Sanctions tracker: EU announces ninth Russia sanctions package

On 7 December, the European Commission announced proposals for a ninth sanctions package against Russia. The measures are not yet in force and full details are not yet available, but we have summarised below the areas intended to be covered by the new package, along with a round-up of other UK and EU Russia sanctions developments.

EU

Ninth sanctions package

The Commission's announcement states that the new sanctions package will include the following six elements:

1. Additional designations under the existing asset freeze, comprising almost 200 additional individuals and entities. These include Russian armed forces and individual offices, defence companies and public officials.
2. Sanctions on three additional Russian banks, including a full transaction ban on the Russian Regional Development Bank.
3. New export controls and restrictions relating to dual-use goods (including key chemicals, nerve agents, electronics and IT components).
4. A ban on the direct export of drone engines to Russia and the export to any third countries, such as Iran, which could supply drones to Russia.
5. Broadcasting restrictions on four additional Russian channels.
6. Further measures targeting the energy and mining sector, including a ban on new mining investments in Russia.

We will issue a further update once the legislation effecting these measures has been published.

Oil price cap

The EU oil price cap came into force on 5 December (see our blogpost on the EU's eighth package, and the relevant EU legislation for further detail). The Commission has issued FAQs on the operation of the price cap.

We will shortly be holding a webinar on the implementation of the oil price cap in the US, UK and EU. Any readers who would like to attend should contact one of the authors of this post or their usual HSF contact for details of how to register.

Enforcement of sanctions violations

Following its announcement of a proposal to add the violation of EU sanctions to the list of "EU crimes" (discussed in our previous post), on 2 December, the Commission has published a proposal for a Directive to harmonise criminal offences and penalties for the violation of EU sanctions. This follows the adoption of a Council Decision on 28 November adding the violation of sanctions to the list of "EU crimes", making it easier for Member State authorities to confiscate frozen assets.

The proposed Directive will establish the same level of penalty for breach of sanctions in all Member States; depending on the offence, an individual could be liable for up to five years' imprisonment and companies could be subject to penalties of no less than 5% of their total worldwide turnover in the preceding year. The Commission has also published Q&A on the proposal.

The proposal will now be discussed by the European Parliament and the Council.

Management of frozen assets

On 30 November, the Commission announced that it had presented to Member States different options to hold Russia accountable for its actions in Ukraine, including the creation of a new structure to manage frozen Russian public assets, invest them, and use the proceeds for Ukraine.

UK

Additional designations

As part of a round of new sanctions to mark International Anti-Corruption Day and Human Rights Day, the UK has added one Russian military official to the Russia asset freeze list (see notice). A number of the individuals added to the separate asset freezing list under the Global Human Rights regime are also connected to Russia and Crimea.

This follows the 30 November announcement of 22 further additions to the asset freeze list, targeting officials involved in the conscription of citizens to fight in Ukraine.

Oil price cap

As with the EU, the UK's oil price cap came into force on 5 December. HM Treasury has published guidance on the operation of the price cap, along with a number of other documents including relevant General Licences and reporting forms (all of which can be found here).  As above, please contact us for further details of the forthcoming oil price cap webinar.