Marking Three Years of Russian Invasion of Ukraine, the EU Adopts 16th Sanctions Package Against Russia, and Expands Sanctions Against Belarus and Occupied Ukrainian Territories
13 March 2025 – On 24 February 2025, exactly three years after Russia began its full-scale invasion of Ukraine, the Council of the European Union (EU) adopted a far-reaching 16th package of individual and sectoral economic sanctions seeking to curtail Russia’s war against Ukraine. The 16th package and additional sanctions packages adopted that day include changes to the sanctions programs covering (i) Russia, (ii) Belarus, (iii) Crimea and Sevastopol (Crimea), as well as (iv) the non-government-controlled areas of Donetsk, Kherson, Luhansk and Zaporizhzhia oblasts (Oblasts). The three latter have now been amended to include provisions that largely mirror those contained in the Russia program. The European Commission also updated its FAQs on the Ukraine-related sanctions programs. These developments come at a critical moment for the EU and its allies, as it reaffirms its commitment to support Ukraine’s defense and territorial integrity, at a juncture when the Trump administration has cast doubt upon its support for Ukraine.
I. Key Features
Broad scope of 16th EU sanctions package against Russia: this new package targets vital sectors of the Russian economy such as energy, trade, transport, infrastructure and financial services and seeks to further tackle sanctions circumvention. In particular, it includes:
A significant number of new designations (48 individuals and 35 entities) and adoption of new designation criteria;
Extension of the obligation to implement a compliance program to cover new items;
A new import ban on aluminum, tightening of export restrictions on dual-use and advanced technology items, and additional export bans on industrial goods;
A new prohibition on the provision of temporary storage for Russian crude oil and petroleum products within the EU, a new prohibition to provide goods, technology and services for the completion of crude oil projects, and a new export ban for oil and gas exploration);
A new ban on listed non-EU airlines operating domestic flights in Russia, and a tightening of the road transport prohibition;
A new ban on construction services
Eight additional Russian media outlets subject to a broadcasting ban
Thirteen additional banks subject to the SWIFT ban and the first three banks subject to the SPFS transaction ban;
Continued focus on circumvention through the adoption of new anti-circumvention measures (e.g., listing of 74 additional vessels that form part of the shadow fleet, new transaction ban for non-EU banks and crypto-asset services providers that participate in the circumvention of certain EU sanctions, new transaction ban on specific Russian ports and airports) and measures protecting EU operators.
Additions to the Belarus sanctions program largely mirror the Russia sanctions: to prevent sanctions evasion through Belarus, key provisions of the 16th sanctions package described above were mirrored in the Belarus sanctions program.
Major amendments to the sanctions programs targeting Crimea and the Oblasts. The new enhanced sanctions targeting these regions largely align with those adopted against Russia and Belarus and include in particular:
New compliance requirements and enforcement guidelines (e.g., “best efforts obligation, new definition of the sanctions circumvention, extension of the “No-Claim” provision, clarification on the “No-Liability” clause, measures protecting EU operators);
Wider export restrictions on EU-denominated banknotes and certain high-risk goods and technology;
Extension of the ban on the provision of certain services and software.
II. Important Takeaways for EU Operators
EU operators should exercise caution when engaging with, or reconsider their relationships with, certain third parties to ensure that they are not newly designated or subject to transaction bans.
They should verify that their goods and services are not subject to new restrictions, including through due diligence which is now required for some additional items.
Importantly, operators should be aware of the expansion of the scope of EU sanctions, notably with the inclusion of “best efforts” obligation in all sanctions programs covering Russia, Belarus, Crimea and the Oblasts, and the tightening of exemptions and derogations.
III. Adoption of 16th Comprehensive Sanctions Package Against Russia and Broad Alignment with Sanctions Against Belarus
The new EU sanctions against Russia were implemented through Regulation 2025/395 (amending Regulation 833/2014), Regulation 2025/390 and Implementing Regulation 2025/389 (amending Regulation 269/2014). The sanctions against Belarus were implemented through Regulation 2025/392 (amending Regulation 765/2006).
The new restrictive measures adopted against Belarus largely mirror the sanctions adopted as part of the 16th sanctions package against Russia and are therefore presented together hereunder.
1. Individual Restrictive Measures
a. Extension of the ‘Best Efforts’ Obligation to Cover Individual Sanctions
The “best efforts” obligation (previously included only in Regulation 833/2014 providing for sectoral sanctions against Russia and Regulation 765/2006 against Belarus) was included in Regulation 269/2014. EU operators are now required to undertake their best efforts to ensure that any entity established outside the EU that they own or control does not participate in activities that undermine the restrictive measures provided for in Regulation 269/2014 (i.e., asset freeze and prohibition to make funds available). For more information on the “best efforts” obligation, please see our previous alert.
b. New Designations Under the Russia Sanctions Program
The EU added 48 individuals and 35 entities, including those with nationalities or based in third countries (e.g., North Korea, China, Belarus and Turkey), to its restricted parties list.
The newly listed persons are considered as supporting the Russian military complex, active in Russian crypto assets exchanges, the maritime sector or sanctions circumvention. They are subject to an asset freeze, a prohibition to make funds available to them and for physical persons, also subject to travel bans.
c. New Designation Criteria Under Russia and Belarus Sanctions Programs
The EU broadened the listing criteria that can be used to add individuals and entities to its restricted parties list. The EU can now designate individuals or entities that:
Under the Russia sanctions program:
Own, control, manage or operate vessels transporting Russian crude oil or petroleum products while practicing irregular and high-risk shipping practices, or otherwise provide support to the operations of such vessels;
Form part of, support materially or financially, or benefit from Russia’s military and industrial complex; or
Are associated with the above-mentioned individuals and entities.
