European Union sanctions against the Russian Federation: the approval of the so-called "Fourteenth Package"

 

The European Union, after a long and tortured phase of diplomatic negotiations, has squared off in approving the new package of restrictive measures to be applied to the Russian Federation, precisely the fourteenth since the start of the war of aggression against the Ukrainian Republic.

 

The package contains important new energy measures concerning liquefied natural gas (LNG), as well as measures targeting vessels used to transport the said gas. Specifically, with regard to LNG, the package bans all future investments and exports to LNG projects currently underway in Russia and, after a nine-month transition period, will also ban the use of EU ports for the transshipment of Russian LNG. A ban on the import of Russian LNG to specific terminals not connected to the EU's pipeline network is also envisaged. Thus, for the first time, the EU has adopted a measure concerning ships that, through their service, contribute to the financial sustenance of Russian aggression against Ukraine, which are now subject to a ban on access to ports and a ban on the provision of services. In this first round of sanctions, the European Union has listed 27 ships. The list may be updated whenever expansion of those listed becomes necessary in order to counter the ever-changing supply of such vessels. The package also introduces new lists of persons and entities subject to restrictive measures, namely 69 persons and 47 entities, which are subject to asset freezes and, in the case of natural persons, also to travel and movement bans.

 

From the point of view of financial sanctions, within the new package a ban is envisaged on EU banks operating outside the Russian Federation from using the SPFS financial messaging system, i.e., the Russian equivalent of the SWIFT system. The Council is also allowed to draw up a list of third-country banks connected to this system: these banks will be prohibited from conducting transactions with EU operators. Finally, a ban is introduced on transactions with banks and cryptocurrency providers, in Russia and third countries, which help support the production efforts of the Russian military-industrial complex.

 

Another stated goal of the European Union remains to strengthen export restrictions on industrial goods and advanced technology. The package, in this sense, restricts exports of nine other types of dual-use and advanced technology goods (for example: microwave and antenna amplifiers, flight data recorders) and extends export bans to certain types of industrial products, chemicals, plastics, vehicle parts and machinery. The export of manganese ore and the import of helium are also banned. 

 

Finally, the ban on the import of Russian diamonds already provided for in the Twelfth Package is finalized, but it does not apply to diamonds located in the European Union or in third countries (other than Russia) or polished and/or processed in a third country before the ban on Russian diamonds came into force (so-called "grandfathering" clause). S ontemporary import and export of jewelry is allowed (e.g., for the purpose of participation in trade fairs).