Three years on: EU and UK ramp up sanctions to mark Ukraine invasion

Three years to the day following Russia’s invasion of Ukraine, the United Kingdom and the European Union have ramped up sanctions against Russia.

Announcing its 24 February measures, the European Union said:

‘Today’s package targets 74 additional vessels, bringing the total number of listed vessels to 153. These vessels are part of the shadow fleet or contributed to Russia’s energy revenues,’ and added,

‘The measures add a new listing criterion, targeting those who support the operations of unsafe oil tankers.

The package imposes targeted export restrictions on 53 new companies supporting Russia’s military-industrial complex or engaged in sanctions circumvention. This includes 34 companies in countries other than Russia.’

‘In addition to new designations, the 16th package also adds ‘new criteria for listing individuals and entities that are part of Russia’s military and industrial complex, support it, or benefit from it.’

The sanctions also include a new ban on EU imports of primary aluminium from Russia, with, ‘to ensure a smooth transition for businesses, a quota mechanism… introduced, allowing 275,000 tons, which equates to 80% of EU imports in 2024, to be used over a 12-month period.’

Other measures include ‘dual-use export restrictions… extended to additional items in order to cut Russia’s access to key technologies it has been using on the battlefield, covering:

• Dual-use chemical precursors to produce chloropicrin and other riot control agents used as chemical weapons by Russia in violation of the Chemical Weapons Convention.
• Software related to Computer Numerical Control (CNC) machine tools used to manufacture weapons, and video-game controllers used by the Russian army to pilot drones on the battlefield.
• Chromium ores and compounds due to their military applications.’

On the energy front, the EU has ‘decided to completely prohibit temporary storage or the placement under free zone procedures of Russian crude oil or petroleum products in EU ports, which was until now allowed, if the oil complied with the price cap and went to a third country,’ and the extension of a flight ban ‘to enable the listing of third-country carriers conducting domestic flights within Russia or supplying aviation goods to Russian airlines or for domestic flight in Russia.’

The EU also notes that ‘Russia has diverted much of its financial flows via smaller banks. The 16th package strengthens our measures on the financial sector. In particular:

• Addition of 13 financial institutions to the list of entities subject to the prohibition to provide specialised financial messaging services.
• Addition of 3 banks to the transaction ban due to their use of the Financial Messaging System of the Central Bank of Russia (SPFS) system to circumvent EU sanctions.
• Extension of the transaction ban to enable the EU to list financial institutions and crypto asset providers that participate in the circumvention of the Oil Price Cap and facilitate transactions with listed vessels of the shadow fleet.’

The United Kingdom has also imposed sanctions to mark the third anniversary of the invasion. The UK Foreign Commonwealth and Development Office (‘FCDO’) says that its targets include:

• ‘Producers and suppliers of machine tools, electronics and dual-use goods for Russia’s military, including microprocessors used in weapons systems… based in a range of third countries including Central Asian states, Turkey, Thailand, India and China, which is the largest supplier of critical goods for Russia’s military
• ‘North Korean Defence Minister No Kwang Chol and other North Korean generals and senior officials complicit in deploying over 11,000 DPRK forces to Russia’
• ’13 Russian targets, including LLC Grant-Trade, its owner Marat Mustafaev and his sister Dinara Mustafaeva, who have used the company to funnel advanced European technology into Russia to support its illegal war.’

It says, ‘For the first time, we are using new powers to target foreign financial institutions supporting Russia’s war machine. We are sanctioning the Kyrgyzstan-based OJSC Keremet Bank, disrupting Russia’s use of the international financial system to support its war efforts.’ UK Foreign Secretary David Lammy said the sanctions ‘underscore the UK’s commitment to Ukraine,’ adding,

‘Every military supply line disrupted, every rouble blocked, and every enabler of Putin’s aggression exposed is a step towards a just and lasting peace, and towards security and prosperity in the UK as a part of this government’s Plan for Change. Lasting peace will only be achieved through strength … As the world marks the grim milestone of Putin’s full-scale invasion entering its fourth year, we cannot and will not turn our backs on Ukraine in their fight for our shared security.’

https://ec.europa.eu/commission/presscorner/detail/en/i_p_25_585                                          

https://www.gov.uk/government/news/uk-announces-largest-sanctions-package-against-russia-since-2022