Ukraine-related Sanctions: EU Strengthens Sectoral Sanctions against Russian Economic Interests, and Lists Additional Sanctioned Persons

On September 12, 2014, the EU strengthened its “Level 3” sectoral sanctions targeting Russian economic interests. The additional sanctions are set out in Council Decision 2014/659/CFSP (“Decision 2014/659”) and Council Regulation (EU) No 960/2014 (“Regulation 960/2014”) which amend Council Decision 2014/512/CFSP (“Decision 2014/512”) and Council Regulation (EU) No 833/2014 (“Regulation 833/2014”), previously adopted on July 31, 2014.

The new restrictive measures notably tighten financial restrictions on the five Russian banks and development banks already sanctioned and expand these restrictions to three defense and three energy companies. In addition, the scope of the export controls has been broadened, including by prohibiting the provision of certain services necessary for deep water and Arctic oil exploration and production, and shale oil projects in Russia. The new measures also clarify and expand preexisting measures through amendments of the definition of terms used in the Regulation. Finally, 24 persons were added to the list of individuals subject to an asset freeze and travel bans, including members of the new leadership in the Donbass region of Ukraine. Please see below for full alert memo.

Please feel free to raise any concerns you may have with any of your regular contacts at the Firm, or with Till Müller-Ibold in our Brussels office or Sunil Gadhia in our London office regarding European sanctions or Paul Marquardt in our Washington office regarding US sanctions.