New sanctions against Russia over the war against Ukraine, adopted Monday, focus on cracking down on Russia’s shadow fleet, North Korean officials, and Chinese firms making drones for Moscow.
“Russia continues its brutal attack against Ukraine and Ukrainian people,” said the EU’s new foreign policy chief Kaja Kallas: “This package of sanctions is part of our response to weaken Russia’s war machine and those who are enabling this war, also including Chinese companies.”
The EU’s 15th package of sanctions against Russia includes substantial individual and entity listings related to the Russian military-industrial complex and increases the legal protection of EU Central Securities Depositories (EU CSDs).
The EU has for the first time imposed fully-fledged sanctions, including travel bans, asset freezes and prohibition to make economic resources available, on various Chinese actors.
Anti-circumvention measures target 52 new vessels from Russia’s shadow fleet, increasing the total number of such listings to 79. These vessels (non-EU) are subject to a port access ban and a ban on provision of services. These ships have been found to be engaged in high-risk shipping practices when transporting Russian oil or petroleum products, in arms deliveries, grain theft, or supporting the Russian energy sector.
Additional listings include 54 individuals and 30 entities, responsible for actions undermining the territorial integrity, sovereignty, and independence of Ukraine. They are now subject to asset freezes, and – in the case of individuals – also to travel bans. Listings primarily affect Russian military companies that manufacture aircraft parts, drones, electronics, engines, high-tech components for weapons, and other military equipment.
The EU is also sanctioning the military unit responsible for the striking of the Okhmadyt children hospital in Kyiv as well as individuals responsible for children deportation and propaganda.
Fully-fledged listings have been placed on seven Chinese persons and entities, namely one individual and two entities facilitating the circumvention of EU sanctions, and four entities supplying sensitive drone components and microelectronic component to the Russian military industry in support of Russia’s war of aggression against Ukraine.
The package also adds 32 new companies to the list of those supporting Russia’s military and industrial complex in its war against Ukraine (20 Russian firms, seven under Chinese/Hong Kong jurisdiction, two from Serbia, and one each from Iran, India and United Arab Emirates Emirates). Stricter export restrictions with respect to dual-use goods and technology, and advanced technology items, will now apply to them.
The measures include a prohibition to recognise or enforce in the EU some specific rulings issued by Russian courts that give exclusive mandatory competence to Russian courts in disputes between Russian and EU companies, regardless of the prior agreement of the parties. This will protect EU companies from the recognition of damages illegally awarded against them in Russia.
In order to address the increasing litigation and retaliatory measures in Russia that result in the seizing of assets of EU Central Securities Depositories (CSDs), the package introduces two important amendments:
A loss recovery derogation: This will allow for the release of cash balances held by EU CSDs. This derogation will enable CSDs to request competent authorities of the Member States to unfreeze cash balances and use them to meet their legal obligations with their clients.
A no liability clause for EU CSDs: This clarifies that EU CSDs are not liable to pay interest or any other form of compensation to the Central Bank of Russia, beyond interest contractually due.
