EU Adopts New Round of Sanctions Directed at Russia

On 24 June 2024, the European Union adopted its 14th round of sanctions (EU Regulation 2024/1745), amending EU Regulation No. 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine.

This round of sanctions aims to reduce the violation and circumvention of sanctions by means of strengthening due diligence obligations and bolster prohibitions on re-exportation to Russia and use in Russia of specified sensitive goods and technology. Noting that Russia derives significant revenues from the sale and transport of liquified natural gas (LNG), the Regulation prohibits ship-to-ship transfers, ship-to-shore transfers, and re-loading operations for the transshipment of Russian LNG, save for delineated exceptions.

see also: ICC Briefing Paper on Amendments

The Regulation prohibits EU entities from directly connecting to the ‘System for Transfer of Financial Messages’ (SPFS) or equivalent services developed by the Central Bank of Russia. The Regulation also establishes a transaction ban on EU operators with non-EU credit and financial institutions as well as crypto assets providers when the EU Council has determined that those non-EU entities facilitate transactions that support Russia’s defence-industrial base.