UK: EU implements additional sanctions against Russia

With the continuing situation in Ukraine, the EU has issued a series of announcements over the last week, culminating in the publication of amendments to EU Regulation 833/2014 ("Regulation"), which take effect today.

On 8 September 2014, the EU indicated it would target key sectors of the Russian economy, with a subsequent press release on 11 September 2014 by the President of the European Council, Herman van Rompuy, stating that the Permanent Representative Committee will conduct a comprehensive review of the implementation of the peace plan by the end of September and that the European Council has "always stressed the reversibility and scalability of [its] restrictive measures."

As anticipated, the EU has extended sanctions targeting Russia's access to EU capital markets, certain oil exploration and production activities, the export of dual-use goods, and Russia's defence sector. Three additional lists of entities targeted under the sectoral sanctions have also been added. Key changes are highlighted below.

Restrictions on Russia's access to capital markets have been strengthened by the introduction of a new article that prohibits the purchase, sale, provision of investment services or assistance in the issuance of, or otherwise dealing with transferable securities or money-market instruments with a maturity exceeding 30 days issued after 12 September 2014 by:

(a) Russian defence related companies listed in the new Annex V (OPK Oboronprom, United Aircraft Corporation, and Uralvagonzavod);

(b) Russian companies publically controlled or with over 50% public ownership, with estimated total assets of over 1 trillion Roubles and deriving at least 50% of their revenues from the sale and transportation of crude oil or petroleum products, as listed in the new Annex VI (Rosneft, Transeft and Gazprom Neft);

(c) any entity established outside the EU which is more than 50% owned directly or indirectly by those referred to in (a) or (b); or

(d) anyone acting on behalf or at the direction of any of these entities.

The maturity period for transferable securities and money-market instruments under the earlier provisions targeting Russian state-owned banks (such as Sberbank and Gazprombank) has also been reduced to 30 days (from the previous 90). Additionally, a further new provision prohibits directly or indirectly making or being a part of any arrangement to make new loans or credit with a maturity exceeding 30 days to any of those falling within the articles mentioned, although this is subject to limited exceptions.

In relation to the oil sector, the primary change is the introduction of a new prohibition on the provision by EU nationals and companies of "associated services necessary for deep water oil exploration and production, Artic oil exploration and production, or shale oil projects in Russia". These associated services are defined in a new article in the Regulation as drilling, well testing, logging and completion services, and the supply of specialised floating vessels. The prohibition does not affect contracts or framework agreements entered into before 12 September 2014 or ancillary contracts necessary for their execution, or services necessary for urgent prevention or mitigation of an event likely to have significant health, safety or environment consequences.

On the defence industry front, the Regulation has been amended to include a new article that prohibits the sale, supply, transfer or export of dual-use goods and technology to those entities listed in the new Annex IV (nine entities are listed, including JSC Kalashnikov). In relation to these dual-use goods, the Regulation now also includes a prohibition on providing technical assistance, brokering services and other services, or financing or financial assistance directly or indirectly to those entities listed in Annex IV. However, there is an exception for contracts or agreements entered before 12 September 2014. There are also specific carve-outs in relation to the aeronautics and space industry, as well as for maintenance and safety of existing civil nuclear capabilities within the EU.

Notably, the prohibition under Article 4(1)(b) of the Regulation on the provision of financing or financial assistance in relation to the sale, supply, transfer or export of goods and technology listed on the Common Military List, including grants, loans and export credit insurance or guarantees, has been expanded to include a specific prohibition on providing insurance or reinsurance in relation to these activities. This expansion comes subsequent to the issuing of specific guidance from the Export Control Organisation, which in an FAQ document circulated on 14 August 2014 confirmed that for the purposes of the Regulation, financial assistance did not include insurance or reinsurance for the transport of prohibited and restricted goods.

Importantly, financial services other than those specified in the expanded Article 5 of the Regulation, such as deposit and insurance services from those institutions subject to the sectoral sanctions, remain unaffected, as do derivatives used for hedging purposes in the energy market.

In addition to the amendments to the Regulation, the EU also expanded the list of designated persons and entities under EU Regulation 269/2014, which targets those responsible for actions which undermine Ukraine's territorial integrity. An additional 24 individuals were added to the list, bringing the total number of individuals subject to asset freezes to 119 individuals and 23 entities.

Sanctions in place against Russia remain subject to change, depending on the evolving situation on the ground in Ukraine. No-go areas for the EU also remain, including a hands-off approach to Russia's gas sector. What happens next will depend on the results of the Permanent Representative Committee's review of the implementation of the peace plan in Ukraine.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Brett Hartley
Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions