December 18, 2024

EU announces the adoption of 15th sanctions package against Russia

The EU recently announced the adoption of a new sanctions package to address Russia’s illegal war against Ukraine.  The EU’s 15th sanctions package specifically targets Russia’s shadow fleet that has enabled Russia to circumvent sanctions.  A total of 52 new vessels in Russia’s shadow fleet will be sanctioned as well as 84 additional individuals and entities that were involved in or otherwise enable Russia’s military industrial base.  According to the European Commission, this is the first time that that the EU has adopted “fully-fledged” sanctions (travel ban, asset freeze and prohibition to make economic resources available) on Chinese persons and entities.  The new package also includes the designations of two senior officials in the Democratic People’s Republic of Korea.

The sanctions package also includes trade sanctions against 32 new companies that have allegedly supported Russia’s military and industrial complex in its illegal war – companies that will be subject to stricter export restrictions with respect to dual-use goods and technology and advanced technology items.  The package also aims at protecting EU operators from legal rulings illegally issued by Russian courts that attempt to give exclusive mandatory competence to Russian courts in all disputes between EU and Russian companies.

In addition, the sanctions package extends existing derogations that enable EU operators to divest from Russia.  The Commission also introduces two amendments that address Russian efforts to seize assets of the EU Central Securities Depositories (“CSDs”).  One amendment is a loss recovery derogation that will enable the release of cash balances held by CSDs so that they can be used by CSDs to meet their legal obligations with their client.  The other amendment is a no liability clause to clarify that CSD’s are not liable to pay interest to the Central Bank of Russia beyond that which is contractually due.

European Commission Press Release