Fifth package of EU economic sanctions against Russia

Restrictive measures against individuals

The Council adopted restrictive measures against a 217 people. These include wealthy Russians, senior Kremlin officials, individuals responsible for disinformation and information manipulation, as well as family members of previously listed individuals.

These 217 people have been added to the list of natural persons sanctioned under Regulation (EU) No 269/2014 of 17 March 2014 concerning restrictive measures with regard to actions compromising or threatening the territorial integrity, sovereignty and Ukrainian independence. Restrictive measures include:

  • the freezing of funds and economic resources belonging to, possessed, held or controlled by these listed persons;
  • a prohibition on making funds or economic resources available, directly or indirectly, to or for the benefit of such registrants; and
  • a travel ban preventing listed individuals from entering or transiting EU territory.

As of 8 April 2022, restrictive measures adopted in response to the conflict in Ukraine targeted a total of 1,091 listed individuals.

Restrictive measures against entities

The Council adopted restrictive measures against a 18 entities, which include:

  • 4 Russian banks: Otkritie FC Bank, Novikombank, Sovcombank and VTB Bank;
  • 13 entities active in the military and defense sectors; and
  • 1 public entity active in the transport sector.

These entities have been added to the list of sanctioned entities under Regulation (EU) No 269/2014 of March 17, 2014. The restrictive measures applicable to listed entities include a freezing of their funds and economic resources, as well as a prohibition of funds or economic resources at their disposal, in the same way as these measures apply to individuals.

As of April 8, 2022, the restrictive measures adopted in response to the conflict in Ukraine targeted a total of 80 entities.

Restrictive measures in the banking and financial sectors

The Council amended and adopted restrictive measures in the banking and financial sectors, in particular:

  • The prohibition to provide support, financing or any other benefit under a national program and contracts of the EU, Euratom or a Member State within the meaning of Regulation (EU, Euratom) No 2018/1046, to any entity established in Russia with more than 50% public ownership or control.
  • A ban on providing crypto-asset wallet, account or custody services to Russian nationals, natural persons residing in Russia or entities established in Russia, if the total value of crypto-assets per wallet, account or provider custody exceeds €10,000.
  • The extension of the ban on the sale of transferable securities denominated in euros issued after April 12, 2022 (or units of undertakings for collective investment offering exposure to such securities) to Russian nationals, natural persons residing in Russia or entities established in Russia, to transferable securities denominated in any official currency of an EU Member State.
  • The extension of the ban on the sale, supply, transfer or export of banknotes denominated in euros to Russia, any person or entity in Russia or for use in Russia, to now include banknotes denominated in any official currency of an EU Member State.
  • The ban :
    • to register, provide a registered office, a commercial or administrative address as well as management services to a trust (or any similar legal arrangement) having as trustee or beneficiary: Russian nationals or natural persons residing in Russia, entities established in Russia, or all natural and legal persons falling within the scope of the newly inserted Article 5c of Regulation (EU) No 833/2014; and
    • effective May 10, 2022, to act as (or cause another person to act as) trustee, nominee shareholder, director, secretary or similar position for a trust (or similar legal arrangement) mentioned above.

Restrictive measures in other sectors of the economy

The Council adopted new restrictive measures in other sectors of the economy, in particular:

  • Measures affecting trade between Russia and the European Union.
    • The prohibition to purchase, import or transfer goods (listed in Annex XXI of Regulation (EU) No 833/2014) into the EU if they originate in Russia or are exported from Russia. This list includes a wide variety of products such as seafood, fertilizers, wood and aluminum. It is also prohibited to provide financing or financial assistance, technical assistance, brokerage services or other services relating to these goods.
    • A ban on buying, importing or transferring coal and other solid fossil fuels (listed in Annex XXII of Regulation (EU) No 833/2014) into the EU if they come from Russia or are exported from Russia. It is also prohibited to provide financing or financial assistance, technical assistance, brokerage services or other services relating to these goods.
    • The prohibition on selling, supplying, transferring or exporting goods (listed in Annex XXIII of Regulation (EU) No 833/2014) to any person or entity in Russia or for use in Russia. This list includes a wide variety of goods such as jet fuel, precious metals, chemicals and photographic equipment. It is also prohibited to provide financing or financial assistance, technical assistance, brokerage services or other services relating to these goods.
  • The prohibition for road transport companies established in Russia to transport or transit goods by road within the EU. Unlike the measures described above, the goods subject to this prohibition are not listed in an annex and should therefore be considered to include all goods.
  • The prohibition, after 16 April 2022, of providing vessels registered under the flag of Russia with access to ports located in the EU, including those which have changed their Russian flag or registration to the flag or register from any other state after February 24, 2022.
  • The prohibition for entities established in Russia to participate in public procurement procedures in the EU. Specifically, it is prohibited to award or continue to perform any public contract or concession falling within the scope of the Public Procurement Directives to or with Russian natural or legal persons established in Russia.

Our expertise

Contact our experts Philippe-Emmanuel Partsch, Marianne Brésart and Björn ten Seldam from the EU Financial and Competition Law Department to help you understand these measures and their potential impact on your business.

This communication, which we believe may be of interest to our customers and friends of Arendt, is for general information only. It is not a complete analysis of the issues presented and should not be considered legal advice.

Definitions

Funds: financial assets and benefits of any kind, including, but not limited to: (i) cash, checks, money claims, drafts, money orders and other instruments of payment; (ii) deposits with financial institutions or other entities, account balances, debts and evidences of indebtedness; (iii) publicly traded and publicly traded securities and debt securities, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivative contracts ; (iv) interest, dividends or other income or value derived from or generated by the Assets; (v) credit, right of set-off, guarantees, performance bonds or other financial commitments; (vi) letters of credit, bills of lading, bills of sale and (vii) documents evidencing an interest in funds or financial resources – article 1 (g) of Regulation (EU) 269/2014

Economic resources: assets of any kind, tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services – article 1, point d), of Regulation (EU) 269/2014

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