EU toughens Belarus stance to tackle circumvention of Russia sanctions

The European Union has adopted tougher sanctions against Belarus, largely in a bid to clamp down on circumvention of Russia sanctions, noting, ‘the close integration of the Russian and Belarusian economies has substantially facilitated the circumvention of existing sanctions against Russia.’

The new measures include provisions relating to trade, services, transport and anti-circumvention, while also including measures that ‘allow EU operators to claim
compensation from damages caused by Belarusian individuals and companies due to
sanctions implementation and expropriation, provided that the member state national
or company concerned does not have effective access to remedies, for example under
the relevant bilateral investment treaty.’

Main aspects include an extension of the export ban on dual-use/advanced goods and
technologies, ‘as well as introducing further export restrictions on goods which could
contribute to the enhancement of Belarusian industrial capacities,’ as well as:

• ‘Further restrictions on exports to Belarus of maritime navigation goods and
  technologies, and luxury goods.’
• A prohibition of on imports, direct or indirect, of gold and diamonds from
  Belarus, as well as helium, coal and mineral products including crude oil.
  It is also introducing a ban on the provision of services, including,
• ‘accounting services, auditing services, including statutory audit, bookkeeping
  services, tax consulting services, business and management consulting
  services, and public relations services;
• ‘architectural and engineering services, as well as IT consultancy services and
  legal advisory services; and
• ‘advertising, market research and public opinion polling services, as well as
  product testing and technical inspection services,’ to Belarus, government
  bodies and to ‘any natural or legal person acting on their behalf or direction.’
  

Another element of the new package is that in future, EU exporters must insert in
contracts concerting transactions relating to some specialist technologies, a ‘no-Belarus clause’, through which ‘they contractually prohibit the re-exportation to Belarus
or re-exportation for use in Belarus of sensitive goods and technology, battlefield
goods, firearms and ammunition.’

This mirrors the ‘no-Russia’ clause introduced earlier this year, guidance for which
suggested that inclusion of such a clause does not excuse companies from having in
place strong due diligence frameworks, and also that such clauses should include
adequate remedies in case of breach, such as contract termination, or a penalty of a
given percentage of the value of the agreement.

See:
https://www.consilium.europa.eu/en/press/press-releases/2024/06/29/belarus-involvement-in-russia-s-war-of-aggression-against-ukraine-new-eu-restrictive-measures-target-trade-services-transport-and-anti-circumvention/