On June 3, 2022, the European Union (EU) published its sixth package of sanctions against Russia.¹

The new sanctions prohibit the import of crude oil and petroleum products from Russia, de-SWIFT 3 Russian banks, ban the provision of certain business-relevant consulting services, impose further restrictions concerning certain Russian media channels, introduce new export restrictions and designations. Our team sets out the main takeaways for EU companies below.

Oil import restrictions

Following announcements made at the end of May 2022, the EU has reached an agreement on the partial ban of Russian oil products. The sixth sanctions package prohibits EU Persons from:

• Purchasing, importing or transferring into the EU, directly or indirectly, crude oil and certain petroleum products which originate in Russia, or are exported from Russia.

  
  

  For contracts that were entered into before June 4, 2022, a wind-down period of six or eight months applies, depending on the product in question. Further exceptions apply to seaborne crude oil and petroleum products that originate in a third country but are loaded in/depart from/transit through Russia; and crude oil falling under CN 2709 00 if delivered by pipeline.

  
  

  Moreover, landlocked Member States may still import seaborne crude oil from Russia if their pipeline supply would be interrupted. Finally, Bulgaria, Czechia and Croatia received the further authorizations to allow for certain transactions after until end of 2023 and 2024 respectively.

• Being involved in providing financing, brokering, as well as insurance and reinsurance of maritime transport of Russian crude oil/petroleum products to third countries. A wind-down period applies for contracts entered into before June 4, 2022, until December 5, 2022.

The ban of further Russian banks from SWIFT

The prohibition on the provision of SWIFT has been extended to Sberbank, Credit Bank of Moscow and Russian Agricultural Bank. The SWIFT ban for these banks will take effect as of 14 June 2022.

Broadcasting suspension

On March 2, 2022, the EU banned certain Russian broadcasting channels in the EU. In the sixth package, the EU has added Rossiya RTR/ RTR Planeta; Rossiya 24/Russia 24; and TV Centre International as banned broadcasters. Furthermore, EU Persons are now prohibited from advertising products or services in any content produced or broadcast by sanctioned television networks.

Consulting services

The EU has prohibited the direct or indirect provision of certain business-relevant services. The services concerned are accounting, auditing, including statutory audit, bookkeeping or tax consulting services, or business and management consulting or public relations services. EU Persons may no longer provide such services to the Government of Russia, or entities established in Russia.

While these services are not defined, the Regulation concerned provides the following description thereof:

Accounting, auditing, bookkeeping and tax consultancy services cover the recording of commercial transactions for businesses and others; examination services of accounting records and financial statements; business tax planning and consulting; and the preparation of tax documents. Business and management consulting and public relations services cover advisory, guidance and operational assistance services provided to businesses for business policy and strategy and the overall planning, structuring and control of an organization. Management fees, management auditing; market management, human resources, production management and project management consulting; and advisory, guidance and operational services related to improving the image of the clients and their relations with the general public and other institutions are all included.

EU Persons are allowed to undertake actions strictly necessary for the termination of contracts entered into force before June 4, 2022 until July 5, 2022. Services strictly necessary for the exercise of the right of defense in judicial proceedings, and the right to an effective legal remedy, as well as services provided to Russian entities owned by EU-established entities are exempted.

Export restrictions

The sixth sanctions package includes further restrictions and developments as regards export restrictions, these are the following:

• The inclusion of 92 entities to the list of entities subject to dual-use export restrictions²;
• The expansion of the list of goods and technology which may contribute to the military and technological enhancement, or the development of the defence and security sector of Russia³;
• The addition of the UK and South Korea to the list of partner countries that have substantially equivalent export control measures.

Designations

As part of the sixth package of sanctions, the EU has designated an additional 65 individuals and 18 legal entities to the sanctions list.⁴

We recall that EU sanctions are binding on nationals of an EU member state wherever located, legal entities incorporated within an EU member state, all persons located within the EU, all persons in respect of business done in whole or in part within the EU, and to all persons on board aircraft and vessels within the jurisdiction of an EU member state (EU Persons).

Dentons will continue to monitor and report as events unfold. Please feel free to reach out to your Dentons relationship partner if you have any questions or require assistance in sanctions compliance.

1. The EU legal instruments are: Council Implementing Regulation (EU) 2022/878 of 3 June 2022 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine, OJ L 153, 3.6.2022, p. 15; Council Regulation (EU) 2022/879 of 3 June 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine, OJ L 153, 3.6.2022, p. 53; Council Decision (CFSP) 2022/883 of 3 June 2022 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine, OJ L 153, 3.6.2022, p. 92; Council Decision (CFSP) 2022/884 of 3 June 2022 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine, OJ L 153, 3.6.2022, p. 128.
2. see Annex I of Council Regulation (EU) 2022/879.
3. see Annex II of Council Regulation (EU) 2022/879.
4. see Annex of Council Implementing Regulation (EU) 2022/878.