Here’s a breakdown of Council Regulation (EU) 2025/1494, amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine:
**1. Essence of the Act:**
This regulation further amends the existing sanctions regime against Russia in response to its actions in Ukraine. It broadens the scope of existing restrictions, introduces new prohibitions, and clarifies certain provisions to enhance the effectiveness of the measures and address circumvention. The changes target various sectors, including military, industrial, energy, and financial, with the aim of weakening Russia’s ability to continue its war of aggression.
**2. Structure and Main Provisions:**
The regulation amends Council Regulation (EU) No 833/2014 by modifying existing articles and adding new ones. Key changes include:
* **Expansion of Export Restrictions:** Adds more entities to the list of those supporting Russia’s military-industrial complex, including some in third countries, and expands the list of goods that could contribute to Russia’s military and technological advancement.
* **Indirect Export Control:** Introduces an optional mechanism for Member States to require prior authorization for exports of certain goods to third countries if there’s a credible risk of them being diverted to Russia.
* **Restrictions on Goods Enhancing Russian Industrial Capacities:** Imposes further export restrictions on goods like machinery, chemicals, metals, and plastics.
* **Transit Prohibition:** Expands the list of goods subject to the prohibition on transit through Russian territory.
* **End of Czechia’s Derogation:** Removes the temporary exemption for Czechia regarding the supply of crude oil by pipeline from Russia.
* **Prohibition on Russian Oil Products:** Prohibits the purchase, import, or transfer of petroleum products obtained in a third country from Russian crude oil, with exceptions for imports from partner countries with equivalent sanctions.
* **LNG Import Restrictions:** Restricts the import of Russian LNG through EU terminals not connected to the interconnected natural gas system, with a derogation for certain Member States.
* **Clarification and Expansion of Transaction Bans:** Clarifies the scope of the transaction ban, particularly concerning EU subsidiaries of sanctioned Russian companies, and expands the ban to include entities using Russia’s System for Transfer of Financial Messages (SPFS) and those frustrating the purpose of existing sanctions.
* **Exemptions to Transaction Bans:** Introduces exemptions for certain ports regarding Kazakh coal, airports regarding civil nuclear capabilities, and transactions necessary for divestment from Russia.
* **Nord Stream Pipeline Restrictions:** Prohibits transactions related to the Nord Stream and Nord Stream 2 pipelines to prevent future gas supplies.
* **Restrictions on Russian Direct Investment Fund (RDIF):** Imposes a transaction ban targeting the RDIF, its subsidiaries, significant investments, and those providing them with financial services.
* **Vessel Restrictions:** Adds more vessels to the list of those banned from EU ports and locks.
* **Software Restrictions:** Prohibits the provision of software with certain uses in the banking and financial sector to Russia.
* **No Claims Clause:** Reinforces the non-recognition of investor-state dispute settlements related to sanctions.
* **Price Cap Mechanism:** Introduces a dynamic automatic procedure to modify the price cap for Russian crude oil, aiming to reduce Russia’s oil revenues.
**3. Main Provisions for Practical Use:**
* **Indirect Export Control (Article 2a):** Exporters need to be aware of the potential for increased scrutiny and the possibility of needing authorization for exports to third countries if there’s a risk of diversion to Russia.
* **Prohibition on Russian Oil Products (Article 3ma):** Importers need to provide evidence of the origin of crude oil used in refining petroleum products to ensure compliance.
* **Transaction Bans (Articles 5aa, 5ac, 5ad, 5af, 5ag, 5h):** Businesses need to conduct thorough due diligence to avoid transactions with sanctioned entities or those circumventing sanctions, including those using the SPFS system or linked to the RDIF.
* **Price Cap Mechanism (Article 3n):** Stakeholders involved in the maritime transport of Russian crude oil need to stay informed about the regularly updated price cap and ensure contracts comply with the applicable limits.
* **Vessel Restrictions (Annex XLII):** Port authorities and maritime service providers need to be aware of the updated list of vessels banned from EU ports.
* **Software Restrictions (Article 5n):** Companies providing software to the banking and financial sector need to ensure compliance with the new restrictions.
* **No Claims Clause (Article 11):** Legal professionals and businesses need to be aware of the EU’s position on investor-state dispute settlements related to sanctions.
