On December 16, 2024, the Council of the European Union adopted the fifteenth package of economic sanctions against Russia. These new measures are designed to combat circumvention of previous sanctions, notably by targeting Putin’s shadow fleet, and to weaken Russia’s military and industrial complex. 52 vessels from third countries have been targeted, bringing the total number of designated vessels to 79.
The Council added 84 entries to the list of sanctioned persons, with 54 individuals and 30 entities responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.
These entries target Russian individuals and their supporters, including Chinese companies. Indeed, for the first time, the Union is imposing comprehensive sanctions (travel ban, asset freeze, ban on making economic resources available) on various Chinese players supplying drone and microelectronic components in support of Russia’s war of aggression against Ukraine.
The Council also adopted a measure to better protect European companies from disputes with their Russian counterparts. Decisions based on the Code of Arbitration Procedure of the Russian Federation preventing the opposing party from initiating or continuing proceedings in a jurisdiction other than Russia cannot be recognized or enforced against European Union operators. These decisions violate established international principles and practices, while containing disproportionate financial penalties for European companies.
In addition, the Council has introduced a derogation allowing the release of cash balances held by EU Central Securities Depositories (CSDs). This measure is in response to the increase in litigation and retaliatory measures in Russia, leading to the seizure of CSD assets in the EU. Thanks to this derogation, CSDs will be able to ask the competent authorities in the Member States to release cash balances and use them to meet their legal obligations towards their customers.
Finally, the EU has extended the deadlines applicable to certain derogations required for divestments from Russia. In view of the risks involved in maintaining business activities in Russia, EU operators should consider terminating their activities in Russia and/or not setting up new operations there. The exceptional extension of the divestment derogations is necessary to enable EU operators to withdraw from the Russian market as quickly as possible. Just as extended derogations are granted on a case-by-case basis by Member States and are designed to enable an EU operator to withdraw rapidly from the Russian market, extended derogations will be granted on a case-by-case basis if the ordered divestment process would not be possible without the extended deadlines.
Link to the press release: Council of UE – Press release – Russia’s war of aggression against Ukraine: EU adopts 15th package of restrictive measures
The link to the regulations : Council Regulation (EU) 2024/3192 of 16 December 2024 amending Regulation (EU) No 833/2014 concerning restrictive measures in respect of actions by Russia destabilizing the situation in Ukraine and Council Regulation (EU) 2024/3189 of 16 December 2024 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty or independence of Ukraine.
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