The Council of the European Union yesterday adopted the 12th package of economic and individual restrictive measures in view of the continued Russian war of aggression against Ukraine. These measures target high-value sectors of the Russian economy and make it more difficult to circumvent EU sanctions.
“With this 12th package, we are putting forward a robust set of new listings and economic measures which will further weaken Russia’s war machine,” Josep Borrell, High Representative for Foreign Affairs and Security Policy, said. “Our message is clear, as I already stated when I chaired the informal Foreign Affairs Council in Kyiv: we remain steadfast in our commitment to Ukraine and will continue to support its fight for freedom and sovereignty.”
Diamonds
The EU is imposing a prohibition on the direct or indirect import, purchase or transfer of diamonds from Russia. This prohibition applies to diamonds originating in Russia, diamonds exported from Russia, diamonds transiting Russia and Russian diamonds when processed in third countries.
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A direct ban applies to non-industrial natural and synthetic diamonds as well as diamond jewellery, as of 1 January 2024. An indirect import ban of Russian diamonds when processed (i.e. cut and/or polished) in third countries, including jewellery incorporating diamonds originating in Russia, will be phased in progressively as of 1 March 2024 and be completed by 1 September 2024. This phasing-in of indirect import bans is justified by the need to deploy a traceability mechanism that enables effective enforcement measures and minimises disruptions for the EU market.
No Russia clause
The new package also requires that EU exporters contractually prohibit re-exportation to Russia and re-exportation for use in Russia of particularly sensitive goods and technology, when selling, supplying, transferring or exporting to a third country, with the exception of partner countries. This clause covers prohibited items used in Russian military systems found on the battlefield in Ukraine or critical to the development, production or use of those Russian military systems, as well as aviation goods and weapons.
Import and export
The Council added 29 new entities to the list of those directly supporting Russia’s military and industrial complex in its war of aggression against Ukraine. They will be subject to tighter export restrictions concerning dual use goods and technologies, as well as goods and technology which might contribute to the technological enhancement of Russia’s defence and security sector. Some of these 29 entities belong to third countries involved in the circumvention of trade restrictions, or are Russian entities involved in the development, production and supply of electronic components for Russia’s military and industrial complex.
Furthermore, today’s decision expands the list of restricted items that could contribute to the technological enhancement of Russia’s defence and security sector to include: chemicals, lithium batteries, thermostats, DC motors and servo motors for unmanned aerial vehicles (UAV), machine tools and machinery parts.
The EU also introduced further restrictions on imports of goods which generate significant revenues for Russia, such as pig iron and spiegeleisen, copper wires, aluminium wires, foil, tubes and pipes for a total value of €2.2 billion per year. A new import ban is introduced on liquefied propane (LPG) with a 12-month transitional period.
Anti-circumvention measures
The transit ban that currently applies to dual use goods and technologies exported from the EU to third countries via the territory of Russia will be extended to all battlefield goods.
In order to further limit circumvention, yesterday’s decision includes a ban on Russian nationals from owning, controlling or holding any posts on the governing bodies of the legal persons, entities or bodies providing crypto-asset wallet, account or custody services to Russian persons and residents.
Additionally, the existing prohibition on the provision of services will be extended to also include the provision of software for the management of enterprises and software for industrial design and manufacture.
Lastly, the EU is imposing notification requirements for the transfer of funds outside the EU by any entity established in the EU that is owned or controlled by an entity established in Russia, or by a Russian national or natural person residing in Russia.
Individual listings
In addition to economic sanctions, the Council decided to list a significant number of additional individuals and entities. The list will soon be published in the Official Journal of the EU.
National Assembly of the Republic of Armenia