Under the Belarus sanctions program:
Form part of, support materially or financially, or benefit from Belarus’ military and industrial complex; or
Are associated with the above-mentioned individuals and entities.
d. New and Amended Derogations
i. Russia Sanctions Program
New derogation for Budapest metro line cars –The national competent authorities (NCAs) may now authorize payments to JSC ‘V.V. Tikhomirov Scientific Research Institute of Instrument Engineering’ for goods and services that can only be provided by that entity and that are necessary for Budapest metro line 3 cars delivered by Metrowagonmash in 2018.
Extension of three existing derogations – The EU extended the scope of three existing derogations for:
The sale and transfer by 30 June 2025 of proprietary rights owned by certain designated individuals in EU entities to cover the following Russian businessmen and their relatives: Alexander Pumpyansky, Andrey Melnichenko and Viktor Rashnikov.
The funds frozen because of the involvement of a designated intermediary bank to cover transfers of the funds to the EU from Russia, a third country or the EU involving an intermediary bank that is designated or owned or controlled by a designated entity.
For payments frozen because of certain transfer initiated through or from a designated entity to cover those frozen because of a transfer to the EU from Russia, a third country or the EU, initiated through or from a designated entity or an entity owned or controlled by the designated entity.
ii. Belarus Sanctions Program
New derogation for funds frozen because of the involvement of an intermediary bank subject to the asset freeze – NCAs may now authorize the release of certain funds frozen because of the involvement of a designated entity, or an entity owned or controlled by the designated entity, acting as intermediary bank during a transfer of those funds to the EU from Belarus, a third country or the EU if such transfer is:
Between two non-designated persons;
Carried out using accounts at non-listed credit institutions; and
Not in breach of the prohibition to make funds available to designated persons or to circumvent sanctions.
New derogation for funds frozen because of a transfer initiated through or from entities subject to the asset freeze – NCAs may now authorize the release of a payment frozen as a result of a transfer to the EU from Belarus, a third country or the EU, initiated through or from a designated entity or an entity owned or controlled by the latter if:
Such transfer is between two non-designated persons;
The beneficiaries of the transfer are nationals or residents of a Member State, of a country member of the European Economic Area (EEA) or of Switzerland; and
Not in breach of the prohibition to make funds available to designated persons or to circumvent sanctions;
Note that these new derogations do not apply to frozen funds or economic resources held by central securities depositories.
2. Compliance Requirements
Extension of the obligation to implement a risk-based compliance program to new items – As of 26 May 2025, EU operators, including non-EU entities they own or control, who sell, supply, transfer or export goods falling under CN codes 8502 20 and 8536 50 (i.e., which are found in Iranian and Chinese drones used by Russia) listed in Annex XLVIII of Regulation 833/2014 and Annex XXXI of Regulation 765/2006 are now also required to implement a risk-based compliance program.
Note that previously this obligation only applied to common high priority (CHP) items (Annex XL of Regulation 833/2014 and Annex XXX of Regulation 765/2006).
3. Trade Sanctions
a. Dual-Use (Annex I of Regulation 2021/821) and Advanced Technology Items (Annex VII of Regulation 833/2014 and Annex Va to Regulation 765/2006)
Extension of the list of advanced technology items subject to export-related restrictions under Russia and Belarus sanctions programs to include (i) chemical precursors used to produce chloropicrin and other riot control agents (X.A.VIII.021(h)), (ii) software related to computer numerical control machine tools (X.D.X.007), (iii) controllers used to guide unmanned aerial vehicles (X.A.III.101 (i)), as well as (iv) chromium ore and compounds (CN codes 2610 00, 2819 10, 2819 90, 8112 21, 8112 22, and 8112 29).
Reinforcement of the restrictions on entities subject to enhanced restrictions
New restrictions (under Russia and Belarus sanctions programs) – It is now expressly prohibited to (i) sell, supply, transfer or export dual-use and advanced technology items, (ii) provide related technical and financial assistance or other services, or (iii) sell, license or transfer related intellectual property (IP) rights or trade secrets to any entities listed in Annex IV of Regulation 833/2014 or Annex V of Regulation 765/2006.
Note that the existing derogations for the listed entities remain available.
Extension of the list of entities listed in Annex IV of Regulation 833/2024 (under Russia sanctions program) to cover an additional 53 entities, among which 34 are located in countries other than Russia (i.e., China, Hong Kong, India, Kazakhstan, Singapore, Turkey, the United Arab Emirates and Uzbekistan).
Tightening of exemptions and derogations (under Russia and Belarus sanctions programs)
Limitation of exemptions – Exemptions from the prohibition on the sale, supply, transfer and export of dual-use or advanced technology items; the related provision of technical or financial assistance; or their transit via Russia are now limited to goods intended for:
Humanitarian purposes, health emergencies, the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters; or
Medical or pharmaceutical purposes (except for the CHP items (Annex XL of Regulation 833/2014 or Annex XXX of Regulation 765/2006)).
Reporting obligation – EU exporters are required to declare that the goods are being exported under these exemptions and notify their NCA.
Conversion of certain exemptions into derogations – A prior authorization from NCAs is now required for the sale, supply, transfer or export of dual-use items and advanced technology items or for the provision of related technical or financial assistance intended for:
Software updates;
Use as consumer communication devices; or
Medical or pharmaceutical purposes for CHP items (listed in Annex XL of Regulation 833/2014 or in Annex XXX of Regulation 765/2006) (this derogation is also available for the transit of these goods).
