8th EU sanctions package on Russia

On 6 October, the European Union adopted a new eighth package of sanctions against the Russian Federation. This decision was a response to Russia’s ongoing aggression against Ukraine, the organisation of illegal sham “referenda” in parts of the Donetsk, Kherson, Luhansk, and Zaporizhzhia regions currently illegally occupied by the Russian Federation, the unlawful annexation of these Ukrainian regions by the Russian Federation, as well as mobilisation in the Russian Federation and renewed threats regarding the use of weapons of mass destruction.

What does the eighth sanctions package contain?

• The list of goods and technologies subject to restrictions has been expanded to include those that may contribute to strengthening the military and technological potential of the Russian Federation or to the development of the Russian defence and security sector, by adding certain chemical substances, paralysing and convulsant agents, and goods that have no other practical use than to carry out the death penalty, torture or other cruel, inhuman or degrading treatment or punishment, or which could be used for such purposes.
• The ban on the import of steel products originating from or exported from the Russian Federation has been extended. Import restrictions have been imposed on additional products that generate significant revenues for the Russian Federation. This ban applies to goods originating from or exported from the Russian Federation and includes products such as wood pulp and paper, certain components used in the jewellery industry such as stones and precious metals, some machinery and chemical products, cigarettes, plastics, and finished chemical products such as cosmetics.
• The export ban has been expanded by adding new products to the list of goods that could contribute to increasing Russian industrial capacity. Furthermore, restrictions have been imposed on the sale, supply, transfer, or export of additional goods used in the aviation and nuclear energy sectors.
• The criteria for listing entities subject to transaction bans have been broadened to include entities indirectly linked to Russian state-owned or state-controlled entities that facilitated the circumvention of sanctions.
• The threshold for the existing ban on providing services related to crypto-asset wallets, crypto-asset accounts, or custody of crypto-assets to persons in Russia or Russian residents has been removed, thereby prohibiting such services regardless of the total value of those crypto-assets.
• The existing ban on providing certain services to the Russian Federation has been extended to include architectural and engineering services, as well as IT consultancy and legal advisory services.
• The provision of technical assistance related to goods exported to Russia remains possible, provided that at the time such assistance is given, the sale, supply, transfer, or export of those goods is not prohibited under sanctions regulations.

Consequences of breaching sanctions on Russia

Pursuant to Article 8 of Council Regulation (EU) No 833/2014, Member States adopt rules establishing sanctions applicable in cases of breach of sanctions provisions and take all necessary measures to ensure their enforcement. Penalties imposed must be effective, proportionate, and dissuasive. The type and amount of penalties for non-compliance with sanctions in Poland are governed by the Act on special solutions to counteract support for aggression against Ukraine and to protect national security. This Act has not yet been amended to include the new sanctions package; however, the current penalties for violating EU sanctions include, among others:

• imprisonment for not less than 3 years,
• a financial penalty of up to PLN 20 million imposed by the Head of the National Revenue Administration.

Don’t take risks – seek legal advice

Economic law is one of the specialties of ATL LAW law firm. We have extensive experience working with foreign entities, including those outside the European Union. If you require consultations regarding sanctions imposed on Russia concerning services or export/import of specific goods, please contact us. We will analyse your individual case and assess the risks.