- Council Regulation (EU) 2025/390 of 24 February 2025 amending Regulation (EU) No 269/2014 (“Regulation No 390” and “Regulation No 269,” respectively).
- Council Regulation (EU) 2025/395 of 24 February 2025 amending Regulation (EU) No 833/2014 (“Regulation No 395” and “Regulation No 833,” respectively).
- Council Regulation (EU) 2025/398 of 24 February 2025 amending Regulation (EU) No 2022/263 (“Regulation No 398” and “Regulation No 263,” respectively); and
- Council Regulation (EU) 2025/401 of 24 February 2025 amending Regulation (EU) No 692/2014 (“Regulation No 401” and “Regulation No 692,” respectively).
New grounds for imposing asset freezing sanctions
Regulation No 390 introduces new grounds for imposing EU asset freezing sanctions against Russian persons.Natural or legal persons, entities or bodies may now fall under asset freezing sanctions, if, according to the EU, they:
- own, control, manage or operate vessels that transport crude oil or petroleum products, originating in Russia or exported from Russia, while practicing irregular and high-risk shipping practices as set out in the International Maritime Organisation General Assembly resolution A.1192(33) (footnote 1 This resolution concerns the “shadow fleet” and lists the following irregular and high-risk shipping practices involved in illegal operations to circumvent sanctions:
- Carrying out unsafe operations which do not adhere to international regulations and well-established and strict industry standards and best practices;
- Intentionally avoiding flag State and port State control inspections;
- Not maintaining adequate liability insurance or other financial security;
(continued in footnote 2)
- Intentionally avoiding commercial screenings or inspections;
- Not operating under a transparent corporate governance policy that assures the welfare and safety of those on board and the protection of the marine environment; or
- Intentionally taking measures to avoid ship detection such as switching off their Automatic Identification System (AIS) or Long-Range Identification and Tracking (LRIT) transmissions or concealing the ship’s actual identity when there is no legitimate safety or security concern sufficient to justify such action.
- form part of, support, materially or financially, or benefit from Russia’s military and industrial complex, including by being involved in the development, production or supply of military technology and equipment.
As a reminder, EU asset freezing sanctions have the following consequences:
- EU Persons The EU sanctions measures are binding:
- within the EU territory;
- on EU nationals regardless of their location;
- on EU-registered legal entities and their branches and representative offices;
- on any persons within the EU territory, regardless of their nationality; and
- on board any aircraft or vessel under the jurisdiction of a Member State
- EU Persons are prohibited from directly or indirectly making available funds and economic resources to or for the benefit of sanctioned persons.
Expanding the list of asset freezing sanctions
The EU has expanded the list of persons to whom restrictive measures under Regulation No 269 apply. The updated list includes 35 legal entities and 48 individuals, mostly operating in the military-industrial and maritime sectors of the Russian economy, as well as crypto assets, among others:- JSC Morion;
- Joint Stock Company Scientific Production Association Orion;
- Joint Stock Company Northern Production Association Arktika;
- LLC Southern Fleet;
- JSC Black Sea Bank for Development & Reconstruction;
- Garantex cryptocurrency exchange;
- V.P. Yevtushenkov — founder of PJSC AFK Sistema;
- A.A. Avdolyan — owner of A-Property and Elgacoal;
- I.V. Zyuzin — majority shareholder and Chairman of the Board of Directors of PJSC Mechel; and
- S.G. Dregval — General Director and Chairman of the Management Board of PJSC Inter RAO.
The list of asset freezing sanctions also included 74 ships that are part of Russia’s so-called “shadow fleet.”
It is worth noting that the EU continues to impose so-called “secondary sanctions” on individuals who facilitate violations of the prohibition on circumventing sanctions restrictions.
For example, the sanctions list included JSC Promtech, which, according to the EU Council, imports sanctioned goods into Russia, as well as its founder (A.V. Shadrin) and General Director (V.V. Shadrin). In addition, EU asset freezing sanctions were imposed on the Turkish company Enutek Makina Sanayi Ve Ticaret, through which JSC Promtech imported goods.
Disconnecting from the SWIFT system
The EU has expanded the list of persons prohibited from providing specialised services for the exchange of financial messages (“SWIFT”). Therefore, as at 17 March 2025, the following will be disconnected from SWIFT:- PJSC Ak Bars Bank;
- PJSC “BANK URALSIB”;
- JSC Tochka;
- JSC National Reserve Bank;
- JSC Roseximbank;
- JSC Bank Sinara;
- JSC Primsotsbank;
- JSC BBR Bank;
- LLC Non-Banking Credit Institution Payment Constructor;
- LLC Petersburg Payment Centre;
- JSC Kuznetsbusinessbank;
- JSC Mir Business Bank; and
- JSC Kuban Credit.
Sanctions against foreign banks using the SPFS
We remind you that the 14th sanctions package prohibited EU Persons from:- connecting to the System for the Transfer of Financial Messages (“SPFS”) or other similar systems developed by the Bank of Russia as an alternative to SWIFT; and
- transacting with persons listed in Annex XLIV to Regulation No 833, which include persons established outside of Russia that use the SPFS or similar systems.
