EU imposes “No Russia Clause” from 20 March 2024.

Preventing re-export via third countries

The "No Russia Clause", introduced under Article 12g of Regulation (EU) 833/2014 as part of the EU's 12th sanctions package Regulation (EU) 2023/2878 in December 2023, is designed to prevent the flow of certain sensitive goods to Russia via third countries. This clause requires EU exporters to contractually prohibit their customers in non-EU countries from re-exporting these goods to Russia or for use in Russia.

Affected goods and contract requirements

The "No Russia Clause" will apply to the following categories of goods:

• Dual-use goods
• Advanced technology items used in Russian military systems found on the battlefield in Ukraine, or critical to their development, production, or use
• Aviation goods and weapons

Starting March 20, 2024, all contracts for the sale of these goods to third countries must include a clause prohibiting the resale of the goods to Russia. Contracts concluded before December 19, 2023, will have a grace period until December 20, 2024, or their expiry date, whichever comes first.

Enforcement and exemptions

To ensure compliance, the contractual partner must face appropriate remedial measures in case of a breach. EU exporters are required to inform the Member State authority where they are established as soon as they become aware of any such breaches.

Partner countries listed in in Regulation (EU) 833/2014 as per Annex VIII, are exempt from these requirements as they are considered to have effective sanction enforcement regimes already established.

Advice and support

Need help regarding Russian sanctions? Our Consultancy & Advisory services can help align your business operations with regulatory compliance. Please contact advisors.nl@gaston-schul.com for advice and support.

Sanctions overview

A full overview and timeline of all sanctions imposed against Russia by the European Union can be found on the European Council's sanctions page.