We would like to inform you that on June 23, 2023, the Council of the European Union adopted the 11th package of sanctions against Russia. Below we point out the main changes among the new sanctions.
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The eleventh package of EU sanctions to the Russian Federation
ANTI-CIRCUMVENTION PURPOSE
In order to prevent the circumvention of restrictive measures through the intermediation of third countries, article 12-septies of Regulation (EU) 2023/1214 prohibits the sale, supply, transfer and export, directly or indirectly, of sensitive or dual-use goods and technologies or those suitable for contributing to the military, technological or industrial capacity of Russia, to certain third countries identified in Annex XXXIII of the Regulation.
RESTRICTION OF GOODS
The Regulation (EU) 2023/1214 increases the categories of items subject to restrictions, particularly with regard to:
- goods and technologies that could upgrade Russia’s defense and security sector (electronic materials and their components, semiconductions, telecommunications equipment, sensors and lasers, aviation and naval equipment – Annex VII);
- goods that could contribute to the reinforcement of Russia’s industrial capabilities (e.g. textile and metallurgical sector products – Annex XXIII);
- firearms (e.g. spring, air or gas guns and pistols – Annex XXXV).
RESTRICTION RELATING TO INDIVIDUALS AND ENTITIES
The Regulation (EU) 2023/1214 highlights 87 new entities of Armenian, Syrian, Emirate, Uzbek, and Chinese nationalities “which are military end-users, form part of Russia’s military-industrial complex or which have commercial or other links with or which otherwise support Russia’s defense and security sector”. These entities were subject to restrictions on the trading of dual-use goods and technologies.
Executive Regulation (EU) 2023/1216, amending Annex I of Reg. (EU) 2014/265, added 71 individuals and 33 entities to the list of natural and legal entities responsible for actions that compromise or threaten the territorial integrity, sovereignty and independence of Ukraine.
RESTRICTION RELATING TO TRANSPORT AND BUNKERING
Starting July 24, 2023, Regulation (EU) 2023/1214 provides the prohibition of access to ports and locks in the territory of the EU “by vessels engaged in ship-to-ship transfers where the competent authorities have reasonable cause to suspect that a vessel is in breach of the ban on importing seaborne Russian crude oil and petroleum products into the Union or is transporting Russian crude oil or petroleum products purchased above the price cap agreed by the Price Cap Coalition”.
It is noted that this prohibition will apply to all ships, regardless of their flag of registration, and to all ship-to-ship trans-shipments made at any time during the voyage to the ports or locks of a EU State.
There is also a ban on the transportation of goods by road in the EU with trailers and semi-trailers registered in Russia, even if they are towed by trucks registered outside Russia.
INTELLECTUAL PROPERTY
It is provided for the prohibition on the sale, licensing, and any other transfer of Intellectual Property rights or trade secrets in connection with goods or technologies whose sale, supply, transfer, or export is prohibited, to natural or legal persons, entities, or organizations in Russia or for use in Russia.
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