The European Union (“EU“) has issued the 14th package of sanctions against Russia and a new package of sanctions against Belarus.
14th EU Sanctions Package against Russia.
On June 24, 2024, the EU published the 14th package of sanctions against Russia.
The new package includes significant updates, including:
- Subjective restrictions against 69 new individuals and 74 new entities (both Russian and non-Russian);
- Increased commodity restrictions on both exports and imports;
- Further limitations on the provision of services;
- Extension of the “no Russia” clause with an obligation to implement control procedures;
- Control of EU companies over the activities carried out by their non-EU subsidiaries to ensure that they do not act in contravention of restrictive measures against Russia;
- Possibility to request compensation for the “temporary administration” by the Russian government of shares in Russian companies owned by companies located in EU countries, such as Italy;
- Provisions regarding legal protection and limits in the recognition of judgments and arbitral awards;
- Extension of deadlines for divestment activities and exit from the Russian market;
- Restrictions on the supply and related services of liquefied natural gas (“LNG”);
- Measures to protect EU companies affected by harmful actions or measures by Russian entities: EU companies can appeal to the competent Courts to seek compensation for damages suffered due to expropriations and/or nationalizations of assets or due to legal actions initiated in non-EU countries by Russian entities or entities controlled by Russians concerning contracts or transactions whose execution has been affected by restrictive measures against Russia.
The 14th sanctions package came into effect on June 25, 2024, but some grandfathering clauses have been provided.
New Sanctions Package against Belarus.
On June 29, 2024, the EU issued a new sanctions package against Belarus, which entails almost complete alignment with the sanctions applied to Russia up to the 14th package.
The new package includes significant updates, including:
- Extension of the export ban on dual-use/advanced goods and technologies;
- Additional restrictions on the export of goods that can contribute to the enhancement of Belarusian industrial capacities;
- Additional restrictions on the export of goods and technologies for maritime navigation and luxury goods;
- Ban on the import, purchase, or transfer of gold, diamonds, helium, coal, and mineral products (including crude oil);
- Ban on the export of goods and technologies for oil refining and natural gas liquefaction;
- Ban on providing certain services to the State of Belarus, the Belarusian government, its public entities, enterprises, or agencies, and/or any natural or legal persons acting on behalf or under the direction of the Belarusian government (such as accounting services, auditing services, tax advisory services, management consulting services, IT and legal consulting services, advertising services, market research, and opinion polling services, etc.);
- Ban on the transport of goods by road within EU territory using trailers or semi-trailers registered in Belarus, even if towed by trucks registered outside Belarus;
- Obligation of the “no-Belarus” clause in contracts signed by EU exporting companies to prohibit their customers from re-exporting to Belarus or re-exporting for use in Belarus sensitive goods and technologies, products intended for battlefield use, firearms, and ammunition;
- Measures to protect EU companies affected by harmful actions or measures by Belarusian entities: EU companies can appeal to the competent Courts to seek compensation for damages suffered due to expropriations and/or nationalizations of assets or due to legal actions initiated in non-EU countries by Belarusian entities or entities controlled by Belarusians concerning contracts or transactions whose execution has been affected by restrictive measures against Belarus.
The new sanctions package came into effect on July 1, 2024, but some grandfathering clauses have been provided.
Finally, it is highlighted that the subjective restrictions provided by the issued sanctions packages do not only concern individuals or entities of Russian or Belarusian nationality, but also some entities and companies registered in Turkey, China, India, Kazakhstan, Ukraine, and other countries that facilitate the evasion of sanctions against Russia and Belarus.
Our Services
In light of the new EU sanctions against Russia and Belarus, it is crucial for companies to conduct rigorous due diligence and adjust their commercial contracts to avoid violations and disputes.
The professionals at Bacciardi Partners are ready to provide you with all the necessary assistance to ensure that your international business operations comply with the new sanction regulations.
Do not hesitate to contact us for personalized consultancy and further insights on how the new sanctions may impact your business.
Avv. Tommaso Fonti – Equity Partner