EU Enacts 14th Sanctions Package Against Russia, Targeting Energy and Finance

The European Union Council has approved its 14th round of sanctions against Russia, targeting energy, finance, and trade sectors while tightening measures to prevent sanctions evasion, according to the EU Council’s press service.

EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, stated: “Our sanctions have already significantly weakened the Russian economy and prevented Putin from accomplishing his plans to destroy Ukraine, although he still continues the illegal aggression targeting civilians and civilian infrastructure. The 14th package of sanctions demonstrates our unity in supporting Ukraine and seeking to limit Russia’s criminal activities against Ukrainians, including efforts to circumvent EU measures.”

New measures include prohibiting transshipment services for Russian Liquefied natural gas industry (LNG) on EU soil destined for third countries, covering ship-to-ship and ship-to-shore transfers. This doesn’t affect direct imports but focuses on re-exports through the EU.

Further restrictions entail halting investments and supplies for Russian LNG projects like Arctic LNG 2 and Murmansk LNG. Import rules for Russian gas via EU terminals outside the natural gas network will also be limited.

To address the issue of military goods found in Ukraine or crucial for Russian military development being re-exported, EU operators selling such goods to third countries must now establish due diligence mechanisms. These mechanisms are designed to identify and evaluate the risks associated with re-exporting to Russia, and take steps to mitigate these risks.

The EU also bans use of Russia’s ‘System for Transfer of Financial Messages’ (SPFS) and limits transactions involving designated entities using SPFS outside Russia.

Considering Russia’s efforts to disrupt democratic processes within the EU and undermine its democratic foundations, which include influence operations and the spread of disinformation, the EU prohibits political parties, NGOs, and media in the EU from accepting funding from Russia and its affiliates.

The EU has also widened flight and road transport bans, barring non-regular flights from landing, taking off, or flying over EU territory if they can be linked to Russian entities organizing trips or meetings.

Moreover, Josep Borrell is set to announce on June 24th the first tranche of assets from Russia that will be directed to Kyiv. Borrell is expected to make this declaration during a meeting of EU foreign ministers in Luxembourg.