BRUSSELS, June 23. /TASS/. After four months of deliberations, the European Union agreed on the 11th package of sanctions against the Russian Federation, which for the first time in the EU's history includes the principle of extraterritorial restrictions. This means that the EU has given itself the right to impose sanctions against third countries and their businesses that ignore sanctions against Russia. The major purpose of the new package, according to comments made on Friday by the European Commission (EC) and the EU Council, is to force European corporations and the rest of the world to comply with the previous ten packages.
Since the EU members were concerned that this could complicate the EU's relations with the rest of the world, the EC stated that sanctions against third countries will be imposed only as a last resort. Brussels aims to use them as a threat in negotiations with foreign governments to force them to comply with sanctions.
Preventing sanctions evasion
The EU has included in the 11th package of sanctions a mechanism to combat their circumvention, which will allow introducing restrictions against third countries. "New anti-circumvention tool: this will allow the EU to restrict the sale, supply, transfer or export of specified sanctioned goods and technology to certain third countries whose jurisdictions are considered to be at continued and particularly high risk of circumvention. This new ‘anti-circumvention’ tool will be an exceptional and last resort measure when other individual measures and outreach by the EU to concerned third countries have been insufficient to prevent circumvention," the statement said.
According to the commission, it "welcomes the Council's adoption of an 11th package of sanctions against Russia. This package will ensure that EU sanctions against Russia are even better enforced and implemented, based on the lessons learned from implementation over the past year."
Furthermore, the European Union extended "the transit prohibition for certain sensitive goods (e.g. advanced technology, aviation-related materials) exported from the EU to third countries, via Russia. This will also reduce the risk of circumvention"
Individuals and companies
"Over 100 additional individuals and entities subject to asset freezes. This includes senior military officials, decision makers on the war, persons involved in the illegal deportation of Ukrainian children to Russia, judges who took politically motivated decisions against Ukrainian citizens, persons responsible for the looting of cultural heritage, businesspersons, propagandists, as well as Russian IT companies providing critical technology and software to the Russian intelligence, banks operating in the occupied territories and entities working with the Russian armed forces," the statement said.
Foreign companies
"Addition of 87 new entities to the list of those directly supporting Russia's military and industrial complex in its war of aggression against Ukraine. They are subject to tighter export restrictions for dual-use and advanced technology items," the European Commission said.
According to the statement, in addition to the already listed Russian and Iranian entities, the list now also covers entities registered in China, Uzbekistan, the United Arab Emirates, Syria, and Armenia.
Restrictions on media
The European Union also imposed sanctions against Russian TV channels and online publications Tsargrad, RT Balkan, Oriental Review, New Eastern Outlook and Katehon. "The Council extended the suspension of broadcasting licences to five additional media outlets: RT Balkan, Oriental Review, Tsargrad, New Eastern Outlook and Katehon," the document said.
According to the statement, these media are "under the permanent direct or indirect control of the leadership of the Russian Federation and have been used by latter for its continuous and concerted propaganda actions targeted at the civil society in the EU and neighboring countries."
Trade restrictions
The European Commission has also increased a number of previously imposed trade restrictions on Russia, both on exports and imports.
In particular, the EU imposed a ban on the supply to Russia of new and used cars with an engine capacity of more than 1.9 liters, as well as electric vehicles and hybrids. Thus, the EU introduced "Extension of the ban on export of luxury cars to all new and second-hand cars above a certain engine size (>1,900 cubic cm), and all electric and hybrid vehicles."
The European Union also banned within the framework of the 11th package of sanctions against Russia imports of steel and iron from any country if Russian resources were used for their production. The package includes "Tightening restrictions on imports of iron and steel goods by requiring importers of sanctioned iron and steel goods that have been processed in a third country to prove that the inputs used do not come from Russia."
"A full ban on trucks with Russian trailers and semi-trailers from transporting goods to the EU. This will clamp down on the circumvention of the prohibition for Russian freight road operator to carry goods in the EU," the EU statement said.
Electronics and technology
The new sanctions also prohibit the export of electrical components, semiconductors, optical components, navigation equipment, and a variety of metals to the Russian Federation. "The EU's sanctions have limited Moscow's political and economic options considerably, by causing major financial strain, degrading Russia's industrial and technological capacity," the statement said.
The list has been expanded to include electronic components, semiconductor materials, equipment for manufacturing and testing electronic integrated circuits and printed circuit boards, optical components, navigational instruments, metals used in the defense sector, and maritime equipment.
Druzhba oil pipeline
The European Union completely banned the supply of Russian oil via the northern branch of the Druzhba oil pipeline to Germany and Poland. However, raw materials from third countries are still allowed to be delivered by this route.
"The temporary derogation granted to Germany and Poland for the supply of crude oil from Russia through the northern section of the Druzhba oil pipeline will end. However, the oil which originates in Kazakhstan or another third country will be able to continue to transit through Russia and imported into the EU via the Druzhba oil pipeline," the statement said.
The northern branch of Druzhba, which stretches to Poland and Germany, is not currently used by these countries for the supply of Russian oil. It is used for the transit of oil from Kazakhstan to the German and Polish territories.
Exemptions for Caspian Pipeline Consortium
At the same time, the European Union has introduced a number of exemptions from export bans to ensure maintenance of the Caspian Pipeline Consortium's pipeline, as well as extending exemptions for Japan, which buys Sakhalin oil. "Insertions of strict and very targeted derogations to the existing export bans to enable the maintenance of the CPC (Caspian Pipeline Consortium) pipeline which transports Kazakh oil to the EU through Russia," the statement said.
The EU also extended the exception to the oil price cap for Sakhalin oil for Japan (until 31 March 2024).
In December, the countries of the Group of Seven (G7), the EU and Australia introduced a cap on the price of Russian oil supplied by sea at the level of $60 per barrel for their subordinate vessels and territories.