EU's New Russia Sanctions Package Includes Measures to Target Evaders
The EU levied its 11th sanctions package against Russia June 23, imposing a host of new export restrictions, individual designations and "new tools to counter circumvention and information warfare," the European Council announced. The new designations target 71 people and 33 entities involved in military activities, political decision-making, the spread of disinformation, the forced adoption of Ukrainian children to Russia and Russian information technology companies offering technology to Russian intelligence agencies.
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Individual Sanctions
The sanctions include the first listing relating to sanctions circumvention and expanded the scope of the criteria the EU uses to designate parties involved in circumvention. That now includes those "significantly frustrating the restrictive measures in such a way as to contribute to Russia’s capacity to wage war."
Another new listing criteria was added to cover IT companies that provide "critical technology and software to the Russian intelligence community," the council said. Under the criteria, the council sanctioned companies holding a license administered by the Federal Security Service or Russia's Ministry of Industry and Trade.
The new entries included the Foundation for the Support and Protection of the Rights of Compatriots Living Abroad, which helps implement the "foreign policy goals" of the Russian government; members of the judiciary who "took politically motivated decisions" against Ukranians opposed to Russia's invasion of Crimea; banks operating in Donetsk, Luhansk, Kherson and Zaporizhzhia; and more.
Anti-Circumvention Measures
As part of a new anti-circumvention tool, the council also said it plans to sanction parties in third countries who are helping Russia evade sanctions. The bloc will take "rapid, proportionate and targeted action" in the form of "appropriate individual measures" against those people and companies, and will take "exceptional, last resort measures" against third-parties that continue to violate Russia sanctions. That may include restricting the "sale, supply, transfer or export of goods and technology whose export to Russia is already prohibited -- notably battlefield products and technologies -- to third countries whose jurisdiction is demonstrated to be at a continuing and particularly high risk of being used for circumvention."
Transit Ban and Export Controls
The transit ban bars the transport through Russia of more goods and technology that can bolster Russia's military or its defense or security sector. The ban also extends to goods used in the aviation or space industry and jet fuel and fuel additives shipped from the EU to third countries.
An additional 87 entities were subjected to greater dual-use export controls. Among the entities are four third-country parties that make drones and provide them to Russia, various third-country entities that help circumvent trade restrictions and various Russian companies involved in the supply of electronic parts for Russia's military, the council said.
The council also expanded the list of items subject to export controls to include "electronic components, semiconductor materials, manufacturing and testing equipment for electronic integrated circuits and printed circuit boards, precursors to energetic materials and precursors to chemical weapons, optical components, navigational instruments, metals used in the defence sector and marine equipment."
Roads, Ports and Energy
The council also banned trailers and semi-trailers registered in Russia from transporting goods into the bloc by road and barred access to EU ports and locks to any vessels undertaking ship-to-ship transfers if there is "reasonable cause" to suspect the vessel is violating the ban on Russian crude oil or the price cap. This restriction will also apply to vessels suspected of switching off their navigation system when shipping Russian oil in violation of international standards, the council said.
The council also said the "temporary derogation granted to Germany and Poland for the supply of crude oil from Russia through the northern section of the Druzhba oil pipeline will end." Oil coming from Kazakhstan or another third country will continue to be allowed to flow through Russia via the Druzhba pipeline, the council said.