On 14 August 2025, the Federal Ministry for Economic Affairs and Energy (BMWE) published a draft bill that adjusts criminal offences and sanctions for breaches of restrictive measures imposed by the European Union. The draft significantly tightens and Europeanises sanctions law in Germany.
The focus is on the amendment of the foreign trade law criminal and administrative offence provisions in Sections 18 and 19 of the Foreign Trade and Payments Act (AWG) as well as Section 82 of the Foreign Trade and Payments Regulation (AWV).
Key Points of the AWG Amendment
Section 18 AWG revises the criminal offences and introduces greater differentiation. In the future, violations of export, trade, transaction, as well as service and disposal prohibitions will be comprehensively sanctioned, depending on the specific circumstances. The movement or use of frozen assets is also explicitly covered.
Furthermore, the draft criminalises the concealment of assets by third parties to circumvent sanctions, as well as intentional and negligent breaches—particularly in the area of armaments and dual-use goods. At the same time, it clarifies that actions carried out as part of humanitarian aid are exempt from criminal liability.
Reporting obligations are expanded through a general “duty for all” (Section 18 (5a) AWG), from which legal advisory professions are exempt. Especially severe cases of sanctions circumvention are separately punishable under Section 18 (6a) AWG.
Section 19 AWG sets the administrative fine framework for companies: deliberate breaches or failures in supervisory duties may in future be fined up to €40 million. Companies are therefore well advised to review and adapt their internal compliance and control systems.
The Foreign Trade and Payments Regulation (AWV) is also being amended, particularly Section 82, which governs administrative offences in connection with EU sanctions regulations. This especially affects provisions related to the Russia sanctions, such as the so-called “No-Russia Clause.”
Links:
Referentenentwurf des Bundesministeriums für Wirtschaft und Energie
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