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EU’s 14th Package of Sanctions on Russia
On 24 June 2024, the EU adopted its 14th package of sanctions against Russia. The latest measures include:
- The designation of 116 additional individuals and entities across a number of industries for their responsibility in undermining Ukraine’s territorial integrity, sovereignty, and independence.
- A limited ban on contracts with Russian state energy companies and additional support for countries with energy needs to curb reliance on Russia.
- Anti-circumvention measures, including requirements for EU parent companies to use “best efforts” to ensure that non-EU subsidiaries do not undermine EU sanctions.
- A ban on the use of “System for Transfer of Financial Messages” (SPFS) (a Russian equivalent of SWIFT) by EU entities operating outside of Russia and a new power for the EU to designate third-country users of SPFS outside of Russia, which will then be subject to a transaction ban.
- Comprehensive bans on port access by vessels contributing to Russian warfare, non-scheduled flights by controlled by Russian entities, and road transport of goods with 25% or more Russian ownership.
- An amendment to the existing import-related restrictions concerning Russian diamonds.
- Further import and export controls impacting Russia’s military-industrial complex and cultural property goods from Ukraine.
- A requirement for the rejection of intellectual property rights applied for by Russian residents, nationals or entities.
- A prohibition on accepting funding from the Russian state and its proxies by EU political parties, foundations, NGOs and media service providers.
- An exemption to the ban on providing software services to Russia in cases where entities are controlled by an EU parent company and other select regions or services are provided by employees who were hired prior to February 2022.
- A requirement for enhanced reporting, confidentiality requirements, and the promotion of voluntary self-disclosures.
- Measures to allow EU operators to claim compensation in EU commercial and civil courts for damages caused by Russian companies further to sanctions.
These measures are summarized in further detail below.