The twelfth round of sanctions against Russia: additional

exist December 18, 2023 The EU Council adopted the twelfth round of sanctions against Russia.

I. List of Newly Registered Sanctioned Individuals and Entities: 140 new individuals and entities

The targeted individuals and entities belong specifically to the following industries:

• Russian military and defense, including private military companies;
• Information Technology Department.

Also includes:

• those who planned the recent illegal “elections” on Ukrainian territory;
• Those responsible for the forced “re-education” of Ukrainian children;
• People who spread false information/propaganda.

II. Trade Measures: New import and export bans and restrictions

A. Ban on importing Russian diamonds

The start time of this ban varies depending on the nature of the imported diamonds:

• By January 1, 2024 at the latest: non-industrial diamonds mined, processed or produced in Russia;
• From March 1, 2024: Russian diamonds polished in third countries;
• From September 1, 2024: Laboratory diamonds, jewellery and watches containing diamonds.

To ensure the effectiveness of these measures, a traceability mechanism will be established, which will, for example, provide for registration obligations.

B. Prohibition on import of raw materials used in the production of steel, aluminum products and other metal products

For steel raw materials, the measures will be fully implemented after a 12-month transition period under existing contracts or after a two-year period, during which a certain amount of imports will still be allowed to give EU companies time to find alternative sources.

C. Export restrictions on dual-use products and advanced technology and industrial products

These restrictions relate to:

• New export controls on various products (chemicals, engines, spare parts, etc.);
• New export bans on EU industrial products (processed steel, batteries, etc.);
• adding 29 Russian and third-country entities to the list of entities associated with the Russian military-industrial complex;
• Providing business and design software to the Russian government or Russian companies is prohibited.

It will be added to Article 5n of Regulation 833/2014.

III. Strengthening restrictions on asset freezing

• New criteria for inclusion in the list of sanctioned individuals and entities: The aim is to prevent individuals from benefiting from losses incurred when subsidiaries of EU companies are acquired by Russian owners/leaders;
• Authorizes the retention of deceased persons on the list of individuals and entities subject to freezing;
• Strengthening Member States’ obligations on the traceability of assets of persons on the list to combat circumvention.

IV. Measures in the energy sector

• Tightening of oil price caps, in particular by increasing controls on the sale of tankers to third countries and requiring more detailed certificates.
• A ban on imports of liquefied petroleum gas (LPG), affecting imports worth more than €1 billion per year.

V. Strengthening Anti-Circumvention Measures

• Expanding the ban on transit through Russia;
• “Russia-ban clauses”: Operators are obliged to prohibit the re-export of certain sensitive goods and technologies (e.g. in the aviation sector) through contracts;
• A new measure has been added that will make it mandatory to “notify certain transfers of funds outside the EU from EU entities in which Russians directly or indirectly own more than 40% of the shares or from entities established in Russia.”

VI. Other measures: Adding certain exemptions

The purposes of these new exemptions are to:

• Consider situations where a Member State decides to deprive a listed individual of funds or economic resources in the public interest;
• Allowing recently listed insurers to pay compensation;
• Allows the sale of EU companies owned by certain listed individuals or entities.

DS Avocats Customs and International Trade team are on hand to provide you with any additional information.

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dscustomsdouane@dsavocats.com