Online publication by fokus Rechtsanwälte GmbH on the EU’s twelfth sanctions package against Russia.

The EU has now adopted the twelfth sanctions package as part of its Russia sanctions. This package includes, in particular, the inclusion of further natural persons and companies from Russia in the sanctions list as well as new import and export bans – such as the ban on exporting Russian diamonds to Europe – which are being implemented in close cooperation with the G7 partners. In addition, this package will strengthen the monitoring of the use of tankers to circumvent the oil price cap and thus ensure stricter enforcement of the cap. The package also includes a tightening of asset tracing obligations and tough measures against third country companies that circumvent sanctions.

The assets of over 140 other natural persons and legal entities will be frozen. This concerns members of the Russian military and defence sector, including military industry companies and private military companies, as well as players from the IT sector and other important economic sectors. The measures also target individuals responsible for the illegal “elections” in the temporarily Russian-occupied territories of Ukraine, participating in the forced “re-education” of Ukrainian children or spreading disinformation and propaganda in favour of Russia’s war of aggression against Ukraine.

The newly introduced trade measures include, in particular, an import ban on Russian diamonds: Import restrictions on diamonds mined, processed or manufactured in Russia (excluding industrial diamonds).

In addition, a ban on imports of raw materials for steel production, processed aluminium products and other metal goods: and further export restrictions on certain dual-use goods and advanced technological and industrial goods. New items covered include chemicals, thermostats, DC motors and servomotors for unmanned aerial vehicles (UAV), machine tools and machine parts. New export bans on industrial goods from the EU, which are intended to further weaken Russia’s industrial sector and include machinery and machine parts, construction goods, processed steel, copper and aluminium products, lasers and batteries.

The Council has agreed on a new criterion under which persons who profit from the forced transfer of ownership of Russian subsidiaries of EU companies or the forced transfer of control over such companies can be added to the sanctions list. This will ensure that no one benefits from the losses suffered by companies in the EU when their subsidiaries are forcibly transferred to Russian ownership or placed under Russian management. Possibility of keeping deceased persons with frozen assets on the sanctions list to prevent the asset freezing measure from being undermined. In addition, a tightening of the obligations for Member States in relation to asset tracing in order to prevent and detect sanctions violations or circumvention.

Two new measures were adopted: On the one hand, the strengthening of the oil price cap through stricter monitoring of the sale of tankers to third countries and detailed verification requirements. On the other hand, a new import ban on liquefied petroleum gas (LPG) with a grandfathering clause for existing contracts of up to 12 months was also provided for.

In addition, the transit ban was extended by adding certain economically critical goods to the list if they are intended for export to third countries.

In addition, economic operators are obliged to contractually prohibit the re-export of certain categories of sensitive goods to Russia, including aviation goods, jet fuel, firearms and high-priority goods from the common list.

Finally, a new reporting obligation will also be introduced, according to which companies in the EU that are more than 40 % directly or indirectly owned by Russian citizens or companies based in Russia will have to report certain money transfers in future.