Following similar measures imposed by the United States, the European Union imposed a series of new export controls and sanctions targeting Russia.

Regulation (EU) 2022/328 amends Regulation (EU) 833/2014 to prohibit trade in most dual-use goods and technologies, impose new controls on items that may contribute to military reinforcement and technology and to limit exports of items that Russian energy, aviation and space industries. The measure also imposes extensive sanctions limiting Russia’s access to EU capital markets, loans and credit, public funding and banking services.

Restrict trade in dual-use goods

Ban on exporting dual-use goods

The EU measure generally prohibits the sale, supply, transfer or export, directly or indirectly, of “dual-use goods and technologies” to Russia. The list of “dual-use items and technologies” subject to these restrictions can be found in Annex I of Regulation (EU) 2021/821 and includes items classified in the following categories of multilateral controls:

• Nuclear materials, facilities and equipment
• Special materials and related equipment
• Materials processing
• Electronic
• Computers
• Telecommunications and “information security”
• Sensors and lasers
• Navigation and avionics
• Marine
• Aeronautics and propulsion

This is a general licensing requirement, essentially requiring EU companies to obtain permission from member state authorities to export almost any item on the EU’s Dual-Use Control List. the EU to Russia. Exempt from the ban are exports of dual-use goods and technology for certain end uses, including humanitarian purposes, certain information security items for non-governmental Russian individuals and entities, medical purposes or pharmaceutical products, consumer communication devices and software, and software updates. . Competent authorities may also allow trade for certain purposes, such as international cooperation in space programs, provision of internet services and diplomatic representations.

Trade restrictions apply whether or not the underlying goods and technology originate in the European Union, and come with restrictions on technical support, brokerage services or other related services, including financial services.

Restrict contributions to the military or technological reinforcement of Russia

In addition to the general ban on exports of dual-use items, the rules prohibit the sale, supply, transfer or export, directly or indirectly, of listed goods and technology that could contribute to the military or technological enhancement of Russia, or the development of Russia’s defense and security. sector.

The list of applicable goods and technologies is set out in Annex VII. The list closely mirrors certain United States 900-series Export Control Classification Numbers (ECCNs) in categories 3 through 9 of the United States Trade Control List, including those related to semiconductors and to the production of semiconductors.

Petroleum refining, aviation and space industries

The EU measure also bans exports to Russia of specific goods and technologies suitable for use in the oil refining, aviation and space industries. The goods and technology subject to these restrictions are listed in Annexes X and XI, respectively, and include restrictions on the provision of related services.

New financial sanctions

The measure contains a number of expanded and new financial sanctions targeting the Russian market. These include:

• Transferable securities and money market instruments: The measure extends pre-existing restrictions to prohibit transactions in transferable securities or money market instruments issued after April 12, 2022 involving lists of specified Russian entities.
• Loans: The measure prohibits the granting of any new loan or credit to specified parties (beyond restrictions on debt transactions with maturities of 30 days or more) and expands the list of sanctioned parties.
• Public funding: the measure prohibits the provision of public funding or financial assistance for certain trade or investment with Russia, with some exceptions for commitments established before February 26, 2022, projects involving small and medium EU establishments and projects for agricultural, medical or humanitarian purposes.
• Deposits: the measure prohibits accepting deposits from Russian nationals or natural persons residing in Russia, or from legal persons established in Russia, if the total value of the deposits exceeds EUR 100,000 per person and per credit institution. The measure does not apply to nationals of Member States or natural persons residing in Member States and does not apply to deposits necessary for non-prohibited cross-border trade between Russia and the EU.
• Euro-denominated securities: The measure prohibits the sale of euro-denominated securities issued after April 12, 2022 to any Russian national, any natural person in Russia and any Russian legal person. The prohibition includes the sale of units of collective investment schemes offering exposure to these securities. The provision does not apply to nationals or residents of Member States.
• Listing Restrictions: The measure prohibits the listing of securities of Russian legal entities or bodies with more than 50% public ownership on trading venues registered or recognized in the EU, from 12 April 2022, as well as the provision of services on these platforms.
• Investment services: the measure prohibits the purchase, sale, provision of investment services or assistance in the issuance of transferable securities and money market instruments issued after April 12, 2022 from specified entities , or any other transaction concerning these transferable securities and money market instruments.

Businesses operating under EU jurisdiction should carefully consider these new provisions and the associated exceptions.

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