| Image credits: A Russian oil tanker, Volgoneft 212, recently sank off the coast of Russian-occupied Crimea, highlighting ongoing maritime risks amid sanctions and trade restrictions, by Alexxx1979.

In response to Russia’s continued war against Ukraine, the European Union has adopted a 15th package of economic and individual restrictive measures. This package focuses on limiting Russia’s access to resources by enhancing trade restrictions, targeting sanctions evasion, and protecting European businesses.

TARGETING TRADE CIRCUMVENTION AND SANCTIONS EVASION

A key element of the 15th sanctions package is combating the circumvention of EU trade restrictions. The measures target Russia’s "shadow fleet," which transports crude oil and oil products in defiance of the established price cap mechanism. As a result, 52 additional vessels have been added to the list of ships banned from EU ports and restricted from maritime services, bringing the total number of designated vessels to 79.

These vessels, originating from third countries, have been involved in the transport of sanctioned goods, stolen Ukrainian grain, and military equipment. The aim is to curtail revenues that fuel Russia’s military aggression and disrupt its logistical networks.

EXPANDED EXPORT RESTRICTIONS

The Council has added 32 new entities to the list of those supporting Russia’s military and industrial complex. These entities are subject to stricter export controls on dual-use goods and technologies that could bolster Russia’s defense sector.

Notably, these entities are not limited to Russia. Companies from China, India, Iran, Serbia, and the United Arab Emirates have been implicated in the procurement of sensitive items such as drone components and missile technology. The enhanced export restrictions aim to close loopholes exploited by third-country actors.

MEASURES TO PROTECT EUROPEAN COMPANIES

To safeguard European firms from legal risks, the EU has introduced measures prohibiting the recognition and enforcement of rulings by Russian courts based on Article 248 of the Russian Arbitration Procedure Code. These anti-suit injunctions have penalized European businesses and hindered their ability to pursue legal proceedings outside of Russia. This measure shields EU operators from disproportionate financial penalties.

Additionally, the Council has allowed central securities depositories (CSDs) in the EU to unfreeze cash balances to meet their legal obligations. This derogation addresses retaliatory measures by Russia, which have led to asset seizures, and helps mitigate financial risks for European entities.

SUPPORT FOR EU BUSINESSES EXITING RUSSIA

Recognizing the challenges of maintaining business operations in Russia, the Council has extended deadlines for derogations that facilitate divestments. This measure enables European businesses to exit the Russian market in an orderly manner, reducing exposure to legal and financial risks. These extensions are granted on a case-by-case basis to ensure a swift and structured withdrawal.

STRATEGIC IMPACT ON TRADE 

The latest measures emphasize the EU’s commitment to tightening economic pressures on Russia while protecting the integrity of the single market. By targeting entities and trade networks that support Russia’s war economy, the EU seeks to weaken Russia’s capacity for aggression. 

BACKGROUND AND ONGOING COMMITMENT

The European Council’s conclusions of October 17, 2024, reaffirmed the EU’s condemnation of Russia’s war of aggression and its commitment to Ukraine’s sovereignty. This latest sanctions package reflects the EU’s strategic approach to limiting Russia’s ability to wage war while supporting Ukraine politically, economically, and militarily. The EU remains prepared to adopt further measures as necessary.

The legal acts associated with this package have been published in the Official Journal of the European Union.

SOURCE/ RECOMMENDED READ: 

• Russia’s war of aggression against Ukraine: EU adopts 15th package of restrictive measures - Consilium