New EU economic sanctions against Russia

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EU institutions announced that the EU will respond with economic sanctions against those involved in Russian action against Ukraine.

On 21 February 2022, the Russian President recognised the independence of Donetsk and Luhansk, two non-government controlled separatist regions of Ukraine. He has since ordered Russian troops to enter Ukrainian territory.

EU institutions announced that the EU will respond with economic sanctions against those involved in Russian action against Ukraine. These sanctions, also known as restrictive measures, fall within the competence of the Council of the European Union (the “Council”) and are designed to respond to crises by putting pressure on key persons and strategic economic areas. 

As of 3 March 2022, the following restrictive measures have been adopted by the Council.

Restrictive measures against individuals


The Council adopted restrictive measures against the following individuals:

These individuals have been added to the list of sanctioned individuals under EU Regulation No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. The restrictive measures that apply to these listed individuals include:

In addition to these restrictive measures, the Council decided to suspend the provisions of the agreement between the European Community and the Russian Federation of 17 May 2007 relating to the facilitation of the issuance of visas. This means that from 28 February 2022, Russian diplomats, other Russian officials, and businesspeople will no longer be able to benefit from visa facilitation provisions.

Restrictive measures against entities


The Council adopted restrictive measures against the following entities:

These entities have been added to the list of sanctioned entities under EU Regulation No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. The restrictive measures applicable to the listed entities include a freeze on their funds and economic resources, as well as a ban on making funds or economic resources available to them, in the same way that these measures apply to individuals.[3]

Restrictive measures in the banking and financial sectors


The Council adopted restrictive measures in the banking and financial sectors which include:

Restrictive measures in other sectors of the economy


The Council adopted restrictive measures in other sectors of the economy which include: 

Supplements the existing restrictive measures


These newly adopted restrictive measures supplement those adopted progressively since 2014 as part of the EU’s policy of sanctioning Russia for undermining Ukraine’s sovereignty. For more details regarding the evolution of this sanctions regime, please refer to our newsflash on the subject.

Our expertise

 

Contact our experts Philippe-Emmanuel Partsch and Marianne Brésart in the EU Financial & Competition Law practice for assistance understanding these measures and how they could potentially impact your activities.

This communication, which we believe may be of interest to our clients and friends of Arendt, is for general information only. It is not a full analysis of the matters presented and should not be relied upon as legal advice.

 

[1] Funds are defined as financial assets and benefits of every kind, including, but not limited to: (i) cash, cheques, claims on money, drafts, money orders and other payment instruments; (ii) deposits with financial institutions or other entities, balances on accounts, debts and debt obligations; (iii) publicly and privately traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts; (iv) interest, dividends or other income on or value accruing from or generated by assets; (v) credit, rights of set-off, guarantees, performance bonds or other financial commitments; (vi) letters of credit, bills of lading, bills of sale; and (vii) documents showing evidence of an interest in funds or financial resources (Article 1(g) of Regulation (EU) No 269/2014).

[2] Economic resources are defined as assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but may be used to obtain funds, goods or services (Article 1(d) of Regulation (EU) No 269/2014).

[3] For more details, please refer to the first two bullet points of the list of restrictive measures described in section 1 Restrictive measures against individuals.

Download the press release

Luxembourg Newsflash – New EU economical sanctions against Russia

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