EU adopts 14th sanctions package against Russia, targeting Russia’s LNG and cracking down on circumvention

The Council of the European Union has adopted its 14th package of economic and individual restrictive measures against Russia, according to a press release dated 24 June 2024. This comprehensive package aims to further weaken Putin’s regime amid the ongoing Russo-Ukrainian war.

The new sanctions package includes sectoral measures and adds 116 individuals and entities to the restrictive measures list, bringing the total to 2,000 individuals and entities subject to asset freezes and travel bans for undermining or threatening Ukraine’s territorial integrity and sovereignty. 

Key points of the package include:

1. Energy sector measures:

• Prohibition on reloading Russian LNG in EU territory for transshipment to third countries
• Ban on new investments and services for LNG projects under construction
• Import restrictions on Russian LNG through EU terminals not connected to the natural gas system

2. Anti-circumvention measures:

• Requirements for EU parent companies to ensure third-country subsidiaries comply with sanctions
• Due diligence mechanisms for EU operators selling battlefield goods to third countries
• Contractual provisions for EU operators transferring industrial know-how to third-country counterparts

3. Financial sector restrictions:

• Ban on the use of Russia’s SPFS financial messaging service
• Restrictions on transactions with targeted credit and financial institutions outside the EU

4. Measures against political interference:

• Prohibition on EU political parties, NGOs, and media service providers accepting funding from the Russian state and its proxies

5. Transport sector measures:

• Port access ban and service provision ban for specific vessels contributing to Russia’s warfare
• Expanded EU flight ban to cover non-scheduled flights
• Broader prohibition on road transport within the EU for Russian-owned operators

6. Import-export controls:

• Addition of 61 entities to the list of those supporting Russia’s military-industrial complex
• Expanded list of restricted items contributing to Russia’s defense and security sector
• Further restrictions on exports of goods enhancing Russian industrial capabilities

The package also includes measures to protect EU operators, allowing them to claim compensation for damages caused by Russian companies due to sanctions implementation.

According to the EU Council’s press release, Josep Borrell, High Representative for Foreign Affairs and Security Policy, stated:

“Our sanctions have already significantly weakened the Russian economy and prevented Putin from accomplishing his plans to destroy Ukraine, although he still continues the illegal aggression targeting civilians and civilian infrastructure. The 14th package of sanctions demonstrates our unity in supporting Ukraine and seeking to limit Russia’s criminal activities against Ukrainians, including efforts to circumvent EU measures.”

Reuters: Germany holds up passage of new EU sanctions package on Russia

Related:

• Reuters: Germany holds up passage of new EU sanctions package on Russia
• UK announces 50 new sanctions to further “degrade Putin’s war machine”
• Denmark weighs blocking Russian oil tankers from Baltic passage
• EU to sanction four Russian media outlets to combat Russian propaganda