EU Expands Sanctions Regime with 17th Sanctions Package against Russia

This week, the EU published its 17^th sanctions package including new asset freeze listings, a new asset freeze listing ground, and new measures targeting Russia’s shadow fleet, oil and military sector. 

This latest package reflects a continued shift toward more expansive enforcement tools, including greater scrutiny of indirect involvement and third-country actors. Businesses with direct or indirect ties to Russian markets or supply chains should reassess exposure in light of these developments.

Notably, the EU introduced the following: 

• Expanded the list of asset freeze listings by designating 17 persons and 58 entities including persons active in Russia’s defence, energy (such as Surgutneftegaz), shadow fleet and insurance sector.   
• Introduced a new asset freeze listing criterion for natural and legal persons that have participated in or enabled transfers of ownership, control or economic benefit of the business interests of leading businesspersons operating in Russia.
• Expanded list of vessels of Russia’s shadow fleet subject to the port access ban: Added 189 vessels to the list of vessels subject to a port access ban and ban to provide certain maritime-related services.
• Extended list of entities associated with the Russian military-industrial complex: 31 new entities have been added to the list of entities associated with the Russian military-industrial complex (including non-Russian entities from countries such as China, India, the Kyrgyz Republic, Uzbekistan, Turkey, Singapore, and Vietnam). Entities on this list are subject to tighter dual-use and military goods export licensing requirements. 
• Addition of new export restricted items such as chemical precursors to energetic materials and spare parts for machine tools.

While the EU is already preparing its 18^th sanctions package against Russia, with current discussions focusing on further tightening the oil price cap and exploring additional restrictions in the energy and financial sector, the EU has not expanded or announced new sanctions against Belarus yet.  

Our EU sanctions team continues to monitor sanctions developments and is happy to support. Please reach out if you would like to discuss any of the topics discussed in this blog.