The Council of the EU formally signed off on its 15th Russian Sanctions Package on Monday, 16 December. The package consists of an additional 54 persons and 30 entities responsible for actions undermining or threatening Ukraine’s territorial integrity. The measures are designed to target Putin’s shadow fleet and weaken Russia’s military and industrial complex.
The Council has added 32 new entities to the list of those supporting Russia’s war against Ukraine by imposing stricter export restrictions. These restrictions concern dual-use goods and technologies, as well as goods and technology, which might contribute to the technological enhancement of Russia’s defence and security sector. Some of these restrictions are located in third countries such as China, India, Iran, Serbia, and the UAE.
To protect EU companies, the Council has prohibited the recognition or enforcement in the EU of Russian court rulings that violate international principles, preventing high financial penalties for EU companies. The measure prevents penalties from being executed against EU operators in Europe.
In this context, EU countries have also agreed to establish a mechanism to compensate Euroclear for losses incurred due to Russian court decisions. This measure is relevant for the EU’s €18 billion share of the G7 loan to Ukraine, as it could potentially free up funds or prevent disruptions in Euroclear’s operations, ensuring that the loan to Ukraine proceeds smoothly. Euroclear holds a significant portion of immobilised Russian assets and is currently involved in litigation with sanctioned Russian parties seeking compensation through Russia’s politicised courts.
The EU has extended the deadlines for businesses to comply with rules for withdrawing or selling their operations in Russia. EU operators, however, should consider winding down businesses in Russia and/or not starting new businesses there. The extended derogations are granted on a case-by-case basis by member states and focus on allowing an orderly divestment process.
With Poland taking the EU Council Presidency in January 2025, it is expected that future sanctions against Russia will become more severe. The 15th Sanctions Package may serve as an early indication of a package in which EU businesses are directed to completely sever all ties with Russia.
The latest full consolidated version can be found here. A 16th Package, with further focus on energy, is expected in the early months of 2025.
