10.04.2022

We would like to inform you of the latest developments on the adoption of sanctions as a response to Russia’s aggression in Ukraine including the EU 5th package legal texts. 

  1. The EU adopted its 5th package of sanctions: 
  1. Press release 
  1. Legal texts: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2022:110:FULL&from=EN ; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2022:111:TOC 

Summary of measures: 

  1. a prohibition to purchase, import or transfer coal and other solid fossil fuels into the EU if they originate in Russia or are exported from Russia, as from August 2022. Imports of coal into the EU are currently worth EUR 8 billion per year. 
  1. a prohibition to provide access to EU ports to vessels registered under the flag of Russia. Derogations are granted for agricultural and food products, humanitarian aid, and energy. 
  1. a ban on any Russian and Belarusian road transport undertaking preventing them from transporting goods by road within the EU, including in transit. Derogations are granted for a number of products, such as pharmaceutical, medical, agricultural and food products, including wheat, and for road transport for humanitarian purposes. 
  1. further export bans, targeting jet fuel and other goods such as quantum computers and advanced semiconductors, high-end electronics, software, sensitive machinery and transportation equipment, and new import bans on products such as: wood, cement, fertilisers, seafood and liquor. The agreed export and import bans only account for EUR 10 billion and EUR 5.5 billion respectively. 
  1. a series of targeted economic measures intended to strengthen existing measures and close loopholes, such as: a general EU ban on participation of Russian companies in public procurement in member states, the exclusion of all financial support to Russian public bodies. an extended prohibition on deposits to crypto-wallets, and on the sale of banknotes and transferrable securities denominated in any official currencies of the EU member states to Russia and Belarus, or to any natural or legal person, entity or body in Russia and Belarus. 
  1. Furthermore, the Council decided to sanction companies whose products or technology have played a role in the invasion, key oligarchs and businesspeople, high-ranking Kremlin officials, proponents of disinformation and information manipulation, systematically spreading the Kremlin’s narrative on Russia's war aggression in Ukraine, as well as family members of already sanctioned individuals, in order to make sure that EU sanctions are not circumvented. 
  1. Finally, a full transaction ban is imposed on four key Russian banks representing 23% of market share in the Russian banking sector. After being de-SWIFTed these banks will now be subject to an asset freeze, thereby being completely cut off from EU markets. 

Guidance, in the form of FAQs, is frequented added and being updated by the European Commission. You may access the latest information here

  1. Members are invited to share with us any particular questions they may have on the 5th package of sanctions as a new meeting with DG Trade is foreseen for the 14 April. 
  1. Over the past days, the US has announced additional measures: 
  1. 5 April: Sanctioning Russia-Based Hydra, World’s Largest Darknet Market, and Ransomware-Enabling Virtual Currency Exchange Garantex
  2. 6 April: Prohibiting New Investment in and Certain Services to the Russian Federation in Response to Continued Russian Federation Aggression & the related message to the Congress
  3. 6 April: Targeting critical arteries of the Russian Federation economy, fully blocking largest public and private banks and sanctioning Putin’s family and architects of the war
  4. 7 April: Sanctioning Major Russian State-Owned Enterprises 

The US also issued the following fact sheet: United States, G7 and EU Impose Severe and Immediate Costs on Russia

  1. From the part of the UK the following measures were adopted: 
  1. 5 April: The Wagner Group
  2. 6 April: 10 entities, subject to an asset freeze, including Gazprom Bank and VTB Bank. See also here.
  3. 8 April: Additional individuals subject to an asset freeze, targeting family members of President Putin and Minister of Foreign Affairs Lavrov. See also here.

 G7 Statements: 

  1. 7 April: G7 Leaders’ Statement
  2. 7 April: G7 Foreign Ministers’ Statement

Date: 10.04.2022

Source: BUSINESSEUROPE

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