The case

According to well-informed sources, the European Union is weighing a new round of restrictions that would hit some € 5 billion ($ 5.3 billion) in trade with Russia as part of a sanctions package targeting Moscow for its war against Ukraine. The bloc’s 12th package since Russia launched its invasion last year will tighten restrictions on Moscow’s revenue sources and industry and curtail the Kremlin’s ability to feed its war machine. Vast swathes of Russia’s economy have already been targeted, leaving EU policymakers to plug gaps, use targeted measures and tighten existing sanctions.

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Source: Press in EU and US DoJ

The commentary

Overall, three types of sanctions have been imposed: a) ban on provision of technology for oil and gas exploration, b) ban on provision of credits to Russian oil companies and state banks, c) travel restrictions on the influential Russian citizens close to President Putin as well as those involved in the annexation of Crimea and the war against the Ukraine. In July 2023 Russia made a decree that companies from the “Unfriendly Countries List” leaving Russia must sell their assets to Russian buyers at a 50% discount and in addition, must pay a 10% tax levy of at least 10% of the transaction price. The decree also bans including buyback options.

Note as well: Four Arrested and Multiple Russian Nationals Charged in Connection with Two Schemes to Evade Sanctions and Send U.S. Technology Used in Weapons Systems to Russia. US DoJ News

 

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