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A new package of sanctions against the Russian Federation: bans on the transport industry

05 July
2023

 

The European Union (EU) adopted the 11th package of sanctions against the Russian Federation in connection with the war started in Ukraine. Logist.Today learned about this from a message published on the official website of the European Union.

The 11th package includes provisions on trade, transport, energy and a number of other measures.

Transport measures

- A complete ban on trucks with Russian trailers and semi-trailers to transport goods to the EU. This will make it possible to stop circumventing the ban on Russian freight road operators transporting goods to the EU.

- Prohibition of access to EU ports for ships carrying out transshipment from ship to ship, suspected of violating the ban on the import of Russian oil or the price limit of the G7 Coalition.

- Prohibition of entering EU ports for ships, unless the ship notifies the competent authority at least 48 hours before a ship-to-ship transfer that takes place in the exclusive economic zone of a Member State or within 12 nautical miles from the baseline of that State's coast- member .

- Denying access to EU ports for vessels that tamper with or disable their navigational tracking system when transporting Russian oil subject to the G7 oil import ban or price cap.

Trade events

- New Anti-Circumvention Tool: This will allow the EU to restrict the sale, supply, transfer or export of certain sanctioned goods and technologies to certain third countries whose jurisdictions are considered to be subject to a persistent and particularly high risk of circumvention. This new anti-circumvention tool will be an exceptional and last-resort measure when other individual measures and EU engagement with the third countries concerned have proved insufficient to prevent circumvention.

- extension of the ban on the transit of some dual-purpose goods (for example, advanced technologies, aviation materials) exported from the EU to third countries via Russia. This will also reduce the risk of circumvention.

- Adding 87 new organizations to the list of those that directly support the military-industrial complex of the Russian Federation in its aggressive war against Ukraine. They are subject to stricter restrictions on the export of dual-purpose goods and advanced technologies. In addition to the listed Russian and Iranian organizations, organizations registered in China, Uzbekistan, the United Arab Emirates, Syria and Armenia are now also being extended.

- Restrictions on the export of 15 more technological units found on the battlefield in Ukraine, or the equipment necessary for their production. The work is carried out in close cooperation with partners, and Switzerland has been added to the list of partner countries.

- Strengthening restrictions on the import of iron and steel products by requiring importers of iron and steel processed in the third quarter to be subject to sanctionsRaini, to prove that the resources used do not come from the Russian Federation.

- Prohibition on the sale, licensing, transfer or transfer of intellectual property rights and trade secrets used in connection with the restricted goods to prevent the mere production of the sanctioned goods outside the EU.

- Extending the export ban on luxury cars to all new and used cars with an engine capacity above a certain amount (> 1900 cm³), as well as to all electric and hybrid cars.

- Complete ban on some types of machine components.

- Simplifying the structure of the Industrial Goods Annex by listing restricted products in a single section and with broader product definitions to better identify goods subject to export bans and reduce the possibility of evading sanctions through misclassification.

Energy measures

- The possibility of importing Russian oil through a pipeline to Germany and Poland has disappeared.

- Introducing strict and highly targeted derogations from existing export bans to ensure the maintenance of the KPC (Caspian Pipeline Consortium) pipeline, which transports Kazakh oil to the EU via the Russian Federation.

- continuation of the exclusion from the limit prices for Sakhalin oil for Japan (until March 31, 2024).

Additional measures

Additional measures concern more than 100 additional individuals and legal entities subject to asset freezing. This includes the highest military ranks, people who make decisions about war, people involved in the illegal deportation of Ukrainian children to the Russian Federation, judges who made politically motivated decisions against Ukrainian citizens, people responsible for looting cultural heritage, businessmen, propagandists, as well as Russian IT companies providing critical technology and software to Russian intelligence, banks operating in occupied territories, and organizations working with the Russian armed forces.

Also, the 11th package of sanctions provides for:

- Revision of the criteria for inclusion in the list of persons/organizations involved in circumventing EU sanctions, including those that significantly disrupt EU sanctions.

- Addition of a new criterion for inclusion in the list of persons and organizations working in the Russian IT sector with a license of the Federal Security Service of the Russian Federation (FSB) or the Ministry of Industry and Trade of the Russian Federation.

- Addition of an indent allowing the sale of ownership rights in a Russian joint venture jointly owned with a listed person.

- addition of an indent, which allows disposal of certain types of securities belonging to the specified organizations.

- Making some clarifications to the provision on the exchange of information between competent authorities and on maintaining the confidentiality of communications between lawyers and their clients in the context of reporting obligations.

- addition of a derogation allowing the provision of services necessary for the creation of a firewall that removes the control of the listed person over the assets of the EU entity.

- adding exceptions for the provision of pilotage services under certain circumstances.

- Continuation of the media ban on 5 additional channels.

- Additional provisions on information exchange and reporting.

- Introduction of a temporary delay, which allows the provision of prohibited services, which are required by law for the withdrawal of Russian operators from the EU.