Arthur Kryzhny18:47, 12/18/23

More sanctions have been introduced against individuals, a ban on Russian diamonds, and it is impossible to bypass price restrictions on Russian oil.

The European Union has adopted the 12th packageof sanctions against Russia, which is aimed at limiting its military potential and economic capabilities, the EU Council reports.< /span>

“In this 12th package, we are proposing a powerful set of new lists and economic measures that will further weaken the Russian war machine. Our message is clear: we remain steadfast in our commitment to Ukraine and will continue to support its struggle for freedom and sovereignty,” said Head of European Diplomacy Josep Borrell.< /span>

Ban on Russian diamonds

The EU is introducing a ban on the direct or indirect import, purchase or transfer of diamonds from Russia. This ban applies to diamonds originating in Russia, diamonds exported from Russia, diamonds transiting Russia, and Russian diamonds processed in third countries.

The outright ban applies to non-technical natural and synthetic diamonds, as well as diamond jewelry, from January 1, 2024. The introduction of indirect bans on the import of diamonds originating from Russia will be phased in from March 1, 2024 to September 1, 2024.

Sanctions on the defense sector

The EU has banned the re-export to Russia of sensitive goods and technologies used in Russian military systems. This applies, in particular, to aviation goods and weapons.

In addition, the EU added 29 new entities to the list of sanctions that directly support the Russian military-industrial complex. 

“Some of these 29 organizations belong to third countries involved in circumventing trade restrictions, or are Russian organizations involved in the development, production and supply of electronic components for the Russian military-industrial complex,” the EU Council said.

The EU has also expanded the list of prohibited goods that could contribute to technological improvements in the Russian defense and security sector. These include, but are not limited to, chemicals, lithium batteries, thermostats, DC and servo motors for unmanned aerial vehicles (UAVs), machine tools and machine parts.

Product restrictions 

The EU also introduced additional restrictions on the import of goods that generate special income and thereby allow the continuation of the aggressive war against Ukraine, such as cast iron, copper and aluminum wire, foil, pipes and tubes totaling 2.2 billion euros per hour.

In addition, a new ban on the import of liquefied propane is being introduced with a 12-month transition period.

Strengthening control and preventing circumvention of sanctions against Russia

The ban on the transit of military goods through Russian territory is expanding. This applies to all military goods, regardless of their final purpose.

To further limit sanctions circumvention, today’s decision includes a ban on Russian citizens owning, controlling, or holding any positions in the governing bodies of legal entities, organizations, or bodies that provide wallet, account, or custody services for cryptocurrency assets to Russian individuals and residents.

In addition, the existing ban on the provision of services will be expanded to also include the provision of enterprise management software and software for industrial design and manufacturing.

Finally, the EU establishes notification requirements for the transfer of funds outside the EU by any EU-based entity that is owned or controlled by an entity established in Russia, or by a Russian citizen or individual resident in Russia.

Compliance with price restrictions on Russian oil

The EU Council has adopted tougher rules to support the implementation of a price cap on Russian oil.

A strengthened information sharing mechanism will allow for better identification of vessels and organizations engaged in deceptive practices. For example, such activities may include ship-to-ship transfers used to conceal the origin or destination of cargo and manipulation of AIS in the transport of Russian crude oil and petroleum products.

Rules for notification of the sale of tankers to any third country are being introduced. This measure is aimed at transparency in the sales of tankers, which can be used to circumvent the ban on the purchase of Russian oil, petroleum products or restrictions on the price of oil of Russian origin.

Individual sanctions

More than 140 additional individuals and entities are subject to an asset freeze. 

Thiscovers subjects of the Russian military and defense industry, including military industry companies and private military companies. This also includes entities in the IT sector, as well as other important economic entities. 

The measures are also directed against those who organized the so-called “elections” in the territories of Ukraine that were temporarily occupied by Russia, and those responsible for the forced “re-education” of Ukrainian children, as well as persons spreading disinformation/propaganda in support of Russia’s war of aggression against Ukraine.

New package of sanctions: what is known

On November 13, Vice-President of the European Commission and High Representative of the European Union for Foreign and Security Policy Josep Borrell announced that work on the 12th package of sanctions against Russia is being completed. Restrictive measures against Russia will be both personal, economic and sectoral.

The EU High Representative clarified that, in particular, more sanctions will be introduced against individuals, new bans on Russian exports will be applied, and among other things, a ban on Russian diamonds, a tightening of the upper limit on oil prices to reduce Russian profits, and new measures against circumvention of previously imposed sanctions.

On November 15, it became known that the heads of state and government of the member countries of the European Unionagreed on the 12th package of sanctions against the Russian Federation.

(C)UNIAN 2023