EU Implements 15th Sanctions Package Against Russia

The EU has adopted its 15th sanctions package targeting Russia’s continued aggression against Ukraine. This new set of measures strengthens enforcement, tackles circumvention, and expands restrictions on individuals, entities, and industries supporting the Russian war machine. Notably, the EU has imposed its first “fully-fledged” sanctions on specific Chinese actors aiding Russia’s military efforts.

Cracking Down on Russia’s Shadow Fleet

To counter evasion of the oil price cap, the EU has sanctioned 52 additional vessels from Russia’s “shadow fleet,” bringing the total to 79. These vessels, engaged in high-risk shipping activities like transporting Russian oil, arms, and stolen grain, now face bans on port access and service provisions. The sanctions also aim to address maritime safety and environmental risks posed by these often outdated and underinsured ships. Enhanced monitoring of Russian oil shipments and circumvention practices remains a top priority.

Expanded Individual and Entity Listings

The latest package sanctions 84 new entities and individuals, including Russian military companies producing aircraft parts, drones, electronics, and other high-tech weaponry. Key managers in Russia’s energy and shipping sectors are also targeted. Additionally, the EU has sanctioned:

• The military unit responsible for attacks on Ukraine’s Okhmadyt children’s hospital.
• Individuals involved in child deportation and propaganda efforts.
• Seven Chinese actors (one individual and six entities) for aiding sanctions circumvention and supplying sensitive components to Russia.
• Two senior officials from North Korea linked to troop deployment and support for Russia’s aggression.

Stricter Trade and Export Controls

Thirty-two companies, including firms from Russia, China, Serbia, Iran, India, and the UAE, have been added to the sanctions list. Stricter export restrictions now apply to dual-use and advanced technology goods supplied to these entities, curbing their support for Russia’s military-industrial complex.

Protecting EU Businesses

To shield EU operators from retaliatory Russian court rulings, the package prohibits recognition of specific Russian court decisions against EU companies. Extended derogations will also allow EU businesses more time to divest from Russia.

Financial Safeguards for EU Central Securities Depositories

New measures address increasing litigation risks in Russia:

• Loss recovery derogation: Enables the unfreezing of cash balances held by EU Central Securities Depositories (CSDs) to meet legal obligations.
• No liability clause: Exempts EU CSDs from compensatory obligations to Russia’s Central Bank beyond contractual interest.

Strengthening Sanctions Enforcement

EU sanctions aim to degrade Russia’s military and technological capabilities, cut off its access to global markets, and diminish its economic resources for war. Enhanced monitoring of anomalous trade flows and closer cooperation with third countries are central to combating sanctions circumvention. EU Sanctions Envoy David O’Sullivan continues outreach to key partners to ensure compliance.

Commitment to Peace

The EU remains steadfast in its goal of securing a just and lasting peace. Through robust sanctions and strategic enforcement, the EU seeks to erode Russia’s industrial base and hold accountable those enabling its aggression.

Source: EU adopts 15th sanctions package against Russia

aml.plus team