Removal of the derogation allowing the sale, supply, transfer or export of dual-use and advanced technology items, as well as the provision of related technical and financial assistance intended for cooperation between the EU, the governments of Member States, and the government of Russia or Belarus in purely civilian matters.
Tightening the prohibition for NCAs to authorize transactions related to aviation or the space industry – NCAs are now prohibited from authorizing transactions related to aviation or the space industry even when the goods are intended for intergovernmental cooperation in space programs (previously allowed).
b. Goods Which Generate Significant Revenues for Russia (Annex XXI of Regulation 833/2014) and Goods Which Allow Belarus to Diversify its Sources of Revenue (Annex XXVII of Regulation 765/2006)
New import ban on primary aluminum (under Russia and Belarus sanctions program) – Extension of the lists of goods which generate significant revenues for Russia and those which allow Belarus to diversify its sources of revenue subject to import-related restrictions to cover unwrought aluminum (CN code 7601).
Temporary exemptions:
Under Russia sanctions program, for:
The import into the EU of 275,000 metric tons of such goods until 26 February 2026;
The performance from 26 February 2026 until 31 December 2026 of contracts concluded before 25 February 2025, for a total volume of imports into the EU during that period not exceeding 50,000 metric tons of such goods.
Under the Belarus sanctions program, for the performance until 26 May 2025 of contracts concluded before 25 February 2025.
Extension of the derogation related to Budapest metro line to cover additional goods (under the Russia sanctions program) – NCAs may now authorize the purchase, import or transfer of goods falling under CN codes 7019, 8415, 8483, 8518, and 8539 or the provision of related technical and financial assistance necessary for Budapest metro line 3 cars delivered in 2018 by Metrowagonmash.
New derogation related to the Druzhba pipeline (under the Russia sanctions program) – NCAs may now authorize the import of goods falling under CN codes 9026, 9027 and 9031, as well as the provision of related technical and financial assistance for the purposes of maintenance, repair or the periodic certification of primary and secondary crude oil measuring points on the Druzhba pipeline into the EU provided that these goods are:
Strictly necessary for the provision of services to ensure uninterrupted supplies of crude oil through this pipeline from Russia, and
Will be exported for a period necessary for the purposes of maintenance, repair or the periodic certification of this pipeline.
c. Goods Which Could Contribute to the Enhancement of Russian or Belorussian Industrial Capacities
Extension of the list of goods which might contribute to the enhancement of Russian (Annex XXIII of Regulation 833/2014) or Belarusian (Annex XVIII of Regulation 765/2006) industrial capacities subject to export-related restrictions to cover some additional goods, such as
For the Russia sanctions program: Chemicals, some plastics and rubber;
For the Belarus sanctions program: Chemical elements, pyrotechnic articles and combustible materials.
Extension of the list of goods which might contribute to the enhancement of Russian (Annex XXXVII of Regulation 833/2014) or Belarusian (Annex XIX of Regulation 765/2006) industrial capacities subject to transit ban to cover some additional goods, such as:
For the Russia sanctions program: Goods with CN codes 3811 90, 3815 12, 7219 21, 7225 40, 7304 29, 7311 00, 8425 11, 8456 30, 8460, 8466 20, 8467 29, 8474 39, 8482 99, 8483 5, 8511 10, 8515 19, 8543 30, 8708 99, and 9024;
For the Belarus sanctions program: 3815 12, 7219 21, 7225 40, 7304 29, 7311 00, 8456 30, 8460, 8515 19, 8543 30, 8708 99, and 9024.
New temporary exemption for certain goods (under the Russia sanctions program) – The prohibition to sell, supply, transfer or export goods listed in Annex XXIIID of Regulation 833/2014, to provide the related technical and financial assistance, as well as to transfer the related IP rights shall not apply to the execution until 26 May 2025 of contracts concluded before 25 February 2025.
Extension of the existing derogations to cover additional goods (under the Russia sanctions program) – The derogation allowing NCAs to authorize the sale, supply, transfer or export of certain goods and the provision of related technical and financial assistance necessary for personal household use (CN code 7007 19 80) and production of food items (CN codes 2920 90 and 3920 62).
New derogations for certain goods
Under the Russia sanctions program, NCAs may now authorize:
The export to Russia of goods with CN codes 9026, 9027 and 9031, the importation of which had been authorized under the Druzhba pipeline derogation; and
The export and transfer to Russia of goods with CN codes 8517 62 and 8523 52 intended for civilian non-publicly available electronic communications networks which are not owned by an entity that is publicly controlled or with over 50% public ownership;
Under the Belarus sanctions program, NCAs may now authorize the sale, supply, transfer or export to Belarus of goods with CN codes 8517 62 and 8523 52, or the provision of related technical or financial assistance, for nonmilitary use and for a nonmilitary end user, intended for civilian non-publicly available electronic communications networks.
d. Machinery
Extension of the list of machinery subject to the transit ban via Belarus (Annex XIVa of Regulation 765/2006) to cover additional items with CN codes 8425 11, 8466 20, 8467 29, 8474 39, 8482 99, 8483 50, and 8511 10.
New derogation for certain machinery intended for civilian non-publicly available electronic communications networks – The NCAs may now authorize the sale, supply, transfer or export to Belarus of machinery with CN code 8471 80 or the provision of related technical or financial assistance, for nonmilitary use and for a nonmilitary end user, intended for civilian non-publicly available electronic communications networks.
e. Diamonds (Annex XXXVIIIA of Regulation 833/2014)
Postponement of the traceability-based certification requirement for certain diamonds – The entry into force of the requirement to provide traceability-based certification (which shall include a corresponding certificate certifying that the diamonds are not mined, processed or produced in Russia) was postponed to 1 January 2026 for diamonds with CN code 7102 39 00 (instead of 1 March 2025 previously).
