Key Measures

Energy

• LNG Restrictions: Ban on reloading services of Russian liquified natural gas (LNG) within EU territories to third countries to cut Russian revenue from LNG exports.
• Investment Prohibitions: Prohibits new investments in and the provision of goods and services for LNG projects under construction like Arctic LNG 2 and Murmansk LNG.
• Import Restrictions: Import bans on Russian LNG through EU terminals not connected to the natural gas system.

Anti-Circumvention

• Corporate Responsibility: EU parent companies must exercise best efforts to ensure that their third country subsidiaries do not engage in activities that undermine EU sectoral sanctions on Russia.
• Expansion of General Anti-Circumvention Provisions: The language of the anti-circumvention provisions in both Regulation 833 and Regulation 269 is expanded to reflect the Court of Justice’s decision in Case C-72/11 Afrasiabi and Others.
• Battlefield Goods: EU operators must implement due diligence to prevent the re-export of battlefield goods to Russia and include provisions in contracts to prevent the transfer of industrial know-how for battlefield goods.

Finance

• Financial Messaging Ban: EU entities are banned from using Russia's System for Transfer of Financial Messages (SPFS) and from transactions with entities using SPFS outside Russia.
• Credit and Crypto Restrictions: Ban on transactions with targeted financial institutions and crypto providers outside the EU that support Russia’s defence sector.

Funding of Political Parties and Organisations

• Funding Restrictions: Prohibits EU political parties, foundations, NGOs, and media from accepting funds from the Russian state or its proxies, while allowing media activities like research and interviews.

Transport

• Vessel Restrictions: Ban on port access and services to vessels aiding Russia’s military efforts, including those transporting military equipment, stolen Ukrainian grain, or involved in deceptive shipping practices.
• Flight and Road Ban: Expanded flight ban to include non-scheduled flights controlled by Russian entities and widened road transport ban to cover EU operators with significant Russian ownership.

Import-Export Controls and Restrictions

• Entity List Expansion: 61 new entities added to the list of those supporting Russia’s military, subject to stricter export restrictions.
• Restricted Items: Expanded list of restricted items contributing to Russia’s defence sector, including certain machine tools and “All Terrain Vehicles.”
• Import-Export Restrictions: Further restrictions on the export of goods enhancing Russian industrial capabilities and import of helium from Russia.
• Partner Countries: Liechtenstein added to the list of countries applying equivalent restrictive measures on Russian imports.

Protection of EU Operators

• Compensation Mechanisms: Measures to allow EU operators to claim compensation for damages from Russian companies due to sanctions and expropriation.

Other Measures

• Intellectual Property: Restrictions on registering certain intellectual property rights in the EU by Russian nationals and companies.
• Cultural Property: Ban on transactions involving Ukrainian cultural goods suspected to be unlawfully removed.

New Listings

The EU has imposed restrictive measures on 69 individuals and 47 entities responsible for actions stated to be undermining Ukraine’s territorial integrity, sovereignty, and independence. These include:

• Individuals: Businesspersons, propagandists, public figures, military personnel, judiciary members, and those involved in deporting Ukrainian children and religious persecution in Crimea.
• Entities: Companies circumventing EU sanctions, transporting weapons and providing dual-use technologies. Notable additions include Sovcomflot, Russia's largest shipping company and Volga Dnepr Group.

New licensing grounds

Regulation 269 now includes two new licensing grounds for the authorisation by the competent authorities of Member States of funds frozen as a result of transfer made through the involvement of a designated intermediary bank or initiated through or from a designated person.

EU restrictive measures now affect over 2200 individuals and entities. Designated individuals face asset freezes and travel bans, while entities face financial restrictions. EU citizens and companies are forbidden from providing funds to these sanctioned individuals and entities.

The relevant legal acts, including the names of the listed individuals and entities, have been published in the Official Journal of the EU and are listed below:

• Council Regulation (EU) 2024/1739 of 24 June 2024 amending Regulation (EU) No 269/2014 here
• Council Regulation (EU) 2024/1745 of 24 June 2024 amending Regulation (EU) No 833/2014 here
• Council Implementing Regulation (EU) 2024/1746 here
• Council Implementing Regulation (EU) 2024/1776 here

The European Council press releases can be accessed here and here

The European Commission’s press release can be found here