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International trade

EU Imposes 14th Package of Restrictive Measures Against Russia

Strategic Insights

— 2 min read

The European Union's Council adopted the 14th package of restrictive measures against Russia on 24 June 2024, targeting key sectors such as finance, trade, and economy. The new package includes sanctions on Russian liquid natural gas (LNG), listing 116 new sanctioned individuals and entities, and new provisions to ensure compliance and target circumvention. This package aims to further weaken Russia's economic capacity and limit its ability to fund the ongoing war against Ukraine. Additionally, EU parent companies with foreign subsidiaries are now required to undertake their best efforts to prevent their subsidiaries from undermining EU sanctions.

Key Takeaways:

  • The 14th package of restrictive measures against Russia targets key sectors such as finance, trade, and economy, including new sanctions on Russian liquid natural gas (LNG) and listing 116 new sanctioned individuals and entities.
  • EU parent companies with foreign subsidiaries are now required to undertake their best efforts to prevent their subsidiaries from undermining EU sanctions, including due diligence and anti-circumvention measures.
  • The EU is targeting Russian liquified natural gas ("LNG") for the first time, thereby reducing significant revenues that Russia earns from LNG sales and transport.
  • New bans imposed on imports and exports that reinforce current sanctions on key categories of products, including chemicals, plastics, vehicle parts, and machinery.
  • EU banks are now prohibited from carrying out transactions using the Financial Messaging System of the Central Bank of Russia ("SPFS").
  • The EU is extending the "no-Russia" clause, which prohibits companies from contractingually prohibiting transferred intellectual property rights to third countries from being used by them or their sublicensees for manufacturing Common High Priority ("CHP") goods to Russia.
  • EU operators are considered to own or control their non-EU subsidiaries if they are able to assert "a decisive influence" over them, including ownership with 50% or more proprietary rights or holding a majority interest.

Statistics:

  • 160 banks around the world are connected to the SPFS (Article 5ac).
  • 116 new sanctioned individuals and entities are listed in the new package.
  • The EU is targeting Russian liquified natural gas ("LNG") for the first time.

Sources:

  • Council Regulation (EU) 2024/1745 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine
  • amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
  • Recital 30 of Council Regulation (EU) 2024/1745, Article 8a of Regulation (EU) 833/2014
  • Recital 27 of Council Regulation (EU) 2024/1745, Article 8a of Regulation (EU) 833/2014.

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