Andreas Ameed Fadoul’s Post

The 14th EU Russia sanctions package opens an interesting chapter by introducing the due diligence ('best effort') requirement in the world of sanctions. Here at Essex Law School we have one research project (with Tara Van Ho) where were are looking into the linkages/impacts between corporate business and human rights (BHR) practices and sanctions compliance. The world of sanctions is one of hard rules (obligation of result) that businesses must implement instantly; while in BHR the language of due diligence (obligation of effort) is familiar. The 14th EU sanction introduces an amalgam of the two worlds: 'sanctions due diligence'. It'll be interesting how member states go about enforcing sanctions due diligence requirement, given that the enforcement traditionally involved reactions to reports of sanctions violations.

🚨EU 14th Sanctions Package Now Officially Adopted - Legal texts to be published shortly ⁉️What’s in there? ❄️ New asset freeze measures 🌍 Requirement for EU parent companies to ensure their non-EU subsidiaries do not frustrate sanctions 🔎 Due diligence requirements (by law) for the most sensitive items ⛔️ New transaction ban mechanisms (secondary sanctions anyone?) ⚡️Measures targeting LNG (but not imports into the EU) 👮♂️New trade control restrictions ⚖️ Specific grounds to claim damages in the EU 👉 Stay tuned for our full analysis once the texts are out! #compliance #sanctions

EU recently adopted its 15th sanctions package of economic and individual restrictive measures (sanctions) against Russia. The measures were adopted through (i) Council Regulation (EU) 2024/3189 of 16 December 2024 amending Regulation (EU) No 269/2014 and (ii) Council Regulation (EU) 2024/3192 of 16 December 2024 amending Regulation (EU) No 833/2014. This latest alert from our #EconomicSanctions team authored by Elena Klonitskaya, Mikhail Bychikhin, FCIArb, Ana Amador, and Sofia Forestiere outlines the main elements of the sanctions package. Click below or on this link to read the full alert: https://lnkd.in/egHYrRir

RUSSIA SANCTIONS Council adopts 14th package of sanctions against Russia The European Council today announced the adoption of the 14th package of sanctions against Russia. Besides further sanctions for transports, in the finance and energy sector and additions to the sanctioned parties lists as well as lists of sanctioned items a focus is again on circumvention. The press release states: "First of all, EU parent companies will be required to undertake their best efforts to ensure that their third-country subsidiaries do not take part in any activities resulting in an outcome that the sanctions seek to prevent." It will be very interesting to see how these anti-circumvention measures will be implemented in practice. Which due dilligence requirements does this place on EU operators? Will this become a kind of extraterritorial application of EU sanctions going beyond the scope of Art. 13 of Regulation 833/2014? #sanctions #exportcontrols #trade #tradecompliance #kpmg https://lnkd.in/d2TQQbxx

Wow, didn't see that one coming! Here are the highlights of the officially adopted 14th Sanctions Package: 🔹 Non-EU subsidiaries: EU parent companies must ensure ("best effort") their subsidiaries in third countries do not engage in activities that circumvent sanctions. 🔹 Re-exportation Controls: EU operators selling battlefield goods to third countries must implement due diligence mechanisms to prevent re-exportation to Russia. 🔹 Knowledge Transfer: Contracts transferring industrial know-how for battlefield goods must now include provisions to prevent their use in Russia. 🔹 Financial Restrictions: The use of Russia’s 'System for Transfer of Financial Messages' (SPFS) by EU entities outside Russia is banned, alongside transactions with entities using SPFS to support Russia’s defense sector. 🔹 Transport Measures: Specific vessels contributing to Russia’s warfare are now banned from EU ports. The flight ban has been widened to include non-scheduled flights controlled by Russian entities. 🔹 Listings, incl. non-Russia entities: 61 new entities (incl. entities in China, Kazakhstan, Kyrgyzstan, Turkey, and UAE) have been added to the list of those supporting Russia’s military, facing tighter export restrictions. 🔹 Import-Export Controls: New restrictions are also imposed on exports of critical goods and imports from Russia. 🔹 Protection for EU Operators: Measures are introduced to allow EU operators to claim compensation for damages caused by Russian companies due to sanctions implementation. 🔹 The LNG sector is targetted, but only transshipment, not import. The full details of the legal acts will be published in the Official Journal of the EU. Stay tuned #EUSanctions

Unwrapping the EU’s 15th Sanctions Package (Full article: https://lnkd.in/dfzJdBfT) Once again, as in 2022 and 2023, the EU sanctions community received another sanctions package to unwrap just in time for the holiday season. Read more in our article by Baerbel Sachs, Dr. Tobias Zuber, Caroline Glöckle and Yuliya Zhmuro:

Circular 11/24: EU adopts 14th sanctions package against Russia On 24 June 2024 the EU Council adopted the 14th package of sanctions against Russia, which includes its first measures targeting Russia’s liquefied natural gas (LNG) sector, further export-related restrictions, sanctioning of vessels and new anti-circumvention measures, such as a requirement for EU companies to undertake best efforts to ensure that non-EU subsidiaries in third countries comply with EU sanctions. https://x.gd/MQMpK #EU #sanction #Russia #LNG

On September 24, 2024, for the first time, the United States, Canada, France, Germany, Italy, Japan, the United Kingdom, and the European Union (collectively, the G7) published joint guidance for industry on preventing the evasion of export controls and sanctions imposed on Russia. The guidance reflects the G7’s continued emphasis on preventing diversion of Common High Priority List (CHPL) items to Russia. Accordingly, parties involved in the export, reexport, or transfer (in-country) of CHPL items should be aware that these items are an enforcement priority in these jurisdictions. Steptoe attorneys Ryan Pereira and Alexandra Baj summarize the G7's joint guidance in a new blog post: https://lnkd.in/gccWYAz4

On 24 June 2024 the EU Council adopted the 14th package of sanctions against Russia, which includes its first measures targeting Russia's liquefied natural gas (LNG) sector, further export-related restrictions, sanctioning of vessels and new anti-circumvention measures, such as a requirement for EU companies to undertake best efforts to ensure that non-EU subsidiaries in third countries comply with EU sanctions. #sanctions #russia #restassured.