Clarification of the obligation to submit rough diamonds for verification – The EU clarified that the import of Russian origin rough diamonds processed in third countries (CN codes 7102 31 00 and 7102 10 00) into the EU shall be accompanied with a certificate clearly stating the country(ies) of mining origin.
4. Energy Sector
a. Software Used in Oil and Gas Exploration (Annex II of Regulation 833/2014 and Annex XXXII of Regulation 765/2006)
New prohibition to export software used in oil and gas exploration – It is now prohibited to (i) sell, supply, transfer, export or provide this software, (ii) provide related technical or financial assistance or other services, as well as to (iii) sell, license or transfer related IP rights or trade secrets to any person, or for use, (i) in Russia or (ii) in Belarus.
Temporary exemption (under Russia and Belarus sanctions programs) – This prohibition does not apply to the sale, supply, transfer, export or provision of software that is necessary for the performance until 26 May 2025 of contracts concluded before 25 February 2025.
Derogations – NCAs may authorize the sale, supply, transfer or export and the provision of technical or financial assistance:
Necessary for ensuring critical energy supply within the EU (under Russia and Belarus sanctions programs); or
Intended for the exclusive use of entities owned, or solely or jointly controlled, by an EU entity (only under the Russia sanctions program).
b. Crude Oil and Petroleum Products (Annex XXV and Annex XXXI of Regulation 833/2014)
New prohibition of the temporary storage of crude oil or petroleum products (Annex XXV of Regulation 833/2014) – The temporary storage and the placement under the free zone procedure of crude oil or petroleum products in EU territory is now prohibited if the goods originate in Russia or are exported from Russia.
Exemptions – This prohibition shall not apply to:
Goods already in the EU on 25 February 2025 and can be stored until 26 May 2025;
Member States that benefit from the exemptions in Article 3m(3), point (d), and in Article 3m(4) of Regulation 833/2014;
Crude oil and petroleum products originated in a third country and being loaded in, departing from or transiting through Russia, provided that both the origin and the owner of those goods are non-Russian.
Extension of the prohibition to provide goods and services for the completion of liquefied natural gas (LNG) projects to cover crude oil projects in Russia – It is now also prohibited to sell, supply, transfer or export goods and to provide services to any person in Russia, as well as to provide related technical or financial assistance, when such goods and services are for the completion of crude oil projects in Russia.
Exemptions – This prohibition shall not apply:
For crude oil projects, to the performance until 26 May 2025 of contracts concluded before 25 February 2025; and
To oil production projects where regular commercial production was established prior to 25 February 2025.
New derogation for the sale, supply, transfer or export between Slovakia and Hungary of certain petroleum products (Annex XXXI of Regulation 833/2024) which are obtained from crude oil imported by pipeline from Russia and are intended for exclusive use in those two Member States.
c. LNG (CN code 2711 11 00)
New derogation for the import of LNG used to ensure energy supply – Where an LNG terminal is not connected to the interconnected natural gas system, NCAs may authorize the purchase, import or transfer of LNG originating in Russia or exported from Russia, provided that:
The LNG is purchased, imported or transferred from a terminal located in another Member State and such terminal is connected to the interconnected natural gas system; and
The purchase, import or transfer is used to ensure energy supply.
New exemption from the prohibition to provide reloading services for transshipment operations of LNG – The prohibition to provide reloading services in the territory of the EU for the purposes of transshipment operations of LNG originating in Russia or exported from Russia, as well as to provide related technical and financial assistance, does not apply to reloading services necessary for its transport between ports of the same Member State.
5. Mining and Quarrying Sector
Conversion of the existing exemption from the investment restrictions targeting mining and quarrying sector in Russia into a derogation – A prior authorization is now required from NCAs for mining and quarrying activities that yield their highest value from, or have as their primary objective, the production of any of the materials listed in Annex XXX of Regulation 833/2014 (previously exempted).
6. Transport Sector
a. Aviation (under the Russia sanctions program)
Extension of the flight ban to certain listed non-EU carriers operating domestic flights in Russia – The EU extends the flight ban to air carriers listed in Annex XLVI of Regulation 833/2014 (currently empty) (i) operating domestic flights within Russia or (ii) selling, supplying, transferring or exporting aircraft, or any of the goods suited for use in aviation or the space industry (Annex XI of Regulation 833/2014) or jet fuel and fuel additives (Annex XX of Regulation 833/2014), to a Russian air carrier or for flights within Russia as well as to any entity owned or controlled by such air carriers.
Exemption for an emergency landing or an emergency overflight.
Derogation for humanitarian purposes or for any other purpose consistent with the objectives of Regulation 833/2014.
New restrictions on drones
Tightening of the exemption from the flight ban to exclude drones – The EU clarified that the existing exemption for certain aircraft with seating capacity of four persons and a takeoff mass of no more than 2,000 kg is now only available for “manned” aircraft” and is therefore not available for drones.
New derogation from the flight ban for certain drones – The NCAs may now authorize unmanned aircraft operated in the “open” category (Article 4 of Regulation 2019/947), and used for private, noncommercial, noncorporate flights carried out within EU territory and airspace for recreational purposes to land in, take off from or overfly the territory of the EU.
b. Road Transport
New prohibition for certain EU road transport undertakings to increase their Russian and Belarusian ownership above 25% – It is now prohibited for any entity established in the EU before 8 April 2022 and that is already a road transport undertaking which transports goods by road within the EU territory, to increase their percentage share owned by a Russian or Belarusian person above 25%.
c. Vessels Contributing to Russia’s Ability to Wage War (under the Russia sanctions program)
Extension of the list of vessels listed in Annex XLII of Regulation 833/2014 subject to a port access ban and a prohibition to provide a broad array of services to cover 74 additional vessels.
