Recently, AKD published a Q&A on the sanctions imposed on Russia by the EU in response to the assault on Ukraine. This update follows the recent imposition of new sanctions.

UPDATE AS PER 14 MARCH 2022, based on latest decisions made by European Council on 9 March 2022

Russia

The European Council introduced further restrictive measures with regard to the export of maritime navigation goods and radio communication technology to Russia. It is now prohibited to sell, supply, transfer or export, directly or indirectly, maritime navigation goods and technology to any natural or legal person, entity or body in Russia, for use in Russia, or for the placing on board of a Russian-flagged vessel.

The Council also expanded the list of legal persons, entities and bodies subject to the prohibitions related to investment services, transferable securities, money market instruments, and loans. This decision complements the listings of oligarchs involved in the oil, gas, banking, media and transport sectors, decided by the Council on 23 and 28 February 2022.

Lastly, the Council clarified the notion of “transferable securities” by explicitly including crypto-assets, thus ensuring the proper implementation of the sectoral restrictions in place.

Altogether, EU restrictive measures now apply to a total of 862 individuals and 53 entities. Those designated are subject to an asset freeze, and EU citizens and companies are forbidden from making funds or economic resources available to them. Natural persons are additionally subject to a travel ban, which prevents them from entering or transiting through EU territories.

Belarus

In the end of February and the beginning of March 2022, restrictive measures were implemented on high ranked members of Belarusian military personnel in view of their role in the decision making and strategic planning processes that led to the Belarusian involvement in the Russian aggression against Ukraine.

In relation to Belarus, the Council has introduced further restrictions in the trade of goods used for the production or manufacturing of tobacco products, mineral fuels, bituminous substances and gaseous hydrocarbon products, potassium chloride (“potash”) products, wood products, cement products, iron and steel products and rubber products. Further restrictions were also imposed on exports of dual-use goods and technology, and certain advanced goods and technology which might contribute to Belarus’ military, technological, defence and security development, together with restrictions on the provision of related services.

Following up on these already existing restrictive measures, the Council adopted additional sectoral measures targeting the Belarusian financial sector on 9 March 2022. The agreed measures will:

• restrict the provision of specialised financial messaging services (SWIFT) to Belagroprombank, Bank Dabrabyt, and the Development Bank of the Republic of Belarus, as well as their Belarusian subsidiaries;
• prohibit transactions with the Central Bank of Belarus related to the management of reserves or assets, and the provision of public financing for trade with and investment in Belarus;
• prohibit the listing and provision of services in relation to shares of Belarus state-owned entities on EU trading venues as of 12 April 2022;
• significantly limit the financial inflows from Belarus to the EU, by prohibiting the acceptance of deposits exceeding €100,000 from Belarusian nationals or residents, the holding of accounts of Belarusian clients by the EU central securities depositories, as well as the selling of euro-denominated securities to Belarusian clients; and
• prohibit the provision of euro denominated banknotes to Belarus.

Future developments

On 11 March 2022, European leaders announced that a next package of sanctions was in the making, without giving any specifics. Also, persons have been targeted by sanctions based in response to recent behaviour. This illustrates the evolving nature of EU sanctions and export controls, and the relevance of keeping up-to-date and ensuring that decisions are based on the most recent information.

I have some further questions. Who can I contact at AKD?

At AKD, Sebastiaan Moolenaar, Vincent de Bruijn and Philippine Beerman are our primary points of contact.