13th sanctions package against Russia: Third countries and drones

On 23 February 2024, the EU adopted its 13th package of sanctions against Russia (Implementation by Regulations (EU) 2024/745 and 2024/753 amending Regulations (EU) No 833/2014 and No 269/2014 respectively). This follows on from the previous package fairly quickly after just under two months, meaning that the key goods-related sanctions came into force on the second anniversary of the Russian full-scale invasion of Ukraine on 24 February 2024. Essentially, the changes to the EU sanctions regime are limited to expanding the lists of sanctioned goods and individuals.

194 new listings of individuals and entities

The 13th sanctions package adds another 194 individual designations, including 106 natural persons and 88 entities, to the EU’s sanctions regime against Russia. This means that over 2,000 individuals and entities are now covered by the measures.

The new listings relate in particular to the military and defence sector, from which over 140 persons with links to the defence equipment manufacturing have been added. The areas affected include missiles, drones, air defence systems and high-tech components for weapons.

In addition, the increasingly widely known support for Russia from the Democratic People’s Republic of Korea was explicitly addressed for the first time by listing Russian logistics specialists, the North Korean defence minister and Belarusian supporters.

Other individuals listed are those involved in the administration of the occupied Ukrainian territories or the resettlement of Ukrainian children.

Finally, in a rather symbolic move given the scale of the problem, three Russian players were listed in connection with circumvention transactions.

Product-related and industry sanctions expanded

The recent expansion of goods-related sanctions mainly affects companies involved in the procurement of drones and introduces some industry sanctions in this area.

There are 27 new entries in Annex IV of Regulation (EU) No 833/2014, which lists companies from, or with links to, the Russian military-industrial complex. These once again include companies from third countries, including for the first time three companies from mainland China. Companies registered in India, Kazakhstan, Serbia, Singapore, Sri Lanka, Thailand and Turkey have also been included for the first time.

In addition, the list of goods and technologies that could help strengthen the military and technological situation in Russia or contribute to the development of the defence and security sector has been supplemented by adding components for the development and manufacture of drones: Annex VII Part B, to which the prohibitions in Article 2a(1) and 2b(1) of Regulation (EU) No 833/2014 refer, now includes aluminium electrolytic capacitors of sub-heading 8532 22 HS. Annex XXIII now covers item 8504 HS (“Electrical transformers, electrical power converters (e.g. rectifiers) and inductors and other self-induction coils”) as a whole. For the new sub-headings covered by this, the execution of old contracts dating from before 24 February 2024 and related ancillary contracts is exempted by Article 3k(3ac) from the prohibition under Article 3k(1) and (2) of Regulation (EU) No 833/2014 up to 25 May 2024.

New partner country; extended list of high priority sanctioned items

Finally, the United Kingdom has been added to the list of partner countries for iron and steel imports in Annex XXXVI. This means that proof is no longer required for imports of iron and steel products from the United Kingdom in accordance with Article 3g(1)(d) of Regulation (EU) No 833/2014.

Alongside this, on 22 February 2024 the EU Commission added five entries to the Common List of High Priority Sanctioned Items (List of common high priority items, available at https://finance.ec.europa.eu/document/download/5a2494db-d874-4e2b-bf2a-ec5a191d2dc0_en?filename=list-common-high-priority-items_en.pdf). These relate to CNC machine tools for working metal and related components, and are grouped in the new Tier 4.B of the list. Sub-headings 8457 10, 8458 11, 8458 91, 8459 61 and 8466 93 HS are affected.