures) Regime (Council Regulation 2022/263)
  This introduces restrictions on goods originating in the specified territories and on the provision, directly or indirectly, of financing or financial assistance, as well as insurance and reinsurance, related to the import of such goods, with the exception of goods having been granted a certificate of origin by the Government of Ukraine.
  
  
• Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/262)
  This introduces a prohibition on the financing of Russia, its government and its Central Bank.
  
  
• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/260 and Council Regulation 2022/259)
  This adds additional individuals (22) and entities (four) to the list of persons, entities and bodies subject to restrictive measures.
  
  
• Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Implementing Regulation 2022/261)
  This adds additional individuals (336) to the list of persons, entities and bodies subject to restrictive measures.

For further information and background to this sanctions package, please see press release, dated 24 February 2022, from the Department of Foreign Affairs, the website of the Department of Finance, and press release, dated 23 February 2022, from the Council of the EU. 

On 16 June 2022, the Central Bank issued a letter to business and professional representative bodies to provide information and to request that the information be shared, in order to assist their members as they meet their obligations under the EU Financial Sanctions.  A copy of the letter to industry is available below.

Financial Sanctions Letter 16 June 2022 | pdf 497 KB

In certain specific circumstances (which are set out as derogations in the relevant Regulations), a legal or natural person may be granted a prior authorisation by a competent authority to undertake an activity that would otherwise be prohibited under the Regulations. For example, a Designated Person may apply to a competent authority for a derogation to make a payment to cover basic needs of that person, from an account that is frozen under the Regulations.

Derogation applications relating to a financial sanction under the relevant Regulations should be submitted to the Central Bank, using the Sanctions Derogation Application Form, by emailing [email protected]. .

Further information and guidance on derogation applications, as well as the Sanctions Derogation Application Form, is available on the Central Bank’s dedicated Derogations webpage. 

The EU’s sanctions packages adopted since February 2022 introduced several new reporting obligations, including:

• Reporting by credit institutions of deposits exceeding EUR 100,000;
• Reporting by listed persons, entities or bodies of funds and/or economic resources located within Ireland;
• Reporting by natural or legal persons, entities or bodies owning, holding or controlling assets and reserves of the Central Bank of Russia; and
• Reporting of movements of funds and economic resources two weeks prior to listing of a designated person under Council Regulation (EU) No 269/2014.

In this regard, consideration should also be given to the European Commission’s Frequently Asked Questions, which is regularly updated.

Information on these obligations, as well as the reporting forms, is available on the Central Bank’s dedicated Sanctions Reporting webpage. 

The European Commission launched a whistleblower tool on 4 March 2022. If you are aware of possible violations of any EU sanctions, you can bring this to the attention of the European Commission by voluntarily providing information. This information can relate, for example, to facts concerning sanctions violations, their circumstances and the individuals, companies and third countries involved. These can be facts that are not publicly known but are known to you and can cover past, ongoing or planned sanctions violations, as well as attempts to circumvent EU sanctions. View further details on the EU sanctions whistleblower tool.