As part of the fifth package of economic and individual sanctions against Russia, an EU-wide ban on Russian contractors participating in public contracts and concessions awarded in EU member states has been introduced.

This measure was introduced by Regulation (EU) 2022/576 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilizing the situation in Ukraine (OJ L. 111, 8.4.2022, p. 1), which came into force on 9 April 2022.

The Regulation is directly effective in all Member States.

The prohibition applies not only to the award but also to the continued execution of any public or concession contracts in favour of or by:

a) a Russian national, or a natural or legal person, entity or body established in Russia;

b) a legal person, entity or body whose proprietary rights are directly or indirectly owned in more than 50 % by an entity referred to in point (a) above; or

c) a natural or legal person, entity or body acting on behalf or at the direction of an entity referred to in point (a) or (b) above;

including, where they account for more than 10 % of the contract value, subcontractors, suppliers or entities whose capacities are being relied on within the meaning of the public procurement Directives.

The prohibition applies to public and concession contracts with a value equal to or above the EU thresholds, including those enumerated and subject to exemptions from the procurement or concession obligation under the Concessions Directive, the Classical Directive, the Utilities Directive and the Defence and Security Directive.

With respect to the continued execution of public and concession contracts entered into before 9 April 2022, the prohibition will take effect on 10 October 2022.

The Regulation provides for a list of exemptions in respect of which competent authorities may authorize the award and further execution of contracts.

These exemptions include, among others, contracts for:

• the purchase, import or transport of natural gas and oil, including refined oil products, as well as titanium, aluminium, copper, nickel, palladium and iron ore from or through Russia to the European Union; or
• the purchase, import or transport to the European Union of coal and other solid fossil fuels listed in Annex XXII (e.g. lignite, peat) until 10 August 2022.