Unwrapping the EU’s 15th Sanctions Package

A. Introducing the 15^th Sanctions Package

Once again, as in 2022 and 2023, the EU sanctions community received another sanctions package to unwrap just in time for the holiday season. This concludes another busy year in EU sanctions, with two major sanctions packages, most notably the 14^th sanctions package which brought many changes and additions to the EU’s already broad sanctions regime including the “best efforts” obligation and an extension of the “No Russia Clause”.

Compared to the previous packages, the 15^th sanctions package (which covers Regulation 2024/3189, Regulation 2024/3183 and Regulation 2024/3192) appears smaller in scope and less remarkable than its precursor. Yet, it does contain noteworthy additions and relevant adjustments.

B. Content: New listings, banning Russia’s shadow fleet and a provision shielding EU companies against anti-suit injunctions

The Council added 54 individuals and 30 entities linked to Russia's actions in Ukraine to its asset freeze list, including Russian defense and shipping companies, military units, DPRK officials as well as Chinese suppliers of drone components.

A new derogation to the asset freeze in Article 6b(5j) of Regulation No. 269/2014 allows EU central securities depositories (CSD) to request the unfreezing of cash balances to meet legal obligations, addressing litigation and retaliatory measures in Russia affecting EU CSD assets.

In order to curb circumvention through the so-called ‘shadow fleet’, the Council has further banned port access and certain services for 52 additional third country vessels supporting Russia's energy sector, military transport, or involved in transporting Ukrainian grain.

In addition, the Council targets 32 new entities, including several Chinese entities, with reinforced export controls regarding dual-use goods and technologies on the grounds that they were found to be directly supporting Russia’s military and industrial complex in its aggression against Ukraine.

The new Article 11c of Regulation No. 833/2014 is designed to shield EU companies from certain rulings issued by Russian courts under Article 248 of the Russian Arbitration Procedure Code. These Russian rulings, known as anti-suit injunctions, force opposing parties to conduct legal proceedings exclusively within Russia. The EU's response is to prohibit the recognition or enforcement of such rulings within its member states. This measure aims to protect European companies from being unfairly penalized, often with hefty financial consequences, by preventing these rulings from taking effect in Europe.

To support EU companies in withdrawing from the Russian market, the Council has extended the deadlines for several exceptions related to divestment from Russia, including in Article 5aa(3)(d) and (3a) and Article 11(4) of Regulation No. 833/2014 until 31 December 2025. These extensions are crucial in order to enable an orderly and efficient exit from Russian engagements.

Aside from targeting Russia, the Council has simultaneously imposed new sanctions on Belarus, adding restrictions on 26 individuals and two entities to the EU’s asset freeze list (Regulation 2024/3177). These measures focus on Belarusian judicial figures responsible for politically motivated sentences, heads of correctional institutions overseeing inhumane conditions, and business leaders benefitting from regime ties or from involvement in EU sanctions circumvention.

Separately, the EU agreed to impose asset freeze restrictions against 16 individuals and three entities linked to Russia’s hybrid threats, marking the first use of a framework targeting activities that undermine EU and its partners' stability through disinformation and other malicious actions that had been set up earlier in October. Sanctioned entities include a covert Russian military intelligence unit, a disinformation network active in Africa, and individuals involved in intelligence operations and spreading propaganda (Regulation 2024/3188).

C. Looking ahead: what’s yet to come

These measures likely wrap up an eventful year for EU sanctions, as the EU continues its efforts to exert pressure on Russia and its affiliates. Looking ahead, the new year already seems set for an eventful start. With Poland assuming the rotating presidency of the Council of the EU, we might see new initiatives and shifts in policy. Meanwhile, the Trump administration's return in January could impact international relations and trade, potentially influencing the EU's strategic decisions. Emerging issues, such as Syria's evolving situation or Georgia's decision to halt EU membership talks until 2028, may also prompt further adjustments in EU sanctions policies. As we turn the page on 2024, 2025 is poised to bring its own share of significant challenges and developments, with the international sanctions landscape growing ever more intricate and challenging.