Sanctions against Russia (as of December 20, 2022)


December 20, 2022
supervision

On 16 December 2022, the EU published a ninth sanctions package against Russia and Belarus. In this newsletter we provide you with a brief explanation of this new sanctions package.

Sanctions against Russia

In response to Russia’s ongoing war of aggression against Ukraine, the Council adopted a ninth sanctions package. With this, the Council wants to increase the pressure on Russia and its government.

The new package provides:

  • Export Controls and Restrictions
    New export controls and restrictions are being introduced for dual use goods and goods and technology that can contribute to the technological development of the Russian defense and security sector. The list of entities associated with Russia’s military-industrial complex and subject to sectoral measures is significantly expanded, adding 168 entities. To prevent circumvention of the sanctions, some Russian-owned entities located in the illegally annexed Crimea or Sevastopol have also been added to the list.

    In addition, the EU will expand the export ban on goods and technology for the aerospace industry. This ban will now also apply to aviation engines and their components, for both manned and unmanned aircraft. This means that the direct export of drone engines to Russia and any third country that could supply drones to Russia will henceforth be prohibited.

    The existing and new measures are in no way directed against trade in agricultural products and foodstuffs, including wheat and fertilizers, between third countries and Russia. It has therefore been decided to introduce a derogation from the freezing of assets and the prohibition on making funds and economic resources available. This should prevent disruptions in payment channels for agricultural products.

  • Banking sector
    The EU adds another 2 Russian banks to the list of entities whose assets will be frozen. The Russian Regional Development Bank is also included in the list of entities owned or controlled by the Russian state and subject to a complete ban on transactions.
  • Broadcasting activities
    The EU also wants to counter Russia’s systematic, international campaign of disinformation and information manipulation, which aims to destabilize its neighbors and the EU and its Member States. Therefore, the Council has taken the first steps to suspend the broadcasting licenses of another 4 media channels: NTV/NTV Mir, Rossiya 1, REN TV and Pervyi Kanal. In line with the Charter of Fundamental Rights, the measures do not prevent these media outlets and their staff from engaging in non-broadcasting activities in the EU, such as research and interviews.
  • Advisory Services
    It has also been decided to ban the provision of advertising, market and opinion research services to Russia, as well as product testing and technical inspections.
  • Energy and mining
    The EU is extending the ban on new investment in the Russian energy sector by also banning new investment in Russian mining. This prohibition will not apply to the mining and extraction of certain critical raw materials.
  • Other measures
    As of today, EU nationals will be prohibited from holding positions in the governing bodies of any legal person, entity or body established in Russia that is owned or controlled by the Russian state.
  • Individual Sanctions
    In addition to these economic sanctions, the Council also adopted a broad package of individual sanctions. A very large number of persons and entities are placed on the sanctions list.

What institutions that are supervised by DNB must do

In short, DNB expects the following:

  • Check whether these regulations apply (for example to you, your clients, participants or investments made).
  • If these ordinances apply, immediately apply the commands and prohibitions in the ordinances.
  • If the institution establishes that the identity of a relation corresponds to a (legal) person or entity as referred to in the sanctions regulations and therefore finds a so-called ‘hit’, you must immediately report this to DNB. You can use the Digital Counter for Supervision (DLT) to submit the sanction notification. We would like to refer you to this article for a further explanation of the scope of the sanction reporting obligation.
  • If DNB has any questions in response to your report, please answer them immediately.
  • In certain cases, a ‘hit’ can be classified as an unusual transaction within the meaning of the Money Laundering and Terrorist Financing Prevention Act (Wwft). If so, also report this transaction to FIU-the Netherlands.

This is an additional news service, institutions themselves retain the responsibility to timely and accurately monitor and comply with sanctions legislation. We realize that a lot is being asked of you and that the sanction changes follow each other in rapid succession.

DNB also has an alert service about changes to UN, EU and NL sanctions regulations that you can receive by email. If you want to use this, you can register for this at the news service. An alert email was sent on December 19, click here for the link to this message.

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