Factbox-EU targets LNG and shipping in 14th Russia sanctions package
2024.06.24 12:28
BRUSSELS (Reuters) – European Union countries on Monday adopted a 14th package of sanctions against Russia over its 2022 invasion of Ukraine.
The package includes an array of measures and targets Russia’s gas sector for the first time. The bloc also added 69 entities and 47 individuals to its sanctions list, taking the total to over 2,200.
Among the new additions are Russia’s state-owned shipping firm Sovcomflot and its CEO as well as companies in China, Kazakhstan, Kyrgyzstan, Turkey, and the United Arab Emirates.
LNG
The EU bans the use of EU ports for the trans-shipment of Russian LNG after a 9-month transition period.
The EU also prohibits new investments and the provisions of goods, technology and services by EU operators for the completion of LNG projects under construction, such as Arctic LNG 2 and Murmansk LNG.
SHIPPING
The EU bans from its ports and locks ships that have contributed to Russia’s war effort.
This could include the transport of goods generating significant revenue for Russia, goods or technology used in the defence and security sector or shipment of fuels outside the G7 oil price cap system.
The EU has so far included 27 vessels under this framework.
CRACKDOWN ON VIOLATIONS
EU operators would also be held accountable if non-EU entities they own or control flout sanctions.
For sensitive goods that are used on the battlefield or are critical to Russia’s military, operators would have to have due diligence systems to identify and mitigate risks of exports to Russia. Failure to do so could leave the operator liable.
POLITICAL PARTIES, THINK TANKS, MEDIA
The EU prohibits political parties, foundations, think tanks and media providers from receiving financing, donations or other economic benefits directly or indirectly from Russia.
The EU added Voice of Europe, RIA Novosti, Izvestia and Rossiyskaya Gazeta to the sanctioned media list ahead of the EU parliamentary elections that took place June 6-9.
CHEMICALS, MATERIALS
The EU bans the import of helium from Russia and impose further restrictions on exports of goods that could boost Russian industry, including manganese ores and rare earths, as well as excavating machinery and electrical equipment.
DIAMONDS
The EU delayed the start of mandatory full-traceability scheme for imports of rough and polished diamonds to the bloc by six months – until March 1, 2025 – as its 14th package amended the import ban on Russian diamonds already agreed in the 12th package.
It also postponed the ban on jewellery incorporating Russian diamonds processed in third countries. This will be reevaluated according to action taken within the G7.
It clarified that the ban did not apply to diamonds that had been outside Russia or were polished in a third country before the ban entered into force.
TRANSPORT
The package tightens the prohibition on Russian flights to include any aircraft where a Russian person or entity determines the place or time of landing and places. It requires operators to give authorities details of plane ownership and, in some cases, passengers.
It also tightens rules on transport of goods by road to exclude companies in which Russian persons or firms own 25% or more.
SWIFT ALTERNATIVE
EU banks outside Russia will no longer be able to use Russia’s equivalent to global payments system SWIFT.
The EU may also use this measure to prohibit non-Russian third country banks connected to Russia’s alternate system called SPFS from business with EU operators.
