Ukraine - EU and UK Sanctions – Update & Fifth and Sixth Packages

The latest update on the Ukrainian Port situation from a Ukraine Correspondent, Dias Marine Consulting PC is that all Ukrainian ports remain closed for inward/outward passages.

• Sanctions designations of officers and individuals involved in war crimes in Bucha and the siege in Mariupol.
• The removal of Sberbank and two other Russian banks from Swift.
• Banning three big Russian state owned broadcasters from distributing content in the EU.
   

• a prohibition to purchase, import or transfer coal and other solid fossil fuels into the EU if they originate in Russia or are exported from Russia. An exception is available until 10 August 2022.
• a prohibition on vessels registered under the flag of Russia and Russian operated vessels from accessing EU ports, although derogations may be granted, e.g. for humanitarian purposes for agricultural and food products, humanitarian aid, and energy.
• a ban on any Russian and Belarusian road transport undertaking preventing them from transporting goods by road within the EU, including in transit. Derogations are nonetheless granted for a number of products, such as pharmaceutical, medical, agricultural and food products, including wheat, and for road transport for humanitarian purposes.
• further export bans, targeting jet fuel, certain fuel additives, and other goods such as quantum computers and advanced semiconductors, high-end electronics, software, sensitive machinery and transportation equipment. These prohibit the sale, supply, transfer or export as well as related technical and financial assistance to any person in Russia or for the use in Russia of jet fuel and certain fuel additives (as listed in Annex XX); and goods and technology which could contribute in particular to the enhancement of Russian industrial capacities (as listed in Annex XXIII).
• new import bans on products such as: wood, cement, fertilisers, seafood and liquor (as listed in Annex XXI). These prohibit the purchase, import, or transfer into the EU, as well as financial assistance, if originating in Russia or exported from Russia, of goods which generate significant revenues for Russia.
• a full transaction ban is imposed on four key Russian banks (VTB, Novikombank, Sovcombank, and Otkritie Bank) representing 23% of market share in the Russian banking sector. After being de-SWIFTed these banks will now be subject to an asset freeze, thereby being completely cut off from EU markets.
• a series of targeted economic measures intended to strengthen existing measures and close loopholes, such as: a general EU ban on participation of Russian companies in public procurement in member states, the exclusion of all financial support to Russian public bodies. an extended prohibition on deposits to crypto-wallets, and on the sale of banknotes and transferrable securities denominated in any official currencies of the EU member states to Russia and Belarus, or to any natural or legal person, entity or body in Russia and Belarus.
• In addition, the EU Council has decided to sanction companies whose products or technology have played a role in the invasion, key oligarchs and businesspeople, high-ranking Kremlin officials, proponents of disinformation and information manipulation, systematically spreading the Kremlin’s narrative on Russia's war aggression in Ukraine, as well as family members of already sanctioned individuals, in order to make sure that EU sanctions are not circumvented.
   

• oil refining goods, software and technology, quantum computing and advanced materials goods, software and technology – the amended measures prohibit the export, supply and delivery, making available and transfer of such items to, or for use in, Russia. The restrictions apply to provision of related technical assistance, financial services, funds and brokering services.
• luxury goods - The UK has now prohibited the export, supply and delivery, making available and transfer of luxury products listed in Schedule 3A to, or for use in, Russia, or to a person connected with Russia. This also includes the supply or delivery of luxury goods from a third country to a place in Russia, but does not include the typical controls on related technical assistance, financial services, funds and brokering services.
• import of iron and steel goods – new restrictions prohibit the import, acquisition, supply and delivery of iron and steel products (as listed in Schedule 3B) originating in or consigned from Russia.