Member Article

On 23 June 2023, the Council of the European Union adopted its eleventh package of restrictive measures against Russia, which supplements those discussed in our previous newsflashes_. This latest package aims to tackle the circumvention of previously adopted sanctions and also adds additional restrictions.

The Council has adopted three regulations:

• Council Regulation (EU) 2023/1214 of 23 June 2023 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine.
• Council Regulation (EU) 2023/1215 of 23 June 2023 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.
• Council Implementing Regulation (EU) 2023/1216 of 23 June 2023 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

Further sanctions against individuals and entities

An additional 71 persons and 33 entities have been listed under Regulation (EU) No 269/2014. These persons and entities are now subject to an asset freeze and making funds or economic resources available to them is prohibited.

The Council has also added 87 entities to Annex IV of Regulation (EU) No 833/2014. Some of these entities are in Armenia, Hong Kong, Syria, the UAE, and Uzbekistan. If the competent authorities of Member States have reasonable grounds to believe that one of these entities will be the end-user of certain restricted goods or technologies, they must reject certain export licences.

New anti-circumvention tool

To counter circumvention of restrictive measures through third countries, the Council can now restrict the sale, supply, transfer or export of goods and technologies to certain third countries if existing prohibitions are insufficient.

Transport restrictions

The new package tightens restrictions on oil imports from Russia. From 24 July 2023, the competent authorities of the Member States will be able to prohibit access to EU ports for any ship that has carried out ship-to-ship transfers and which is suspected of having infringed the ban on importing or transporting Russian crude oil or petroleum products.

The Council has also banned road haulage companies from using trailers and semi-trailers registered in Russia to transport goods into the EU.

Export bans on additional goods and technologies

Additional export bans now include certain printed circuit boards and chemical products. Exporting electric and hybrid vehicles to Russia is also prohibited and additional restrictions have been introduced on the transit of certain goods and technologies destined for third countries through Russia.

New obligations for importers

From 30 September 2023, importers of iron and steel products processed in a third country must provide evidence of the country of origin of the iron and steel inputs used.

Restrictions on the transfer of IP rights

The new package prohibits the sale, licensing and transfer of intellectual property rights and trade secrets related to various goods and technologies targeted by Regulation No 833/2014.

Derogations to wind down business in Russia

The package creates derogations allowing Member States to authorise the sale, supply, or transfer of certain restricted goods until 31 December 2023 to facilitate the divestment or winding-down of business activities in Russia.