Brussels, June 24, 2024 — The European Council has approved a 14th package of economic and individual restrictive measures aimed at undermining the regime of Russian President Vladimir Putin and those supporting his ongoing war of aggression against Ukraine. These sanctions target key sectors of the Russian economy, including energy, finance, and trade, to further cripple Russia’s ability to sustain its military operations.
“Our sanctions have already significantly weakened the Russian economy and prevented Putin from accomplishing his plans to destroy Ukraine, although he still continues the illegal aggression targeting civilians and civilian infrastructure. The 14th package of sanctions demonstrates our unity in supporting Ukraine and seeking to limit Russia’s criminal activities against Ukrainians, including efforts to circumvent EU measures,” said Josep Borrell, High Representative for Foreign Affairs and Security Policy.
Key Measures in the Sanctions Package
Energy Sector: The EU will prohibit the reloading of Russian liquefied natural gas (LNG) within its territory to prevent the transshipment to third countries, reducing significant revenues for Russia. This ban includes both ship-to-ship and ship-to-shore transfers. Additionally, new investments in LNG projects under construction in Russia, such as Arctic LNG 2 and Murmansk LNG, will be forbidden.
Anti-Circumvention Efforts: To tackle circumvention, EU parent companies must ensure their subsidiaries do not engage in activities that undermine the sanctions. EU operators selling battlefield goods to third countries must implement due diligence mechanisms to prevent re-exportation to Russia. Moreover, transferring industrial know-how for battlefield goods production will require contractual provisions ensuring it is not used for Russian purposes.
Finance Sector: The use of Russia’s ‘System for Transfer of Financial Messages’ (SPFS) by EU entities outside of Russia will be outlawed. EU operators will also be barred from transactions with listed entities using SPFS outside of Russia. The package bans transactions with targeted financial institutions and crypto asset providers that facilitate support for Russia’s defense-industrial base.
Funding Restrictions: To counter Russian interference in EU democratic processes, political parties, foundations, NGOs, and media service providers in the EU will be prohibited from accepting funding from the Russian state and its proxies.
Transport Measures: The EU has adopted measures targeting specific vessels supporting Russia’s war efforts, subjecting them to port access bans. This includes tankers part of Putin’s “dark fleet” which circumvent EU sanctions. The EU flight ban will be expanded to non-scheduled flights where Russian entities determine the place or time for take-off or landing.
Import-Export Controls: The Council has added 61 new entities to the list of those supporting Russia’s military, introducing tighter export restrictions on dual-use goods and technology. This includes entities from third countries involved in the circumvention of trade restrictions. Additional restrictions are placed on items that enhance Russian industrial capabilities.
Protection of EU Operators: The package includes measures allowing EU operators to claim compensation for damages caused by Russian companies due to sanctions and expropriation.
Intellectual Property and Cultural Property: Restrictions will be imposed on the registration of intellectual property rights by Russian nationals and companies in the EU. It will also be forbidden to trade in Ukrainian cultural property suspected of being unlawfully removed.
The legal acts detailing these measures will be published in the Official Journal of the EU.
The European Council reiterated its unwavering support for Ukraine’s independence, sovereignty, and territorial integrity. Previous Council conclusions have emphasized the need to weaken Russia’s war capabilities and fully implement sanctions. In May 2024, the Council approved using unexpected revenues from sanctions for further military support to Ukraine.
Josep Borrell emphasized, “The 14th package of sanctions demonstrates our unity in supporting Ukraine and seeking to limit Russia’s criminal activities against Ukrainians.”
Editor: Gabriel Ani
