The eighth package of EU sanctions paves the way for the implementation of the G7-agreed price cap on Russian oil and prohibits EU citizens from holding positions in the management bodies of some Russian state-owned companies. The package also introduces new EU import bans that have cost Russia 7 billion euros in revenue, as well as export restrictions that will hit the Kremlin’s military and industrial sectors. According to the European Commission’s statement, the sanctions also deprive the Russian army and its suppliers of other necessary specific goods and equipment.

First of all, the Package of Measures, published in the Official Journal of the EU, lays the groundwork for the legal framework needed to implement the G7 oil price cap.

In particular, this package contains the following items:

The EU has expanded the list of those subject to EU asset freezes and travel bans

Other individuals and legal entities were also sanctioned. The package is aimed at those involved in the Russian occupation, illegal annexation and fake “referendums” in the occupied territories of Donetsk, Luhansk, Kherson and Zaporizhzhia regions. This also includes individuals and legal entities working in the defense sector, such as senior officials and the military, as well as companies that support the Russian armed forces. The EU also continues to prosecute people who spread disinformation about the war.

The EU restrictive measure targets key decision-makers, oligarchs, high-ranking military and propagandists responsible for undermining Ukraine’s territorial integrity.

Extension of restrictions to Kherson and Zaporizhzhia regions

The geographic area of ​​application of sanctions in response to the recognition of partially Russian-controlled territories of the Donetsk and Luhansk regions of Ukraine was expanded to include all controlled territories of Ukraine, namely Donetsk, Luhansk, Zaporizhia and Kherson regions.

New restrictions on exports from Russia

Additional export restrictions were introduced to reduce Russia’s access to military, industrial and technological products, as well as its ability to develop its defense and security sector.

It is about banning the export of coal, including coking coal (used in Russian industrial enterprises), certain electronic components (used in Russian weapons), technical products used in the aviation sector, as well as some chemicals.

Added a ban on the export of small arms and other goods in accordance with the Regulation on Torture.

New import restrictions

Additional restrictions on imports worth almost 7 billion euros were agreed.

It includes, for example, a ban on the import of Russian finished steel products and semi-finished products (subject to a transition period for some semi-finished products), machinery and appliances, plastics, vehicles, textiles, footwear, leather, ceramics, some chemicals and jewelry that are not made of gold.

Implementation of oil price restrictions

Today’s package marks the beginning of the EU’s implementation of the G7 agreement on the export of Russian oil. Although the EU ban on imports of Russian crude oil by sea remains in place, the price cap once implemented will allow European operators to carry out and maintain the transport of Russian oil to third countries, provided that its price remains lower than before. “ceiling” set.

This will further reduce Russia’s revenues while maintaining the stability of global energy markets through continued supplies.

Thus, it will also help tackle inflation and keep energy costs stable at a time when high costs, especially high fuel prices, are a serious concern for all Europeans.

This event is closely coordinated with G7 partners. According to the new Council decision, it will take effect after December 5, 2022 for crude oil and February 5, 2023 for petroleum products.

Restrictions for Russian state-owned enterprises

Today’s package prohibits EU citizens from holding positions in the management bodies of some state-owned enterprises.

It also bans all transactions with the Russian Maritime Register, adding it to the list of state-owned enterprises subject to the transaction ban.

Financial consulting, IT

Existing bans on cryptocurrency assets have been strengthened by banning all cryptocurrency wallets, accounts or depository services, regardless of the value of the wallet (previously up to €10,000 was allowed).

The package expands the range of services that can no longer be provided to the Russian government or legal entities registered in Russia: they now include IT consulting, legal consulting, architectural and engineering services.

“They are significant because they could weaken Russia’s industrial potential, as it is highly dependent on imports of these services,” the European Commission said in a statement.

Deterring sanctions evasion

The EU has introduced a new criterion to the list that will allow it to apply sanctions to persons who facilitate the violation of the anti-circumvention ban.

“EU sanctions against Russia have proven to be effective. They affect Russia’s ability to produce new weapons and repair existing ones, and also impede the transportation of materials. The geopolitical, economic, and financial consequences of Russia’s continued aggression are obvious, as the war has undermined global commodity markets, especially agricultural and food products. The EU continues to ensure that its sanctions do not affect Russian energy and agri-food exports to third countries. As the guardian of the EU treaties, the European Commission monitors the application of EU sanctions throughout the EU. The EU is united in its solidarity with Ukraine and will continue to support Ukraine and its people together with its international partners, including through additional political, financial and humanitarian support,” the EC statement said.

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