6th Package of Sanctions Against Russia: Council Regulation (EU) 2022/879

The 6th package of sanctions imposed by the European Union on Russia for its actions in Ukraine entered into force on the 4^th of June. It contains, in particular, Regulation (EU) 2022/879 amending Regulation (EU) 833/2014 concerning restrictive measures in view of Russia’s actions in Ukraine. It complements previous sanctions that have progressively been put in place by the EU since 2014 in response to Russia’s behaviour. They encompass different types of sanctions, including:

• Freezing the assets of key Russian leaders;
• Restricting Russia’s access to European capital markets;
• Excluding some banks from the Swift system and freezing the assets of the Central Bank of Russia;
• Prohibiting Russian Media Russia Today and Sputnik from broadcasting in the EU;
• Closing EU airspace, ports, and roads to Russian transport operators;
• Prohibition on imports (coal, iron, steel, wood, cement, seafood, and liquor) and exports (arms, dual-use goods, goods and technology in the aviation, maritime and space industry, and luxury goods).

A further detailed list with links to relevant legislation is available on the European Council and Council of the European Union website.

Council Regulation (EU) 2022/879 of 3 June 2022, mainly introduces the following provisions:

– Concerning oil, a ban on the purchase, import or transfer of crude oil (to come into force in December 2022) and certain refined petroleum products (to come into force in February 2023) from Russia to the EU. However, temporary exemptions, which do not concern France, are granted to Member States which, due to their circumstances, would be disproportionately affected by such restrictions.

– As for financial sanctions, the prohibition to provide specialised financial messaging services (SWIFT) is extended to three other Russian credit institutions (Sberbank, Credit Bank of Moscow and Russian Agricultural Bank) and to the Belarusian Bank for Development and Reconstruction.

– Russian channels Rossiya RTR/RTR Planeta, Rossiya 24/Russia 24 and TV Centre International have been added to the list of media affected by the EU broadcasting ban.

– Import and export restrictions are extended, including:

• • The list of persons and entities affected by export restrictions on dual-use goods and technology has been extended;
  • The same applies to the list of goods and technologies that could strengthen Russian defence and security sectors;
  • The list of goods and technologies prohibited for purchase, import, transfer, and brokering has been updated as well.

– Regarding services, it is prohibited to provide, directly or indirectly, technical assistance, brokering services, financing or financial assistance or any service linked to the exploitation of natural resources, as well as accounting, auditing, including statutory audit, bookkeeping or tax consulting services, or business and management consulting or public relations services to the Russian government or to legal persons, entities or bodies established in Russia (there are some exceptions to that). It is also prohibited to register, provide a registered office, business or administrative address as well as management services to, a trust or any similar legal arrangement having as a trustor or a beneficiary Russian nationals or natural persons resident in Russia or Russian legal persons, entities or bodies.

To find out more about the impact of these new measures on your business, please contact us at contact@custax.com.