16th EU package of economic and individual measures against Russia.

Sanctions tighten on Russia’s shadow fleet and illegal oil trade

This 16^th sanctions package has a few key objectives, the first of which is tackling Russia’s so called ‘shadow fleet’ and those who support it. This fleet consists of hundreds of old oil tankers used to circumvent measures and transport oil illegally. It provides a significant source of revenue for Russia and poses a threat for both the environment and maritime safety. To avoid this the EU Council has added both ships and individuals that own or operate the fleet to the sanction list.

EU tightens export controls in 16th sanctions package, targeting military-use tech and dual-use goods

The Council has also tightened export restrictions, adding 53 new entities, including companies from third countries such as India, China, Hongkong and Turkey to the list of those subject to stricter controls. These restrictions apply to dual-use goods and technologies that could enhance Russia’s defence and security sector.

The list of restricted items has also been expanded, with a particular focus on materials used in the development and production of military systems. Notably, this includes video game controllers, which have been repurposed to control Unmanned Aerial Vehicles (UAVs), commonly known as drones. Other newly restricted goods include:

• Chemical precursors
• Software for computer numerical control (CNC) machines
• Software for oil and gas exploration
• Chromium compounds
• A selection of plastics, rubber and chemical substances
• Primary aluminium

Russian sanctions expanded: Stricter financial, media and transport bans

Beyond transport and trade, the package includes several other sanctions:

• A transaction ban on institutions outside of Russia using the Russian Central Bank’s System for Transfer of Financial Messages (SPFS), which had been exploited to bypass previous sanctions (It is forbidden to make direct or indirect transactions with entities mentioned on the list attached to the directive)
• A broadcasting ban on certain media outlets
• Restrictions on the use of specific Russian ports, locks, and airports
• A broader EU flight ban and stricter prohibitions on road transport
• A ban on the provision of construction services, including civil engineering works

Due diligence rules to prevent sanctions evasion via third countries

EU operators face yet another important requirement. They have to implement due diligence mechanisms when selling sensitive goods to third countries. These mechanisms must be capable of identifying and assessing risks of re-exportation to Russia. Operators have to make sure that legal persons, entities and bodies established outside the EU that they own, or control also stick to this rule.

EU sanctions expanded to Belarus and Russian-occupied Ukrainian territories

In addition to trade-related sanctions on Russia, the EU has introduced further restrictions on Belarus. These are similar to most of the trade-related sanctions posed against Russia. Additional measures also target Crimea, Sevastopol, and non-government-controlled areas of Ukraine, aiming to prevent their further integration into the Russian Federation.

Ensuring compliance: How we help you navigate the latest sanctions

The 16th EU sanctions package introduces new layers of complexity for businesses engaged in international trade. With tightened restrictions on exports, financial transactions, and transport, companies must be proactive in ensuring compliance to avoid penalties and disruptions.

Our specialists can guide you through the latest due diligence requirements, ensuring your exports align with EU regulations and do not inadvertently contribute to sanctions violations. Whether you need assistance with restricted goods classification, third-country trade compliance, or adapting supply chain processes, we are here to safeguard your operations. Reach out to our team to ensure your business remains secure and compliant under the latest EU sanctions.