On Monday, 16 December 2024, the EU adopted its 15th package of sanctions against Russia. Its scope and reach fall significantly short of the sanctions package adopted on 24 June 2024 (article of 26 June 2024).
The new sanctions package mainly focusses on preventing circumvention of the sanctions against Russia. In pursuing this goal, it targets additional vessels in Russia’s dark fleet and actors in third countries linked to the Russian military-industrial complex.
The 15th sanctions package also contains protective measures for EU central securities depositories, and seeks to better protect EU companies against against Russian claims by prohibiting the recognition or enforcement in the EU of certain rulings issued by Russian courts. In addition, certain derogations have been extended, including the options available to Member States for authorising transactions in connection with the divestment from Russia.
With the measures adopted in the 15th sanctions package on 16 December 2024, the EU is selectively tightening and adjusting its sanctions against Russia and Belarus. Regulation (EU) 2024/3189 and Implementing Regulation (EU) 2024/3183 make amendments to the largely personal financial sanctions set out in Regulation (EU) 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. Regulation (EU) 2024/3192, however, amends the largely trade-related sanctions from Regulation (EU) 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine. The 15th sanctions package also introduces Implementing Regulation (EU) 2024/3177, which expands the personal sanctions provided for in Regulation (EU) 765/2006 on restrictive measures in view of the situation in Belarus and Belarus’ involvement in Russia’s aggression against Ukraine. Lastly, Implementing Regulation (EU) 2024/3188 expands on the personal sanctions in Regulation (EU) 2024/2642 concerning restrictive measures in view of Russia’s destabilising activities to include new natural and legal persons, entities and bodies.
Further entities added to Annex IV to Regulation (EU) 833/2014
The EU has added another 32 entities from Russia, Serbia, Iran, Hong Kong, China, India and the UAE to the list of persons, entities and bodies supporting Russia’s military-industrial complex in its war of aggression against Ukraine. These include companies in third countries that play a role in circumventing export restrictions, especially where this facilitates Russia’s drone programme. The direct effect of inclusion in Annex IV to Regulation (EU) 833/2014 is relatively minor, merely increasing the obstacles to obtaining special authorisation to export sanctioned goods to the listed recipients. What is more important is that inclusion in this Annex indicates that goods supplied to the listed companies may have a military end use.
Taking into consideration Article 4 (1) Regulation (EU) 2021/821, exporting companies should regularly check their customer base to see whether they supply companies listed in Annex IV.
Additional Russian dark fleet ships listed
A further 52 ships have been added to the list in Annex XLII to Regulation (EU) 833/2014 under the 15th sanctions package. These are vessels involved in circumventing the oil price cap, transporting military equipment to Russia and/or transporting stolen Ukrainian grain. The listed ships are subject to the restrictions in Article 3s Regulation (EU) 833/2014, which means that they must not be granted access to ports, anchorage zones or locks in the territory of the Union. A large number of commercial activities in relation to these ships (such as purchasing, chartering, operating) and the provision of services (such as bunkering) for these vessels are also prohibited.
Port operators and companies in the maritime services sector, in particular, should ensure that their compliance processes take account of these new additions.
New personal sanctions
By expanding the lists in Annex I to Regulation (EU) 269/2014, Annex I to Regulation (EU) 765/2006 and Annex I to Regulation (EU) 2024/2642, the 15th sanctions package imposes personal sanctions on a number of additional persons, entities and bodies. Their assets in the EU are being frozen, no funds or economic resources may be made available to them and they are prohibited from entering the EU. For the first time, personal sanctions have also been imposed on Chinese persons and companies in connection with Russia’s war of aggression against Ukraine, based on their involvement in Russia’s drone programme or the circumvention of sanctions.
Special rules for EU central securities depositories
The EU has amended Article 6b Regulation (EU) 269/2014 and Article 5a Regulation (EU) 833/2014 in response to the seizure of assets held in Russia by EU central securities depositories (CSDs). The new provisions will both allow EU CSDs to release Russian cash balances to meet their legal obligations and reduce the liability risks of EU CSDs and their employees.
Protection from Russian court rulings
By adding the new Article 11c to Regulation (EU) 833/2014, the EU is strengthening the measures protecting EU companies against Russian claims. Article 11c of Regulation (EU) 833/2014 prohibits EU Member States from recognising Russian court rulings made under Article 248 of the Russian Arbitration Procedural Code.
Transition periods extended
Finally, the 15th sanctions package extends the transition periods for certain authorisation procedures and derogations that were set to expire on 31 December 2024 by another year. This applies to certain authorisation procedures for frozen assets (Article 6b(5f) Regulation (EU) 269/2014), certain Croatian and Czech oil imports (Article 3m(6), (8) Regulation (EU) 833/2014), winding down joint ventures with Russian participation (Article 5aa(3), (3a) Regulation (EU) 833/2014) and to authorisations facilitating EU companies’ divestment from Russia (Article 11(4), Article 12b Regulation (EU) 833/2014).
Interestingly, the corresponding Recital (9) of Regulation (EU) 2024/3192 now explicitly recommends “winding down businesses in Russia and/or not to start new businesses there” due to the “risks of maintaining business activities in Russia”.
Outlook
With its extensive listings of third-country individuals and entities and the explicit recommendation to wind up business activities in Russia, the 15th sanctions package is certainly intriguing in terms of sanctions policy. In practice, however, it has significantly fewer ramifications for EU companies than earlier packages did. EU companies will primarily need to ensure they take note of the new listings relevant to their lines of business.
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