New exemption from the prohibitions in relation to listed vessels (Annex XLII of Regulation 833/2014) – EU operators can now perform otherwise prohibited transactions or actions relating to those vessels necessary for the recognition or enforcement of a judgment or an arbitration award rendered in a Member State.
7. Infrastructure
New transaction ban on specific Russian ports and locks – It is now prohibited to engage in any transaction with Russian ports and locks (Part A of Annex XLVII) which are notably used (i) to transport drones and other combat-related goods, (ii) to circumvent the oil price cap or (iii) to circumvent EU sanctions against Russia, Crimea and the Oblasts.
Exemptions – This transaction ban does not apply:
In the case of a vessel in need of assistance;
To transactions necessary for the purchase, import or transport of natural gas, titanium, aluminum, copper, nickel, palladium and iron ore from or through Russia into the EU, the EEA, Switzerland or the Western Balkans;
To transactions necessary for the purchase, import or transport of oil from or through Russia (unless prohibited under Articles 3m or 3n of Regulation 833/2014);
To transactions necessary for the purchase, import or transport of pharmaceutical, medical, agricultural and food products permissible under Regulation 833/2014;
To transactions for the purchase, import or transfer of crude oil and of petroleum products (Annex XXV of Regulation 833/2014) where those goods originate in a third country and are only being loaded in, departing from or transiting through Russia, under certain conditions
To transactions necessary for the establishment, operation, maintenance, fuel supply and retreatment and safety of civil nuclear capabilities, and those required for the completion of civil nuclear facilities.
Reporting obligation – EU operators are required to inform their NCAs of any transaction benefiting from these exemptions within two weeks of its conclusion.
New transaction ban on specific Russian airports – It is now prohibited to engage in any transaction with Russian airports (Part B of Annex XLVII of Regulation 833/2014) that are notably used (i) to transport drones and other defense goods or (ii) to circumvent EU sanctions against Russia, Crimea and the Oblasts.
Exemptions – This transaction ban does not apply to transactions necessary for
Humanitarian purposes, the evacuation or repatriation of persons, or initiatives providing support to victims of natural, nuclear or chemical disasters;
The operation of flights required for attending meetings with the objective of seeking a solution to the Russian-Ukrainian conflict, or of promoting the policy objectives of the sanctions;
An emergency landing, takeoff or overflight;
Travel for diplomatic or consular missions of Member States or partner countries in Russia or of international organizations;
Travel, for personal reasons, of individuals to and from Russia or their immediate families’ members;
The purchase, import or transport of pharmaceutical, medical, agricultural and food products permissible under Regulation 833/2014.
Reporting obligation – EU operators are required to inform their NCAs of any transaction benefiting from these exemptions within two weeks of its conclusion.
8. Services Restrictions
Extension of the service ban to cover construction services – It is now prohibited to provide construction services to:
The government of Russia or entities established in Russia; and
The Republic of Belarus, its government, its public entities, or any person acting on their behalf or at their direction.
New prohibition to sell, license or transfer IP rights related to software for listed management of enterprises and software for industrial design and manufacture – It is now prohibited to sell, license or transfer IP rights or trade secrets related to the software listed in:
Annex XXXIX of Regulation 833/2014 to the government of Russia or to any entity established in Russia; or
Annex XXVI of Regulation 765/2006 to the Republic of Belarus, its government, its public entities, or any person acting on their behalf or at their direction.
New derogation for the functioning of a consular or diplomatic representation of Russia and Belarus in the EU – NCAs may now authorize the provision of otherwise prohibited services necessary for the functioning of a consular or diplomatic representation of Russia or Belarus located in a Member State.
New derogation for certain infrastructure – Under the Belarus program, NCAs may now authorize the provision of otherwise prohibited services necessary for the ongoing construction of infrastructures up to 25 meters in height necessary for civil energy supply and distribution to educational and health care facilities.
9. Financial Sector
a. Russia Sanctions Program
Thirteen additional banks subject to the SWIFT ban – As of 17 March 2025, it will be prohibited to provide specialized financial messaging services, which are used to exchange financial data, to 13 additional banks (Annex XIV of Regulation 833/2014) or to any Russian entity directly or indirectly owned for more than 50% by these listed banks.
First three banks using SPFS outside Russia subject to transaction ban – EU operators are now prohibited from engaging directly or indirectly in any transaction with Bank BelVEB, Belgazprombank and VTB Bank (PJSC) Shanghai Branch listed in Annex XLIV of Regulation 833/2014.
Derogation for Bank BelVEB – NCAs may authorize transactions with Bank BelVEB that are necessary for:
The repayment of “export credits guaranteed”;
Divestment from Russia or the wind-down of business activities in Russia by 26 August 2025 which were covered by export credits guarantees by a Member State; or
The execution of contracts concluded before 25 February 2025 until 26 August 2025 or until their expiry date (whichever is earlier) for beneficiaries located in the EU.
Extension of the transaction ban to the listed non-EU financial institutions and crypto- asset services providers (Part B of Annex XLV of Regulation 833/2014) (currently empty) – It is now prohibited to engage in any transaction with:
Non-EU financial institution or crypto-asset services providers that are involved in frustrating the prohibition of certain transactions in relation to the listed vessels (Annex XLII of Regulation 833/2014);
Those that circumvent the oil price cap; and
Entities acting on their behalf or at their direction.
