EU adds new anti-circumvention tools to 14th package of sanctions against Russia

The 14th package of EU sanctions against Russia includes additional tools to combat the circumvention of existing restrictive measures.

The decision provides that EU parent companies must make every effort to ensure that their subsidiaries in third countries do not engage in any activities that could lead to outcomes targeted by sanctions. 

Additionally, to counter the re-export of military goods found in Ukraine or critical to the development of Russian military systems, EU operators selling such goods to third countries must implement special mechanisms to detect and assess the risks of re-export to Russia and mitigate them.

It has been stipulated that EU operators transferring industrial know-how for the production of military goods to commercial partners in third countries must now include provisions in contracts guaranteeing that such know-how will not be used for goods intended for Russia. 

The Council of the EU has added 61 new companies to the list of those directly supporting Russia's defence industry. They will be subject to stricter export restrictions on dual-use goods and technologies, as well as goods and technologies that could contribute to the technological enhancement of the Russian defence and security sector.

Some of these enterprises are located in third countries (China, Kazakhstan, Kyrgyzstan, Türkiye, and the United Arab Emirates) and have been involved in circumventing trade restrictions and procuring sensitive goods used, for example, in drone production or providing material support to Russian military operations.

Furthermore, the decision expands the list of prohibited goods that could contribute to the technological enhancement of the Russian defence and security sector, including specific machine tools and certain "all terrain vehicles". 

The EU has also introduced additional export restrictions on goods that, notably, enhance Russia's industrial potential (such as chemical substances including manganese ores and rare earth compounds, plastics, earth-moving equipment, monitors, and electrical equipment), as well as additional restrictions on helium imports from Russia.

Additionally, the new EU sanctions include measures against Russian liquefied natural gas. Furthermore, the new package is aimed at tankers that are part of Russia's "shadow fleet" in the oil sector.