New EU and UK sanctions on Russia target circumvention and military suppliers

The European Union has agreed a 13th package of sanctions on Russia for its invasion of Ukraine, targeting circumvention and ‘key sectors of the Russian economy,’ as the United Kingdom announced ‘more than 50 new sanctions to diminish Putin’s weapons arsenal and war chest.’ The sanctions coincide with the second anniversary of Russia’s invasion of Ukraine.

The new EU measures reportedly for the first time target Chinese and Indian companies accused of supporting Moscow’s war effort, while the UK said it was cracking down on President Vladimir Putin and ‘those supplying his depleted armoury with munitions such as rocket launch systems, missiles and explosives.’

‘EU Ambassadors just agreed in principle on a 13th package of sanctions in the framework of Russia’s aggression against Ukraine,’ Belgium, which holds the EU presidency until the end of June, said in a post on X, 21 February. ‘This package is one of the broadest approved by the EU. It will undergo a written procedure and be formally approved for 24 February,’ the two-year anniversary of Russia’s invasion of Ukraine.

‘We are adding almost 200 persons and entities to our package of designations bringing EU listings to over 2000,’ the EU’s foreign policy chief Josep Borrell said on X. ‘With this package, we are taking more action against entities involved in circumvention, the defence and military sectors,’ he added.

Meanwhile, the Financial Times reported seeing documents showing that the measures will target three companies in mainland China and one in India, alongside businesses in Sri Lanka, Turkey, Thailand, Serbia and Kazakhstan.

In a note to the EU Parliament just before the latest sanctions were agreed, EU financial services chief, Mairead McGuinness, said, ‘The sanctions target key sectors of the Russian economy, including energy, with measures such as an export ban on goods and technology suited for use in the oil and gas sectors, a ban on new investments in the Russian energy sector, a ban on Russian coal, seaborne oil and petroleum products imports into the EU and a G7+ coordinated price cap on Russian oil transported to third countries.’ She was answering a question by Parliament about why natural gas imports into the EU have not been stopped through sanctions.

In the UK, the Foreign, Commonwealth & Development Office (‘FCDO’) announced, ‘New targets include munitions manufacturers, electronics companies, and diamond and oil traders…These new sanctions also target key sources of Russian revenue, clamping down on metals, diamonds, and energy trade, and cutting off funding for Putin’s illegal war from every angle.’

The UK said its latest sanctions target:

• Companies linked to manufacturing munitions such as rocket launch systems, missiles, explosives and other critical goods used in military equipment. This includes Sverdlov State Owned Enterprise, the largest enterprise in the Russian ammunition industry.
• Key Russian importers and manufacturers of machine tools, which are instrumental in manufacturing vital defence systems and components, ranging from missiles and engines to tanks and fighter jets.
• Oil trader Niels Troost and his company Paramount Energy & Commodities SA. Troost facilitates the unfettered trade of Russian oil outside the reach of UK and G7 sanctions, including through UAE-based Paramount Energy & Commodities DMCC, which the UK designated in November 2023.
• Fractal Marine DMCC, Beks Ship Management, and Active Shipping, which operate in the Russian energy sector as part of Putin’s shadow fleet.
• Two Russian diamond companies and Pavel Alekseevich Marinychev, the new CEO of Alrosa, the largest state-owned Russian diamond producer, estimated to hold a 30% share in the global diamond market.
• Five senior executives or owners of Russia’s top producers of copper, zinc and steel.