15th sanctions package: EU focuses on companies in third countries

This week, the members of the EU Council decided on stricter export controls against several dozen individuals, organizations and companies – some of them in third countries such as China, India, Iran, Serbia and the United Arab Emirates.

They allegedly supplied Russia with military and civilian goods from the European Union and were thus involved in circumventing trade restrictions. The new package of measures also targets ships from the so-called Russian “shadow fleet”.

The new sanctions package therefore once again focuses on the evasion of sanctions. We have summarized the changes for you below.

Extension of sanctions against certain individuals and organizations

The personal sanctions under Decision 2014/145/CFSP will be extended by 84 individuals and entities, including Chinese, Dutch and (high-ranking) North Korean citizens and companies. In addition, the list of organizations and entities supporting Russia’s military-industrial complex in its war of aggression against Ukraine will be expanded by 32 organizations.

Some of the companies concerned are based in third countries such as India, China, Serbia, Iran or the United Arab Emirates. Some of those listed are accused of circumventing European export regulations by supporting, among other things, Russian drone and missile purchases.

Sanctioning the Russian shadow fleet

Furthermore, the list of ships that are, inter alia, subject to docking restrictions in European ports has been extended. These are part of the so-called Russian shadow fleet. This affects ships that support Russia in exporting crude oil in contravention of the embargo regulations and thus circumvent the sanctions. The activities are considered critical by environmental organizations because they increase the risk of an oil spill.

Reaction to Russian anti-suit injunction

The EU is also using the new sanctions package to defend itself against the anti-suit injunctions issued by Russian arbitration courts. On the basis of Article 248 of the Russian Arbitration Code, these injunctions prohibit European companies from initiating or continuing proceedings against Russian companies before non-Russian courts and threaten to impose a fine in the event of non-compliance. This, including the disproportionately high fines, violates international principles and practices. Such decisions (in the broadest sense) are not recognized, implemented or enforced in any member state.

Extensions for investment withdrawals

Finally, longer deadlines are granted for some exemptions. This is intended to enable a smooth withdrawal of investments from the Russian market. In connection with these regulations, the EU nevertheless recommends stopping and not starting any new business activities in Russia.

The resulting CFSP Decisions 2024/3182 and 2024/3187 of this 15th sanctions package amend CFSP Decisions 2014/145/CFSP and 2014/512/CFSP, respectively. These are implemented in Regulation (EU) 833/2014 and Regulation (EU) 269/2014. The sanctions adopted on December 16, 2024 will enter into force upon publication in the Official Journal of the EU. Work on a next, 16th sanctions package has already been announced.

Entrepreneurs and companies should bear in mind that an export control violation can constitute a criminal offense punishable by up to 15 years’ imprisonment. Please contact us if you need advice in the areas of foreign trade or customs law.