The European Union has adopted a further package of sanctions against Russia. The so-called 14th sanctions package contains new measures, including in the area of liquefied natural gas (LNG) and sanctions against ships that support Russia's war against Ukraine.
In addition, the EU has taken new measures against the circumvention of sanctions.
New measures against the circumvention of sanctions
For example, parent companies in the EU must ensure that their subsidiaries in third countries are not involved in transactions that violate the sanctions. Where EU companies with subsidiaries in third countries are obliged under Regulation (EU) No 833/2014 to ensure that certain measures are taken to prevent the export or re-export of goods or technology to Russia, these obligations should be fulfilled to the extent permitted by the legislation of the third country in which the subsidiary in question is established
Liability protection for EU companies that did not know and had no reasonable suspicion that their actions violated EU sanctions does not apply if an EU company did not adequately fulfil its due diligence obligations (see Decision (CFSP) 2024/1744).
As part of the 14th sanctions package, the EU also clarifies that a person is not only liable to prosecution if they intentionally circumvent EU sanctions, but also if they participate in a transaction that is intended to circumvent sanctions. This also applies if the person suspects or tolerates that sanctions are being circumvented.
Preventing the re-export of certain goods
The EU also wants to prevent the re-export of certain goods found in Ukraine. These are the common priority items listed in Annex XL of Regulation (EU) No 833/2014, which were found on the battlefield in Ukraine or which are essential for the development, production or use of Russian military systems.
EU companies that sell, supply, transfer or export common priority goods to third countries are obliged to set up due diligence mechanisms to identify, assess and mitigate the risks of re-export to Russia. This refers to third countries that are not listed in Annex VIII of Regulation (EU) No. 833/2014.
In addition, EU companies that pass on industrial expertise for the production of these goods to business partners in third countries must now contractually ensure that this expertise is not used for goods destined for Russia.
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