- OJSC Bank BelVEB;
- OJSC Belgazprombank; and
- the Shanghai Branch of VTB Bank (PJSC).
Restrictions on ports, locks and airports
The EU has prohibited EU Persons from directly or indirectly transacting with the following transportation sites:- ports and locks: Astrakhan, Makhachkala, Ust-Luga, Primorsk and Novorossiysk;
- airports: Begishevo, Vnukovo, Zhukovsky, Perm, Koltsovo and Pskov.
This list may subsequently be supplemented by other transportation sites, as the ground for inclusion is the performance of activities related to:
- transfer of unmanned aerial vehicles (UAVs) or missiles;
- transportation of goods and technology used in the defence and security sector;
- maritime transportation of crude oil or petroleum products that originate in Russia or are exported from Russia by vessels practicing irregular and high-risk shipping practices;
- transportation of other goods listed in Annexes XI, XX, XXI and XXIII to Regulation No 833; and
- facilitating or engaging in the violation or circumvention of sanctions restrictions.
Restrictions on hauliers
Under the 14th sanctions package, the EU prohibited granting the status of a road transport undertaking engaged in the transportation of goods within the EU to companies in which Russian persons hold 25% or more.This restriction has been expanded to prohibit changes in the share capital of companies that were registered before 8 April 2022 and granted road transport undertaking status so that the shareholding of Russian persons in them is 25% or more.
In addition, the ban on landing, takeoff and overflight over EU territory has been expanded. Previously, this restriction applied only to Russian air carriers, Russian-registered aircraft, and foreign aircraft owned or controlled by Russian persons. Now the ban covers any air carriers operating domestic flights in Russia, as well as persons selling aircraft, related goods and technology for such flights. The list of such persons will be included in Annex XLVI to Regulation No 833, which, as at the date of this publication, has not yet been finalised.
Control of sanctions compliance by subsidiaries
Regulation No 269 has been supplemented by a new Article 15a requiring EU Persons to undertake their best efforts to ensure that any legal person, entity or body established outside the EU that they own or control does not participate in activities that undermine the EU asset freezing sanctions.The preamble to Regulation No 390 emphasises that EU sanctions remain limited to the EU’s territorial and personal jurisdiction. However, if EU Persons actually exert decisive influence over the conduct of entities established outside the EU, they may incur responsibility for their actions that violate restrictive measures.
In this case, “best efforts” may include, inter alia, implementing appropriate control policies and procedures to mitigate and manage risk effectively, considering factors such as the country of establishment, business sector and type of activity of the EU Person’s subsidiary.
Please note that this rule is not new and was first introduced earlier under Regulation No 833, providing for similar obligations for EU Persons to combat violations of the provisions of that regulation.
Ban on temporary storage of oil in EU ports
The EU has introduced a ban on the temporary storage or placement under the free zone procedure of crude oil or petroleum products if they originate in or are exported from Russia.The ban does not apply to:
- goods that are in the EU as at 25 February 2025 and before 26 May 2025;
- certain EU Member States that benefit from exemptions under Articles 3m(3(d)) and 3m(4) of Regulation No 833; and
- crude oil and petroleum products if they originate in a third country and are only being loaded in, departing from, or transiting through Russia and both the origin and the owner are non-Russian.
Expanding the list of prohibited services
The ban on the provision of certain services to Russian persons previously established by Article 5n of Regulation No 833 has been extended to include a new category, which is construction services, including civil engineering works.We expect that in the near future the European Commission will issue clarifications specifying which services fall under this category.
Expanding restrictions on imports and exports of goods
The EU continues to expand the list of goods subject to import and export restrictions.In particular, the list of prohibited goods includes:
- export to Russia: dual-use goods such as chemical precursors, software related to computer numerical control (CNC) machines, chromium ores and compounds etc.;
- import from Russia: primary aluminiumHowever, the ban does not apply to the import, purchase or transport of primary aluminium, or to the provision of related technical or financial assistance, if necessary for (1) the import into the EU of 275,000 metric tonnes of primary aluminium between 25 February 2025 and 26 February 2026 and (2) the performance between 26 February 2026 and 31 December 2026 of contracts entered into prior to 25 February 2025, provided that total imports during that period do not exceed 50,000 metric tonnes..
New indemnification rules
Under the 14th sanctions package, EU Persons were granted the right to recover from competent courts of EU Member States any damages (including legal costs) incurred by those persons as a consequence of claims lodged with courts in third countries in connection with any contract or transaction the performance of which has been affected by the sanctions measures, provided that the EU Persons do not have access to effective access to the remedies in the relevant foreign jurisdiction.This provision has been extended to allow EU Persons to recover damages not only from the persons who directly lodged claims against them in third country courts, but also from persons who own or control such persons.
However, even if the court of an EU Member State does not have jurisdiction to hear such a case, it may hear it on an exceptional basis, provided that the case has a sufficient connection with the Member State in which the court is located (eg the claimant is domiciled or registered there under the law of that Member State).
