EU Adopts 15th Sanctions Package Against Russia... And More

As the year closes, the European Union (“EU”) continues to use sanctions as its foreign policy tool of choice. On December 16, 2024, the EU adopted a total of 15 texts providing for new sanctions. While the centerpiece, the 15th package against Russia, seeks to further support Ukraine by limiting Russia’s ability to wage its war of aggression, the EU is also taking actions in response to geopolitical developments globally.

The 15th package against Russia, while mostly technical, imposes a significant number of additional asset freeze measures and other individual list-based sanctions, which evidence the EU’s reinforced willingness to use its designation powers as a tool against circumvention. The 15th package also seeks to better protect EU companies by restricting the effectiveness of anti-suit injunctions in Russia, introducing “no liability” clauses for central securities depositories (“CSDs”), and extending the derogations permitting orderly exits from the Russian market.

At the same time, the first asset freeze measures were imposed under the previously adopted regime related to Russian hybrid threats, while similar measures were imposed under the regimes related to Belarus, Sudan, Haiti, and North Korea.

Texts related to asset freeze measures entered into force immediately upon publication in the Official Journal on December 16, 2024, whereas sectoral sanctions adjustments as part of the 15th sanctions package against Russia entered into force on December 17, 2024.

1. Asset freeze measures

1.1 New designations

Travel ban and/or asset freeze measures were imposed against:

• 54 natural persons (“individuals”) and 30 legal persons, entities, or bodies (“entities”) under the main asset freeze regime relating to Russia.¹

Those designations target persons providing military support to Russia, supporting the Russian oil sector, being responsible for children’s deportation, supporting Russian propaganda, or otherwise involved in the circumvention of EU sanctions. Designations target notably two members of the North Korean military, one EU national but also one Chinese national, two Hong Kong entities and four Chinese entities.

• 16 individuals and 3 entities under the asset freeze regime relating to Russian hybrid threats,² which correspond to the first designations under this regime and target parties both inside and outside Russia.

• 26 individuals and 2 entities under the asset freeze regime relating to Belarus,³ with designations targeting members of the judiciary, heads of correctional institutions, businesspersons, and businesses benefitting from the Lukashenka regime, as well as persons involved in circumvention of EU sanctions.

• 4 individuals under one of the asset freeze regimes relating to Sudan,⁴ with designations targeting both members of the Sudanese Armed Forces and the Rapid Support Forces.

• 3 individuals under the asset freeze regime relating to Haiti,⁵ with designations targeting gang members.

• 1 entity under the asset freeze regime relating to North Korea,⁶ this designation being in response to ballistic missile-related activities.

1.2 Amendments to derogations under the main asset freeze regime related to Russia, Regulation 269/2014

Extended derogation for divestment by certain designated individuals – National competent authorities ("NCAs") can now authorize transactions for the sale and transfer of proprietary rights owned by Arkady Romanovich Rotenberg, Gennady Nikolayevich Timchenko, and Boris Romanovich Rotenberg in entities established in the EU until 30 June 2025, provided the proceeds of the sale and transfer are frozen.

Previously, this derogation expired on 30 June 2024 and also covered Petr Olegovich Aven, Mikhail Maratovich Fridman, German Borisovich Khan, Alexey Viktorovich Kuzmichev, Igor Albertovich Kesaev, and OAO ‘VO Technopromexport’ and OOO 'VO Technopromexport'.

New derogation for CSDs – NCAs can now authorize the unfreezing of cash balances by CSDs when the Russian National Settlement Depository ("NSD") has debited an amount from the account held by that CSD with NSD—and without the CSD's consent—provided the released cash balance is used by the CSD to meet legal obligations towards its participants, does not exceed the amount debited by the NSD, and is not made available to an asset freeze target.

This derogation was introduced in response to increasing litigation and retaliatory measures in Russia, which permit seizure of assets of EU CSD that are held in Russia, without the CSD's prior consent, in order to allow the unfreezing of cash balances that are no longer due to designated entities and for CSD to meet their legal obligations towards their participants.

2. UPDATED SECTORAL SANCTIONS AGAINST RUSSIA

In addition to asset freeze measures described above, the 15th package provides for several amendments to Regulation 833/2014,⁷ which is the main regime providing for sectoral sanctions relating to Russia.

