Reed Smith In-depth

On Friday 16 December, the EU introduced further economic and individual sanctions against Russia in response to the war of aggression against Ukraine and the purported annexation of Ukraine’s Donetsk, Luhansk, Zaporizhzhia, and Kherson regions (referred to as the “ninth sanctions package”).

Bringing to nine the number of packages adopted against Russia since the inception of the conflict in February 2022, this latest package includes an extension of the lists of restricted items under Annex VII, Annex XI, Annex XXIII, and Annex XXI and expands the lists of entities connected to Russia’s military and industrial complex, on whom tighter export restrictions apply. In addition, the new package extends the suspension of the broadcasting licences, targets Russian mining sector, prevents Russia’s access to drones, prohibits EU nationals to hold any posts on the governing bodies of all Russian State-owned or controlled legal persons, entities, or bodies, amends the import ban on steel products, and introduces sanctions against three additional Russian banks.

The batch of new measures introduced as part of the ninth sanctions package includes changes to Council Regulation (EU) 833/2014, which imposes sectoral sanctions against Russia, and Council Regulation (EU) 269/2014 imposing asset freezing measures against key entities and individuals in Russia’s economy, military, and political scene.

This alert reviews the new measures below.

Restrictions on export and import of goods from and to Russia

Goods which might contribute to Russia’s military and technological enhancement or the development of its defence and security sector (article 2a) and dual-use (article 2)

The new sanctions package extends the list of items subject to an export ban under Annex VII to include drone engines, camouflage gear, further chemical and biological equipment, riot control agents, and electronic components.

The new package also expands the list of entities connected to Russia’s military and industrial complex on whom tighter export restrictions regarding dual-use and Annex VII items are imposed. The new package adds 168 new entities to Annex IV, including certain Russian-controlled entities based in Crimea and Sevastopol.

Goods suited for the aviation sector (article 3c)

The ninth sanctions package introduces further export restrictions on goods and technology suited for use in aviation or the space industry, as listed in Annex XI, to include spark-ignition reciprocating or rotary internal combustion piston engine for aircraft (CN 8407.10) and parts suitable for use solely or principally with internal combustion piston engine for aircraft (CN 8409.10).

There is a wind-down period until 16 January 2023 for the execution of contracts concluded before 17 December 2022.