11th package of European sanctions against Russia

On June 23, the 11th package of restrictive measures of the European Union against Russia was published, which includes EU Reg. 2023/1214 which amends Reg. (EU) n. 833/2014 and EU Reg. 2023/1215 and EU Reg. 2023/1216 which amend and implement Reg. (EU) n. 269/2014

As already announced, the new sanctions package is aimed at preventing and targeting trafficking evasion, through the use of a new tool that will be activated only in the event of failure to strengthen cooperation with the third countries involved. This instrument may envisage limiting the sale, supply, transfer or export of goods or technology, which are prohibited for export in Russia, to a third country deemed to be at risk of trade diversion, subject to a resolution by the Council.

The main innovations concern:

Subjective restrictions:

added 87 new entities supporting the Russian Armed Forces through the procurement of technological and dual-use products. Some of these entities are registered in Iran, China, Uzbekistan, United Arab Emirates, Syria and Armenia. Furthermore, more than 100 persons and entities subject to asset freezing have been added and the list of broadcasting operators or other means of communication has been expanded to 5 other subjects, because they are under the direct or indirect control of the Russian government.

Intellectual property:

the EU regulation introduced a ban on licensing or otherwise transferring, directly or indirectly, intellectual property rights or trade secrets or giving access to information relating to products whose export to Russia is prohibited.

Merchandise restrictions:

new export restrictions on products that could contribute to the technological upgrading of Russia's defense and security sector, including electronic components, semiconductor materials, equipment for manufacturing and testing integrated electronic circuits and printed circuit boards, precursors of energy and chemical weapons materials, optical components, navigation instruments, metals used in the defense sector and marine equipment. Prohibited goods that contribute to the strengthening of Russian industrial capacities, for example some types of tyres, products of the textile sector, products of the chemical industries, plastic materials, machinery and related components. Also expand restrictions on the transfer, supply, export of firearms and their parts. Introduced new restrictions on the import of steel products and on the export of cars with an engine capacity greater than or equal to 1900 cm3 and electric and hybrid cars. With regard to luxury goods, a ban has been introduced on the provision of technical assistance, brokerage or other services related to products subject to the restrictions on so-called luxury goods to any natural or legal person, entity or body in Russia or for use in Russia. As with the previous sanctioning packages, for certain new products prohibited for export, the non-application of the restrictions until 25 September 2023 is envisaged, if they are the subject of a contract concluded before 24 June 2023 or of ancillary contracts necessary for the execution of such contracts.

Transit restrictions:

the ban on transit through Russian territory has been extended to sensitive goods and technologies, which can contribute to Russia's military and technological strengthening even if destined for a third country.

Transportation restrictions:

ban on transporting goods within the EU by road to trailers and semi-trailers registered in Russia, even when transported by trucks registered outside Russia. Restrictions on maritime transport have also been introduced for ships to access EU ports if the competent authorities have reasonable grounds to suspect that they are in breach of EU bans on the transfer of oil or petroleum products.

Energy restrictions:

Permanent stop to the temporary derogation granted to Germany and Poland for the supply of crude oil from Russia through the northern section of the Druzhba pipeline. The possibility of granting derogations from the EU restrictions is recognized for the purpose of allowing the operation and maintenance of the pipelines of the Caspian Pipeline Consortium (CPC) and the transfer of goods referred to in code 2709 00 originating in Kazakhstan and for which only loading, departure or transit takes place in Russia.

The Customs Consultancy team remains at your complete disposal for any further information.