2.1 New list-based sanctions

Additions to the list of entities subject to enhanced restrictions on dual-use and advanced technology items – 32 newly designated entities have been added to the list in Annex IV of Regulation 833/2014 and are now subject to enhanced export-related restrictions on dual-use items⁸ and advanced technology items.⁹

These newly designated entities are located in and outside of Russia, including in China, Hong Kong, India, Iran, Serbia, and the United Arab Emirates.

Additions to the list of vessels subject to specific restrictions – An additional 52 vessels have been added to Annex XLII of Regulation 833/2014 and are now subject to the individual sanctions framework, introduced by the 14th sanctions package, that prohibits access to EU ports and locks and provides for a ban on the provision of a broad range of services.

Those vessels were designated either for being part of Russia's shadow fleet, supporting the Russian energy sector, transporting military equipment to Russia, or being involved in the transport of stolen Ukrainian grain.

2.2 Extended derogations

Winding-down operations in Russia – A number of derogations that permit NCAs to authorize transactions that are necessary to wind-down operations in Russia have been extended until 31 December 2025:

• Derogations from the transaction ban under Article 5aa of Regulation 833/2014 targeting entities listed in Annex XIX and certain of their affiliates ("Transaction Ban Target"):
• Derogation for the wind-down of joint ventures concluded before 16 March 2022 involving a Transaction Ban Target.
• Derogation for the divestment and withdrawal from EU entities by a Transaction Ban Target or its EU subsidiaries.

• Derogation from the prohibition to satisfy claims related to contracts or transactions affected by Regulation 833/2014 under Article 11 thereof when satisfying the claim is necessary to divest from Russia or wind-down business activities in Russia.

• Derogations from certain trade control measures, whether export- or import-related, and professional services restrictions, as foreseen under Article 12b of Regulation 833/2014, where:
• Necessary for the divestment from Russia or the wind-down of business activities in Russia; or
• Necessary for the divestment from an EU joint venture pre-dating 24 February 2022, involving Russian entities, and operating a gas pipeline infrastructure between Russia and third countries.

Whereas these derogations have been successively extended in the past, this time the extension is also accompanied by a warning, hinting that the derogation will not be renewed again:¹⁰

"Because of the risks of maintaining business activities in Russia, Union operators should consider winding down businesses in Russia and/or not to start new businesses there."

Ensuring Croatia’s and Czechia's security of supply of certain petroleum products – Member State-specific derogations or exemptions from the prohibition to purchase, import, or transport Russian crude oil and petroleum products have been extended as follows:

• Croatian NCAs can now authorize the purchase, import, or transfer of Russian vacuum gas oil subject to certain conditions until 31 December 2025, instead of 31 December 2024.

• The Czech Republic can continue to import and transfer petroleum products obtained from Russian crude oil imported via pipeline into another Member State until 5 June 2025, instead of 5 December 2024, provided the volumes imported do not exceed the average of the previous five years.

2.3 New mechanism to tackle anti-suit injunctions in Russia

Provisions were introduced to prohibit recognizing, giving effect, or enforcing in the EU:

• Injunctions, orders, reliefs, judgments, or other court decisions pursuant to or derived from Article 248 of the Arbitration Procedure Code of the Russian Federation or equivalent Russian legislation;

• Request for assistance, punishment or other sanction based on an alleged violation of the aforementioned injunctions, orders, reliefs, judgments, or other court decisions.

Article 248 of the Russian Arbitration Procedure Code provides for the exclusive jurisdiction of the Russian courts in certain circumstances, including in relation to disputes involving Russian parties that are subject to foreign sanctions, and empowers the Russian Arbitrazh (Commercial) Court to seek anti-suit injunctions, i.e., prohibitions to initiate or continue proceedings in foreign courts outside of Russia, subject to financial penalties.
The new provisions explicitly seek to address the increase in anti-suit injunctions, which have been associated with disproportionately high financial penalties for EU companies,¹¹ but their implications could be broader.

