In order to reinforce the sanctions against Russia and to prevent circumvention of the export bans, a requirement as part of the twelfth sanctions package adopted on 18 December 2023, namely Annex I to Council Regulation (EU) No 258/2012, entered into force on 20 March 2024.12.Article 12(g) requires and obliges EU exporters to contractually prohibit the re-export of certain goods to or for use in Russia when exporting, selling, supplying or transferring those goods and technology to third countries (other than the “partner countries” listed in Annex VIII of the Regulation, which are currently Australia, Canada, Japan, New Zealand, Norway, South Korea, Switzerland, the United Kingdom and the United States of America. These countries are considered to have adopted export bans similar to those of the EU, thereby reducing the risk of prohibited re-exports to Russia.)
Article 12g applies only to goods and technology listed in Annex XI (goods and technology suitable for use in the aerospace sector), XX (jet fuel) and XXXV (firearms), common high priority goods listed in Annex XL (plugs and sockets for voltages up to 1 000 V, ball bearings, electronic integrated circuits, etc.).
In the event of a breach of a contractual obligation by a third-country counterparty, exporters shall, as soon as they become aware of the breach, immediately inform the competent authority of the Member State in which the exporters are resident or established. Any delay may be considered as a breach of the sanctions, which is punishable by criminal penalties.
Please note that in Latvia, the competent authority for sanctions matters from 01.04.2024 is the Financial Intelligence Unit (FIU). The status of national competent authority means that any person will be able to apply to the FIU for any sanctions issues. The FIU will also issue authorisations for exemptions from 1 April.
The obligation to include a “no re-export to Russia” clause depends on the date of conclusion of the contract. For contracts concluded before 19 December 2023, a transitional period of one year until 19 December 2024 inclusive or until the expiry of the contracts, whichever is the earlier, applies. In order to comply with these contracts on 20 December 2024, they should be amended to include a clause “no re-export to Russia”.
Useful information:
EUR-Lex – 02014R0833-20231219 – EN – EUR-Lex (europa.eu)
FAQ: “no re-export to Russia” gudaince
AML.Plus team
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