The Council of the European Union has approved an additional set of economic and individual restrictive measures specifically targeting Russia. These measures are designed to undermine Russia’s ability to pursue its military activities by targeting key economic sectors and making it more difficult to evade EU sanctions.
The measures include:
- Restrictions on diamonds: A direct or indirect ban on the import, purchase or transfer of diamonds from Russia has been introduced. This restriction covers both natural and synthetic diamonds, as well as jewelery with Russian diamonds processed in third countries. This action is part of a G7 strategy to deprive Russia of this important source of revenue.
- Russia Exclusion Clause: A clause has been introduced requiring EU exporters to prohibit re-exports to Russia. This clause covers prohibited items found in Russian military systems in Ukraine and items crucial to the development, production or use of such systems, as well as aviation goods and weapons.
- Import-export controls and restrictions: 29 entities have been added to the list of direct support to the Russian military and industrial structure, subject to export restrictions on dual-use goods and technologies contributing to Russia’s defence and security sector. In addition, the list of restricted items has been extended to include chemicals and lithium batteries, with a total annual value of €2.2 billion.
- Enforcement and anti-evasion measures: Today’s decision includes a ban on Russian nationals owning, controlling or holding any position in the governing bodies of legal persons, entities or bodies that provide crypto-asset account or custody services to Russian persons and residents. To further limit circumvention, today’s decision includes a prohibition on Russian nationals owning, controlling or holding any position in the governing bodies of legal persons, entities or bodies that provide crypto-asset wallet, account or custody services to Russian persons and residents. In addition, the existing prohibition on the provision of services will be extended to include also the provision of business management software and software for industrial design and manufacturing.
- Enforcement of the oil price cap: Stricter rules have been introduced to support the oil price cap and the exchange of information has been strengthened to better identify entities engaged in fraudulent practices in the transportation of Russian crude oil.
- Iron and steel: The phase-out period for imports of specific steel products has been extended and Switzerland has been added to the list of countries with restrictive measures on imports of iron and steel from Russia.
These additional sanctions, together with the addition of other persons and entities to the sanctions list, are aimed at undermining Russia’s ability to continue its aggression against Ukraine. The Council also underlines the EU’s commitment to the freedom and sovereignty of Ukraine.
With the collaboration of José Luis Iriarte, Professor of International Private Law at the Universidad Pública de Navarra.
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