On 19 December, the Council of the European Union adopted its twelfth package of economic and individual restrictive measures against Russia in response to the ongoing war of aggression against Ukraine.
“With this 12th package, we are putting forward a robust set of new listings and economic measures which will further weaken Russia’s war machine,” Josep Borrell, High Representative for Foreign Affairs and Security Policy stated.
The package includes several key measures:
- Diamond Trade Restrictions: The EU has imposed a prohibition on the import, purchase, or transfer of diamonds from Russia, effective from 1 January 2024 for direct bans and phased in for indirect bans by 1 September 2024. This ban is part of a coordinated G7 effort to cut off a significant revenue source for Russia.
- “No Russia” Clause: EU exporters are now required to contractually prohibit re-exportation to Russia of sensitive goods and technology, particularly those used in Russian military systems or critical to their development.
- Import-Export Controls and Restrictions: The Council has added 29 new entities to the list of those supporting Russia’s military and industrial complex, subjecting them to tighter export restrictions. The list includes additional restricted items like chemicals, lithium batteries, and certain machinery parts.
- New Import Bans: The EU introduced restrictions on imports of goods generating significant revenue for Russia, including pig iron, copper, and aluminium products, and a new import ban on liquefied propane, with a transitional period.
- Enforcement and Anti-Circumvention Measures: The transit ban for dual-use goods will be extended to all battlefield goods. Russian nationals are banned from holding positions in entities providing crypto-asset services. The provision of enterprise management and industrial design software is now prohibited.
- Oil Price Cap Enforcement: The Council is tightening compliance rules for the oil price cap and enhancing mechanisms to identify deceptive practices in transporting Russian oil and petroleum products.
- Iron and Steel: Switzerland has been added to a list of partner countries applying restrictive measures on iron and steel imports from Russia.
- Individual Listings: The Council has listed additional individuals and entities in addition to economic sanctions.
