June 27, 2022

Volume XII, Number 178

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June 24, 2022

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European Union, United Kingdom Propose New Sanctions Against Russia, Including Ban on Certain Services

OVERVIEW


As Russia continues to escalate its military operations in Ukraine, the European Union (EU) and the United Kingdom (UK) unveiled details of new sanctions against Russia. This alert summarises the proposed restrictions.

IN DEPTH


Ursula von der Leyen, President of the EU Commission, announced the newly proposed restrictions as part of the sixth package of sanctions against Russia. These restrictions include:

  • An import ban on Russian oil, with the supply of crude oil to be phased out within six months, and refined products by the end of 2022.

  • A ban on the provision of services to Russian companies by accountants, consultants, and public relations service providers. It is currently unclear which services will be in scope of the ban and whether a transitional period will be granted for EU service providers to comply with the new restrictions.

  • The expansion of the prohibition on the provision of financial messaging services (including SWIFT) to Sberbank and two additional “major banks” (yet to be named).

  • A ban on three additional Russian state-owned broadcasters (yet to be named).

  • Asset freeze restrictions on “high ranking military officers and other individuals who committed war crimes in Bucha and who are responsible for the inhuman siege of the city of Mariupol”.

  • Although not included in Ursula von der Leyen’s announcement, the EU is also considering restricting the provision of cloud services to Russia.

The measures detailed above are not yet in force and will require approval from EU Member States. The proposed ban on Russian oil may be particularly contentious as Hungary previously indicated it would veto sanctions restricting energy imports.

Similarly, UK Foreign Secretary Liz Truss also announced that the UK would impose further sanctions against Russia, including:

  • A ban on the provisions of management, consulting, accounting and public relationship services to Russia.

  • Further sanctions on Russian state-owned broadcasters and new organisations, including RT and Sputnik online.

  • New asset freeze restrictions on Russian individuals and organisations, including Russian journalists.

The text of the new UK sanctions has not yet been published as of the time of writing this alert. It is therefore unclear which services will be affected, the scope of the new restrictions, and how closely the UK sanctions will align with those proposed by the EU.

© 2022 McDermott Will & EmeryNational Law Review, Volume XII, Number 124
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About this Author

Raminta Dereskeviciute London Counsel Product Compliance Attorney McDermott Will & Emery Law Firm
Counsel

Raminta Dereskeviciute focuses her practice on product compliance and trade regulation (sanctions and export controls). She has significant experience in EU chemical control (REACH), EU product safety and liability, EU regulatory law and frequently represents clients before the European Chemicals Agency Board of Appeal. Raminta also advises businesses on the implications Brexit will have in relation to a range of regulatory compliance issues.

Raminta counsels clients on the EU and the UK sanctions regimes and export controls, including in higher...

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Ludovica Rabitti London Associate Attorney Corporate Advisory M&A McDermott Will & Emery
Associate

Ludovica Rabitti focuses her practice on corporate advisory matters, with a strong background in privacy and data protection. Her corporate experience encompasses assisting on high value private equity transactions and M&A deals in the aviation, transport, manufacturing and oil & gas industries.

Ludovica has an in-depth understanding of and great experience in data privacy and cybersecurity. She has assisted global financial institutions with BCR applications and assisted with drafting data processing addendum to contracts. She has also...

+44 20 75776954
Associate

William Merry focuses his practice on a range of domestic and international corporate crime and investigationsrelated matters. He has experience in resolving anti-bribery and corruption, anti-money laundering, fraud and sanctions matters in both contentious and non-contentious contexts.

Prior to joining McDermott, William has gained experience at an international law firm, during which time he spent periods on secondment to two large financial institutions. William has worked with a spectrum of clients in a range of sectors, including high...

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Alexa Ningelgen Public Law Attorney McDermott Will Emery Dusseldorf
Partner

Dr. Alexa Ningelgen advises clients on all aspects of public law, including administrative, regulatory and constitutional law. She has in-depth knowledge of administrative litigation and the relevant procedures.

Alexa regularly represents major private and public companies and authorities with interests in a wide range of industries, including real estate, infrastructure, environment and transportation. Other main areas of focus include public institution law and immigration law.

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