Exemptions – This transaction ban shall not apply to transactions that are necessary:
For the export, sale, supply, transfer or transport of pharmaceutical, medical or agricultural and food products permissible under Regulation 833/2014;
To ensure access to judicial, administrative or arbitral proceedings in a Member State, as well as for the recognition or enforcement of a judgment or an arbitration award rendered in a Member State under certain conditions; or
For humanitarian purposes.
New derogation from the prohibition to accept deposits and to provide crypto-asset services specific to VTB Bank – NCAs may now authorize the acceptance of deposits or the provision of certain crypto-asset services that are necessary for the restructuring or liquidation of an entity associated with VTB Bank.
New exemption from the prohibition to export banknotes to Russia or to any person in Russia – This prohibition does not apply to sale, supply, transfer or export of banknotes denominated in any official currency of a Member State necessary for certain civil society and media activities which receive public funding from the EU, Member States or partner countries (Annex VIII of Regulation 833/2014).
b. Belarus Sanctions Program
Expansion of the scope prohibition to accept deposits exceeding €100,000 has been expanded to cover non-EU entities directly or indirectly owned for more than 50% by Belarusian nationals or residents.
Conversion of the exemption allowing the acceptance of deposits for non-prohibited cross-border trade in goods and services between the EU and Belarus into a derogation.
New derogations – NCAs may now authorize the acceptance of deposits intended exclusively for the payment of fees or service charges for the routine holding or maintenance of frozen funds.
New ban on the provision of crypto-asset wallet, account or custody services – it is now prohibited to provide crypto-asset wallet, account or custody services to Belarusian nationals, residents or entities.
Exemption – This prohibition does not apply to nationals or residents of a Member State, of a country member of the EEA or of Switzerland.
Derogations – NCAs may authorize the provision of wallet, account or custody services that are necessary:
To satisfy the basic needs of individuals and entities and their dependent family members;
For the payment of reasonable professional fees or the reimbursement of incurred expenses associated with the provision of legal services;
For extraordinary expenses;
For official purposes of a diplomatic mission or consular post or international organization;
For the payment of fees or service charges for the routine holding or maintenance of frozen funds;
For non-prohibited cross-border trade in goods and services between the EU and Belarus;
For humanitarian purposes; or
For civil society activities that directly promote democracy, human rights or the rule of law in Belarus.
New exemption from the prohibition to export banknotes to Belarus or to any person in Belarus – This prohibition does not apply to sale, supply, transfer or export of banknotes denominated in any official currency of a Member State necessary for civil society and media activities in Belarus which receive public funding from the EU, Member States or countries listed in Annex Vba of Regulation 765/2006.
10. Public Procurement and Financing
Extension of the public procurement ban – It is now prohibited to award or continue the performance of any public or concession contract to or with an individual or entity acting on behalf or at the direction of Russian national or resident.
Conversion of the exemption for certain public financing for small and medium-sized EU enterprises into a derogation – A prior authorization from NCAs is now required for the provision of public financing or financial assistance for trade with or investment in Russia and Belarus, up to €10 million per project benefiting small and medium-sized EU enterprises (previously exempted).
11. Corporate
New prohibition on Belarusians from owning or controlling EU crypto-assets companies – As of 26 March 2025, it is prohibited to allow Belarusian nationals or residents to directly or indirectly own or control, or to hold any posts in the governing bodies of an EU entity providing crypto-asset wallet, account or custody services.
Exemption – This prohibition does not apply to nationals or residents of a Member State, of a country member of the EEA or of Switzerland.
12. Media
Additional eight Russian media outlets subject to the broadcasting ban (Annex XV of Regulation 833/2014) – These media are EADaily, Fondsk, Lenta, NewsFront, RuBaltic, SouthFront, Strategic Culture Foundation and Krasnaya Zvezda.
13. Protection of EU Operators
Extension of the legal basis for compensation claims in Member States courts – Importantly, the protections offered to EU operators are extended to entities that they own or control. These can now also recover direct or indirect damages before the courts of the Member States, where these damages were:
Incurred by them 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 Russia- or Belarus-related sanctions, by any person targeted by the “No Claims Clause” (Articles 11(1) of Regulations 833/2014 and 269/2014 or Article 8d(1) of Regulation 765/2006); or
Caused to them by any person targeted by the “No Claims Clause” (Articles 11(1) of Regulation 833/2014) that benefited from, or is responsible for issuing, a decision pursuant to the Decree of the Russian President No. 302 of 25 April 2023 which allows seizure of some Russian assets owned by persons from so-called unfriendly countries or Russian legislation related or equivalent to it, provided that such decision is illegal under international customary law or under a bilateral investment treaty entered between a Member State and Russia.
On this point, the EU clarified that those damages may be recovered from the persons that (i) lodged these claims with the courts in third countries, (ii) benefited from, or are responsible for, a decision issued under those Russian decrees or legislation, or (iii) from those that own or control these entities.
Forum necessitatis: Where no court of a Member State has jurisdiction, a court may, on an exceptional basis, hear such claim for damages, provided that the case has a sufficient connection with the relevant Member State.
IV. Adoption of Comprehensive Sanctions Packages Against Crimea and Oblasts Aligned with Sanctions Against Russia and Belarus
On 24 February 2025, the Council introduced alignment sanctions packages against Crimea and the Oblasts “with the objective of inhibiting their integration into Russia, and preventing circumvention of EU sanctions.” Importantly, these are the first major amendments to the Crimea and Oblasts sanctions programs since their adoption in 2014 and 2022, respectively.
