New EU Sanctions Against Belarus Call For 'No-Belarus Clause' in Contracts
The EU on June 29 expanded its sanctions on Belarus for its role in Russia's war in Ukraine to better align it with the restrictions imposed on Russia and address sanctions evasion issues, including by requiring companies to insert a “no-Belarus clause” in their contracts.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Under the new clause requirement -- which is similar to the bloc’s existing no-Russia clause (see 2402270046) -- EU companies must insert language in new contracts to signal certain products can’t be sent to Belarus. This clause will “contractually prohibit the re-exportation to Belarus or re-exportation for use in Belarus of sensitive goods and technology, battlefield goods, firearms and ammunition,” the Council of the European Union said.
Companies shipping certain “battlefield goods” to third countries also will need to implement due diligence mechanisms “capable of identifying and assessing risks of re-exportation to Russia and mitigating them,” the council said. And EU parent companies must “undertake their best efforts” to make sure their subsidiaries in third countries aren’t helping Belarus evade sanctions.
The EU also imposed new export controls on "maritime navigation goods and technologies, and luxury goods” and barred the direct or indirect import of gold, diamonds, helium, cola and mineral products, including crude oil, from Belarus. The import ban will be supplemented by an export ban on "goods and technologies suitable for use in oil refining and the liquefaction of natural gas."
The sanctions also include a host of services bans on Belarus, including the provision of accounting, auditing, bookkeeping, tax consulting, public relations, architectural, engineering, legal advisory, IT consultancy, advertising and market research services.
The new measures also address the anti-circumvention of EU sanctions, including a requirement that EU exporters insert a "no-Belarus clause" into future contracts -- similar to the bloc's no-Russia clause -- under which the companies commit to barring the reexportation to Belarus of "sensitive goods and technology, battlefield goods, firearms and ammunition." The bloc also barred the transit of dual-use goods and technologies through the territory of Belarus.