Introduction
With this new sanctions package, the European Commission is targeting energy-related measures to impact the financing of the Russian war. Additionally, various ships have been placed on the sanctions list. The new sanctions package also includes measures that do not directly affect the movement of goods and services.
We have summarized the most important measures – related to the movement of goods and services – below.
Energy-related measures
As part of the EU's joint effort to phase out the use of Russian gas, individual member states are granted the authority, under very strict conditions, to take measures to temporarily ban Russian gas or LNG. This is permitted if it is necessary for the national security interests of the respective member state. The new package will introduce a ban on investments in future LNG projects (liquefied natural gas) and on exports to LNG projects under construction in Russia. After a nine-month transition period, it will be prohibited to use EU ports for the transport of Russian LNG. Additionally, the new package prohibits the import of Russian LNG to specific terminals that are not connected to the EU gas pipeline network.
Ships placed on the sanctions List
As of April 28, 2024, a total of nine luxury vessels were already under customs supervision in connection with the sanctions against Russia. Customs estimate the total approximate value to be €480 million. In the context of nautical measures, an additional 27 ships have now been added to the sanctions list with the 14th sanctions package. This sanctions list may be further expanded in the future.
Dual-Use provisions
The package adds 61 entities to the list of natural and legal persons, entities, and bodies that provide support to Russia's military-industrial complex in its war of aggression against Ukraine. Entities on this list are subject to stricter export restrictions on dual-use goods and technology, as well as goods and technology that could contribute to the technological strengthening of the Russian defense and security sector.
Increased Import Duties on Products from Russia and Belarus
Effective July 1, 2024, higher import duties will apply to a number of products originating from Russia or Belarus. This includes cereals, oilseeds and derived products, beet pulp pellets, and dried peas. The higher import duties will apply in three situations::
1. Non-preferential origin is Russia or Belarus;
2. Products are exported from Russia or
Belarus; or
3. Non-preferential
origin is not Russia or Belarus and statistical origin is a third country other
than Russia or Belarus, but it is known that the goods have been transported
from Russia or Belarus to this third country and placed in free circulation.
Dutch Customs requires declarants to provide a special code if one of the above conditions is met. This code is referred to in Dutch as a ''bescheidcode''. The importer must indicate code Y155 in the customs declaration for the release of the goods for free circulation.
The above conditions do not apply to transit shipments. In this case, no code is required.
Banks
Many banks, in addition to adhering to existing sanctions, refuse to facilitate transactions with Russia based on their internal policies. This does not mean that these transactions are prohibited under current sanctions legislation.
However, measures against banks have also been further tightened with the 14th sanctions package. Additionally, a ban on the use of the financial messaging system "SPFS" has come into effect.
Cybercrime
The EU Foreign Affairs Council has adopted sanctions against six Russian individuals responsible for extensive cyberattacks that have caused significant damage within the EU, such as hacks on banks and ransomware attacks on the healthcare sector. With these sanctions, the EU has taken an important step towards a safer cyber domain. In addition to tackling cyber espionage and cyber sabotage, for the first time, cybercriminals who cause major societal harm for financial gain are being targeted. These criminals now face personal consequences for their malicious behavior, and the sanctions also affect individuals and entities doing business with these criminals.
Other measures
The EU has frozen a substantial amount of assets belonging to Russian individuals, groups, and entities. With the introduction of the latest two sanctions packages, it is now possible to use these assets for the defense, industry, and reconstruction of Ukraine. As a result, Russia is contributing to the recovery of Ukraine, thanks to the EU's efforts
Would you like to know more about the 14th sanctions package or previously issued sanctions? Please feel free to contact one of our specialists.