15th Sanctions Package Against Russia: 16 Dec 2024

Regulation Name: EU Adopts 15th Sanctions Package Targeting Russia

Publishing Date: 16 December 2024
Region: European Union
Agencies: European Commission

On December 16, 2024, the European Union introduced a comprehensive package of sanctions, consisting of 15 measures designed to address geopolitical challenges and reinforce support for Ukraine. At the heart of these measures is the 15th sanctions package against Russia, aimed at curbing its capacity to wage war while ensuring the protection of EU businesses and interests. Simultaneously, the EU imposed targeted sanctions on individuals and entities in Belarus, Sudan, Haiti, and North Korea.

Strengthened Measures Against Russia

The 15th sanctions package against Russia introduces extensive asset freeze measures, travel bans, and sectoral sanctions. These actions underscore the EU’s resolve to combat sanction circumvention and restrict Russia’s ability to sustain its aggression against Ukraine.

Key Measures Include:

1. Expanded Asset Freezes:

o Sanctions target 54 individuals and 30 entities, including those supporting Russia’s military efforts, oil sector, and propaganda machinery. Designations also cover individuals involved in children’s deportations and sanctions circumvention.

o Notable additions include two North Korean military members, a Chinese national, and multiple entities from Hong Kong and China.

2. Dual-Use and Advanced Technology Restrictions:

o Enhanced export-related restrictions now apply to 32 newly designated entities in Russia and other countries such as China, Hong Kong, India, and the UAE.

3. Sectoral Adjustments:

o 52 vessels, linked to Russia’s shadow fleet and military transport, face new prohibitions, including bans on port access and service provision.

4. Protections for EU Companies:

o A “no liability” clause for central securities depositories (CSDs) protects against legal claims related to managing frozen Russian assets unless due to negligence.

o Measures to counter Russian anti-suit injunctions aim to shield EU companies from financial penalties tied to Russian court orders.

Global Sanctions Beyond Russia

The EU expanded its sanctions framework globally, addressing a variety of security concerns:

1. Belarus:

o 26 individuals and 2 entities were sanctioned, including members of the judiciary and business figures supporting the Lukashenka regime.

2. Sudan:

o Four individuals from opposing military factions were targeted for their roles in the ongoing conflict.

3. Haiti:

o Sanctions were imposed on three gang leaders destabilizing the country.

4. North Korea:

o One entity was sanctioned for activities linked to ballistic missile development.

Extended and Enhanced Derogations

The EU introduced measures to allow controlled exits from Russian markets, urging businesses to divest and wind down operations by 2025. Key derogations include:

1. Asset Sales by Designated Individuals:

o Extended permissions allow transactions for divestment by certain individuals until June 30, 2025, with proceeds subject to asset freezes.

2. Trade and Professional Services:

o Extended derogations facilitate winding down operations related to pre-existing joint ventures and pipeline infrastructure.

3. Oil and Gas Exemptions:

o Member-specific exemptions support Croatia and Czechia’s energy needs, extending permissions to import certain Russian petroleum products until late 2025.

Implications and Next Steps

The EU’s latest sanctions package reflects a robust and strategic approach to geopolitical challenges. By targeting Russia’s war machinery, closing loopholes, and addressing global threats, the measures aim to uphold international stability and EU security.

Businesses operating in or connected to sanctioned regions are urged to take swift action to ensure compliance with evolving regulations. The EU’s warning to cease new ventures in Russia underscores the bloc’s long-term strategy to isolate adversarial regimes and safeguard its economic interests.

As these sanctions come into force—with asset freeze measures effective immediately and sectoral adjustments from December 17, 2024—their implementation will be closely monitored to ensure maximum impact on the targeted entities and individuals.

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