Chief among the changes included in the EU’s 10th Package of sanctions is a prohibition on Russian nationals and entities booking gas storage capacity in the Union. In addition, exports of EU dual-use goods and technology may not transit through Russia, and existing import and export restrictions have been extended and amended; Russian nationals are banned from holding any position in the governing bodies of EU critical infrastructures and entities. Apart from restrictions, the new sanctions package also provides for certain exemptions and possible derogations. Finally, the new measures include several new designations of Russian persons and entities, including three Russian banks, including Rosbank.

We set out the main takeaways below. Please keep in mind that EU sanctions are binding on (i) nationals of any EU member state wherever located, (ii) legal entities incorporated within an EU member state, (iii) all persons located within the EU, (iv) all persons in respect of business done in whole or in part within the EU, and (v) all persons on board aircraft and vessels holding the jurisdiction of an EU member state (EU Persons).

Gas storage capacity ban

First, the new measures prohibit Russian nationals and entities from booking gas storage capacity in the Union. A transitional period until March 27, 2023 is envisaged as sufficient to execute the operations necessary for termination of existing contracts or of ancillary contracts necessary for the execution of such contracts. Member states may also authorize the provision of storage capacity for critical energy supply. Finally, the ban does not apply to liquefied natural gas.

New export and transit restrictions

Second, the 10th Package has expanded the list of goods and technology that may not be exported or provided to Russian persons or for use in Russia. This applies, in particular, to the lists of products and technology which (i) contribute to Russia’s military and technological enhancement, or the development of the defense and security sectors, and (ii) could contribute to the enhancement of Russian industrial capacities. At the same time, an exception was added for goods that are strictly necessary to produce titanium goods required in the aeronautics industry, for which no alternative supply is available.

The 10th Package also prohibits—in the aim of halting circumvention of existing restrictions—the transit through Russia of EU exported dual-use goods and technology as well as arms. The export of these goods to Russia was already prohibited by way of a previous sanctions package.

Additional import ban

Third, the 10th Package extends existing restrictions on imports of goods that generate significant revenues for Russia. The new import ban covers goods, such as asphalt, petroleum coke and petroleum jelly. At the same time, a quota is envisaged for carbon and synthetic rubber until June 30, 2024.

A ban on Russian nationals holding any position in the governing bodies of EU critical infrastructures and entities

Fourth, by way of the new measures, the 10th Package bans Russian nationals or other natural persons residing in Russia from holding posts in the governing bodies of European critical infrastructures and critical entities. This prohibition does not apply to EU, EEA or Swiss nationals.

New reporting requirements

Fifth, the new measures introduce a requirement for EU individuals and legal entities to report information on the assets and reserves of the Central Bank of Russia and the Russian National Wealth Fund. The 10th Package also introduces a requirement for aircraft operators to notify nonscheduled flights to their national competent authorities.

Exception to the ban on technical assistance

Sixth, concerning the existing prohibitions on providing technical assistance under Regulation 833/2014, the new measures introduce an exception for the provision of maritime pilot services that are strictly necessary to ensure maritime safety.

Designations

Finally, as part of the 10th Package, the EU has designated an additional 87 individuals and 34 entities to the sanctions list. The new listing includes among others: Alfa-Bank, Rosbank, Tinkoff Bank, the National Wealth Fund of the Russian Federation and the Russian National Reinsurance Company. A significant number of designations covers the Russian military and defense sectors, including companies manufacturing missiles, drones, aircrafts, military vehicles, warships, or control systems, and those companies supplying the Russian Armed Forces.

Dentons will continue to monitor and report as events unfold. Please feel free to reach out to your Dentons relationship partner if you have any questions or require assistance in sanctions compliance.