2.4 Specific no liability clause for CSD

Provisions were introduced to exempt CSDs from liability of any kind in relation to the good faith implementation of prohibitions and requirements related to immobilized assets of the Central Bank of Russia, unless a CSD’s action was a result of negligence. This no liability clause covers both the management of immobilized assets, as well as of cash balances stemming from those assets.¹²

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¹ Council Regulation (EU) No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty, and independence of Ukraine, OJ L 78, 17.3.2014, p. 6, as amended.

² Council Regulation (EU) 2024/2642 of 8 October 2024 concerning restrictive measures in view of Russia’s destabilizing activities, OJ L 2024/2642, 9.10.2024, as amended.

³ Council Regulation (EC) No 765/2006 of 18 May 2006 concerning restrictive measures against President Lukashenko and certain officials of Belarus, OJ L 134, 20.5.2006, p. 1, as amended.

⁴ Council Regulation (EU) 2023/2147 of 9 October 2023 concerning restrictive measures in view of activities undermining the stability and political transition of Sudan, OJ L 2023/2147, 11.10.2023, as amended.

⁵ Council Regulation (EU) 2022/2309 of 25 November 2022 concerning restrictive measures in view of the situation in Haiti, OJ L 307, 28.11.2022, p. 17, as amended.

⁶ Council Regulation (EU) 2017/1509 of 30 August 2017 concerning restrictive measures against the Democratic People's Republic of Korea and repealing Regulation (EC) No 329/2007, OJ L 224, 31.8.2017, p. 1, as amended.

⁷ Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine, OJ L 229, 31.7.2014, p. 1 (“Regulation 833/2014”).

⁸ As listed in Annex I of Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021 setting up a Union regime for the control of exports, brokering, technical assistance, transit, and transfer of dual-use items (recast), OJ L 206, 11.6.2021, p. 1, as amended.

⁹ As listed in Annex VII of Regulation 833/2014.

¹⁰ Recital (9) of Council Regulation (EU) 2024/3192 of 16 December 2024 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine, OJ L 2024/3192, 16.12.2024 (“Regulation 2024/3192”).

¹¹ Recital (8) of Regulation 2024/3192.

¹² Recital (7) of Regulation 2024/3192.

Annex

Overview of EU sanctions texts adopted on 16 December 2024

Amendments to Decision 2014/145/CFSP and Regulation 269/2014 – Main asset freeze regime related to Russia
Decision 2024/3182	- New designations (54 individuals and 30 entities) - New and extended derogations	Link	Press release
Regulation 2024/3189	- New and extended derogations	Link
Regulation 2024/3183	- New designations (54 individuals and 30 entities)	Link
Amendments to Decision 2014/512/CFSP and Regulation 833/2014 – Main sectoral sanctions regime related to Russia
Decision 2024/3187	- New list-based sanctions (32 entities under Annex IV & 52 vessels under Annex XLII) - Extended derogations to wind-down operations in Russia or ensure Croatia's and Czechia's security of supply of certain petroleum products - New mechanism to tackle anti-suit injunctions in Russia - Specific no liability clause for CSDs	Link	Press release
Regulation 2024/3192		Link
Amendments to Decision (CFSP) 2024/2643 and Regulation 2024/2642 – Regime related to Russian hybrid threats
Decision 2024/3174	- New designations (16 individuals and 3 entities)	Link	Press release
Regulation 2024/3188		Link
Amendments to Decision 2012/642/CFSP and Regulation 765/2006 – Regime related to Belarus
Decision 2024/3175	- New designations (26 individuals and 2 entities)	Link	Press release
Regulation 2024/3177		Link
Amendments to Decision (CFSP) 2023/2135 and Regulation 2023/2147 – Regime related to Sudan
Decision 2024/3154	- New designations (4 individuals)	Link	Press release
Regulation 2024/3156		Link
Amendments to Decision (CFSP) 2022/2319 and Regulation 2022/2309 – Regime related to Haiti
Decision 2024/3139	- New designations (3 individuals)	Link	Press release
Regulation 2024/3138		Link
Amendments to Decision (CFSP) 2016/849 and Regulation 2017/1509 – Regime related to North Korea
Decision 2024/3151	- New designation (1 entity)	Link	N/A
Regulation 2024/3152		Link