The new restrictive measures include (i) compliance requirements and enforcement guidelines in line with those already provided for under the EU’s Russia and Belarus sanctions programs, (ii) wider export restrictions on EU-denominated banknotes and certain high-risk goods and technology, and (iii) a broad ban on the provision of certain services and software. As the new amendments are identical for both programs, they are detailed together below.
These new EU sanctions were implemented through (i) Regulation 2025/401 for Crimea (amending Regulation 692/2014) and (ii) Regulation 2025/398 for the Oblasts (amending Regulation 2022/263).
1. New Compliance Requirements and Enforcement Guidelines
a. Extended Jurisdictional Scope of EU Sanctions
Sanctions jurisdiction extended through the assertion of “decisive influence” – As provided for under Russia individual and sectoral sanctions, the preambles of Regulations 2025/401 (Crimea) and 2025/398 (Oblasts) note that if individuals and entities subject to the jurisdiction of EU sanctions are able to and effectively assert a “decisive influence” (through ownership or control) over the conduct of an entity established outside the EU, they may become liable for actions of that entity that violate EU sanctions and should use their influence to prevent those actions from occurring. For more information on ownership and control, please see our alert from 27 June 2024.
New “best efforts” obligation for EU parent companies toward their non-EU subsidiaries – The “best efforts” obligation already provided for under Russia individual and sectoral sanctions and Belarus sanctions was included in the Crimea and Oblasts sanctions programs. For more information on the “best efforts” obligation, please see our alert from 27 June 2024.
b. Sanctions Circumvention
Clarification of standard for sanctions circumvention – As already done for Russia and Belarus sanctions, the prohibition to circumvent sanctions under the Crimea and Oblasts programs was amended to be aligned with the interpretation of the Court of Justice of the EU in Case C-72/11, Afrasiabi and Others. For more information on the definition of sanctions circumvention, please see our alert from 27 June 2024.
c. “No-Claim” Provision
Extension of the “No-Claim” provision – The prohibition to satisfy claims now applies to claims made by individuals and entities:
Designated in Annex I of Regulation 269/2014;
Which have been found by an arbitral, judicial or administrative decision to have infringed the prohibitions of Regulations 692/2014 (Crimea) and 2022/263 (Oblasts);
If the claim relates to goods under the import ban of Articles 2 of Regulations 692/2014 (Crimea) and 2022/263 (Oblasts);
In Crimea, the Occupied Oblasts or Russia; or
Acting through or on behalf of one of the above.
New legal basis for compensation claims in EU Member States courts – EU operators are now entitled to recover, in judicial proceedings before the competent courts of the Member States, any damages incurred by EU operators or entities owned or controlled by EU operators, as a consequence of claims lodged with courts in third countries, in connection with contracts or transactions affected by Regulations 692/2014 (Crimea) and 2022/263 (Oblasts), by any individual or entity targeted by the “No Claims” provision, provided that the operators concerned do not have effective access to remedies under the relevant jurisdiction.
Where no EU Member State court has jurisdiction, a court may, on an exceptional basis, hear such claim provided that the case has a sufficient connection with the Member State of the court seized.
d. Enforcement Guidance
Enhanced enforcement requirements – It is now specified that the effective, proportionate and dissuasive penalties for the violations of Regulations 692/2014 (Crimea) and 2022/263 (Oblasts), defined by the Member States, should include “as appropriate criminal penalties” as well as “appropriate measures of confiscation of the proceeds” of violations.
Clarification on the “No-Liability” clause – As already provided for under Russia individual and sectoral sanctions, the preambles of Regulations 2025/401 (Crimea) and 2025/398 (Oblasts) indicate that the protection against liability for EU operators that did not know or had no reasonable cause to suspect that their actions would infringe EU restrictive measures cannot be invoked where these operators “have failed to carry out appropriate due diligence,” including “simple checks or inspections,” taking into account “publicly or readily available information.”
Voluntary self-disclosure (VSD) as a mitigating factor – As already provided for under Russia individual and sectoral sanctions and Belarus sanctions, the VSD of violations of restrictive measures provided in Regulations 692/2014 (Crimea) and 2022/263 (Oblasts) may be taken into account by the Member States as a mitigating factor, in accordance with their respective national law. For more information on the VSDs, please see our alert from 27 June 2024.
2. Export Restrictions
a. Goods Suited for Use in the Transport, Telecommunications, Energy and Prospecting, Exploration and Production of Oil, Gas and Mineral Resources Sectors
Extension of the export ban – The existing prohibition on the sale, supply, transfer and export of goods and technology suited for use in the transport, telecommunications, energy and prospecting, exploration and production of oil, gas and mineral resources sectors listed in Annexes II of Regulations 692/2014 (Crimea) and 2022/263 (Oblasts) to any individual or entity or for use in Crimea or the Oblasts has been extended as follows:
It is now specified that the prohibition applies (i) whether the goods and technology originate in the EU or not and (ii) to both direct and indirect sales, supplies, transfers and exports.
Annexes II of Regulations 692/2014 (Crimea) and 2022/263 (Oblasts) have been amended to include additional high-risk technology, including cars and car parts, battlefield goods, electronics, machinery and aircraft parts.
Removal of the exemption for situations in which there are no reasonable grounds to determine that the products or the services are to be used in Crimea. Note that this exemption has not been previously provided for the Oblasts.
b. EU-Denominated Banknotes
New prohibition on the sale, supply, transfer or export of banknotes denominated in any official currency of Member States to Crimea or the Oblasts, any individual or entity within these territories, or for their use in these territories.
