On 20 May, the EU adopted its 17th sanctions package against Russia. Brussels froze the assets of additional persons and entities, and widened the scope of export restrictions. Non-Russian companies have been hit with sanctions for having diverted products to Russia. With this package, the EU has widened its toolbox under the Hybrid Threat sanction regime and is expected to exercise its new powers soon.
New asset freezes
The 17th package introduces asset freezes for 38 natural persons and 67 entities. Asset freezes were imposed not only under Regulation (EU) 269/2014, but also under the Hybrid Threat-sanctions framework of Regulation (EU) 2024/2642, which sanctions persons for having engaged in destabilising activities in the EU and third countries through disinformation and cyberattacks and under the sanctions frameworks against Chemical Weapon proliferation and use in Regulation (EU) 2018/1542.
New export restrictions for dual-use-goods/advanced technology items irrespective of destination
Thirty-one companies have been added to Annex IV of Regulation (EU) 833/2014, which sanctions companies for having engaged in circumvention of the sanctions and diversion of items to Russia. It is prohibited to export dual-use goods and technologies as well as certain advanced technology to these Annex IV entities anywhere in the world (i.e. irrespective of the end-destination of the item). The newly listed entities include companies from Serbia, Türkiye, UAE, Uzbekistan and Vietnam.
Widening existing export restrictions
The EU replaced Annex VII, one of the main product lists for items, which may not be exported to Russia. Annex VII now includes more items that contribute to the development or production of Russia’s military systems, including chemical precursors to energetic materials and spare parts for machine tools.
EU hits Russian “Shadow Fleet”, extends oil price cap-exemption
Another 189 vessels have been added to the list of Russia’s “shadow fleet” -vessels, bringing the total to 342. These vessels have now restricted access to EU ports and locks and are banned from receiving a range of services related to maritime transport.
The package also extends the duration of an exemption from the oil-price cap, which allows, in view of Japan’s energy security concerns, the transport of crude oil originating in the Sakhalin-2 Project in Russia by vessel to Japan.
Expansion of the scope of Hybrid Threat Sanctions
The EU has expanded its toolbox under Hybrid Threat Sanctions in Regulation (EU) 2024/2642, allowing Brussels to impose transaction prohibitions relating to or involving tangible assets, such as vessels, aircraft, real estate, ports, airports, and physical elements of digital and communication networks, which are used for destabilising activities such as endangering critical infrastructure, espionage and other hybrid-threat operations.
The EU may also impose transaction bans on banks, financial institutions, or crypto-service providers or other persons who financially or otherwise support Russia’s destabilising actions.
In response to Russia’s state-led disinformation campaigns, the EU can now suspend the broadcasting licences of relevant Russian media outlets and ban them from broadcasting within the EU.
For more information on sanctions against Russia, Belarus and Russian occupied areas of Ukraine, consult your regular CMS contact or these CMS sanctions experts: Kai Neuhaus, LL.M. and Moritz Pottek.
.jpg)