Exemptions allow the sale, supply, transfer and export of EU-denominated banknotes for:
Personal use of individuals traveling in these territories;
Official purposes of international organizations enjoying immunities in these territories; and
Certain civil society and media activities.
3. Import Restrictions
Amendment of the existing general exemption from the import ban on goods originating in Crimea or the Oblasts that now applies to goods (i) which have been made available to the Ukrainian authorities for examination, (ii) for which compliance with the conditions conferring entitlement to preferential origin has been verified, and (iii) for which a certificate of origin has been issued in accordance with the Association Agreement between the EU and its Member States, of the one part, and Ukraine, of the other part.
4. Services Restrictions
New prohibition to provide certain services and software to entities in Crimea and the Oblasts – It is now prohibited to:
Provide restricted services to entities in Crimea or the Oblasts (see the chart below);
Sell, supply, transfer, export or provide listed software in Annex IV to Regulation 692/2014 (Crimea) and Annex III of Regulation 2022/263 (Oblasts) (see chart below) to entities in Crimea or the Oblasts;
Provide related technical assistance, brokering services or other services to entities in Crimea or the Oblasts;
Provide related financing or financial assistance to entities in Crimea or the Oblasts;
Sell, license or transfer related IP rights or trade secrets to individuals or entities, or for use in, Crimea or the Oblasts.
Exemptions allowing the provision of accounting, auditing, bookkeeping, tax consulting, business and management consulting, public relations, construction, architectural, engineering, legal advisory and IT consultancy services, if strictly necessary for:
The exercise of the right of defense in judicial proceedings and the right to an effective legal remedy;
To ensure access to judicial, administrative or arbitral proceedings in the Member States and for the recognition or enforcement of a judgment or an arbitration award rendered EU Member States, under certain conditions.
Exemptions allowing the provision of construction, architectural, engineering, legal advisory, IT consultancy, market research, public opinion polling, technical testing and analysis, and advertising services and the provision restricted software, if necessary for public health emergencies, the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters.
Derogations allowing NCAs to authorize the provision of restricted software, where necessary for contribution of Ukrainian nationals to international open-source projects.
Derogations allowing NCAs to authorize the provision of restricted services and software, where necessary for:
Humanitarian purposes;
Civil society activities that directly promoting democracy, human rights or the rule of law;
The functioning of international organizations enjoying immunities;
Ensuring critical energy supply within the EU of certain metals;
Certain human health, safety and environmental purposes;
Certain civil nuclear purposes; or
The provision of certain electronic communication services.
Exemption (under the Oblasts sanctions program) allowing the provision of technical assistance or services related to newly restricted services and software by certain public entities and organizations for humanitarian purposes in the Oblasts.
Derogation (under the Oblasts sanctions program) allowing NCAs to authorize, through specific or general authorizations, the provision of technical assistance or services related to newly restricted services and software necessary for humanitarian purposes in the Oblasts.
5. Amended Derogation for Certain Activities of International Organizations
Tightening of the derogation allowing NCAs to authorize certain prohibited activities necessary for official purposes of international organizations enjoying immunities in accordance with international law located in Crimea or the Oblasts (previously also available for activities necessary for official purposes of consular missions). As a reminder, this derogation applies to:
The prohibition to provide certain investment or financing to entities in Crimea or the Occupied Oblast or to acquire any participation in ownership of real estate located in these territories; and
The export ban (and related services) to Crimea and the Oblasts on goods and technologies suited for use in the transport, telecommunications, energy and the prospecting, exploration and production of oil, gas and mineral resources sectors (Annexes II of Regulations 692/2014 and 2022/263).
V. Updates to the Commission’s FAQs on Ukraine-Related Sanctions
Since our last alert on EU’s Russia sanctions program, the Commission has updated its FAQs on the implementation of Regulation 269/2014 (Russia individual sanctions), 833/2014 (Russia sectoral sanctions), 765/2006 (Belarus sanctions), 692/2014 (Crimea sanctions) and 2022/263 (Oblasts sanctions) on its dedicated webpage regarding the provision of restricted services (last updated on 14 February 2025) and the Oblasts (last updated on 11 February 2025).
Regarding the Oblasts, Regulation 2022/263 covers all areas of the Donetsk, Kherson, Luhansk and Zaporizhzhia oblasts of Ukraine that are not under the control of the Ukrainian government. In its amended FAQs, the Commission stressed that, considering the fluid situation in the country, regular assessment of this control might be necessary.
For this purpose, EU operators may refer to the up-to-date list of territories temporarily occupied by Russia, available on the dedicated website maintained by Ukrainian authorities, and contact their NCA in the event of doubt.
Regarding restricted services, Article 5n of Regulation 833/2014 (Russia sectoral sanctions) notably prohibits the direct and indirect provision of auditing services to the government of Russia or entities in Russia. In its amended FAQs, the Commission clarified that this prohibition does not apply to auditing services carried out by operators on information required for the purposes of consolidated financial reporting of a group controlled by an EU entity (e.g., to comply with international auditing standards and requirements), if the services are provided to and for the benefit of the EU parent company.
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Hughes Hubbard’s Paris-based EU Economic Sanctions and Export Controls team, part of the firm’s Sanctions, Export Controls and Anti-Money Laundering practice, is well positioned to assist EU operators in navigating, in a practical and pragmatic way, EU sanctions against Russia, Belarus, Crimea, the Oblasts and other EU thematic or country-based sanctions programs. Please contact us if you have any questions about the above or any of the prior topics of our client alerts.
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