Factbox: EU Targets LNG and Shipping in 14th Russia Sanctions Package, According to Reuters

BRUSSELS (Reuters) – On Monday, European Union member states approved a 14th round of sanctions against Russia in response to its invasion of Ukraine in 2022.

This latest package introduces a variety of measures, marking the first time the EU has targeted Russia’s gas sector. Additionally, 69 entities and 47 individuals have been added to the sanctions list, increasing the total number of sanctioned parties to over 2,200.

Notable inclusions in the new sanctions are Russia’s state-owned shipping company, Sovcomflot, along with its CEO, and several businesses from China, Kazakhstan, Kyrgyzstan, Turkey, and the United Arab Emirates.

Liquefied Natural Gas (LNG) Measures
The EU has implemented a ban on the use of its ports for the transshipment of Russian LNG, which will take effect after a nine-month transition period. Furthermore, the EU prohibits new investments and the provision of goods, technology, and services for existing LNG projects that are currently under construction, including Arctic LNG 2 and Murmansk LNG.

Shipping Restrictions
New regulations prevent ships that have supported Russia’s military efforts from docking in EU ports. This could encompass vessels transporting goods that generate significant revenue for Russia, as well as those involved in the defense and security sectors or in the shipping of fuels outside of the G7’s oil price cap system. As of now, 27 vessels have been designated under this framework.

Accountability Measures
EU operators will also be held accountable if non-EU entities they control violate sanctions. For sensitive goods used in military operations, operators must implement due diligence systems to identify and mitigate risks associated with exports to Russia. Failing to do so could result in liability.

Restrictions on Political and Media Entities
The EU has prohibited political parties, foundations, think tanks, and media organizations from receiving any form of financing, donations, or economic benefits from Russia. Specifically, the media outlets Voice of Europe, RIA Novosti, Izvestia, and Rossiyskaya Gazeta have been added to the sanctions list, particularly ahead of the EU parliamentary elections held in early June.

Import and Export Controls
The EU has enacted a ban on importing helium from Russia, along with additional restrictions on the export of items that could enhance Russian industry. This includes manganese ores, rare earths, excavation machinery, and electrical equipment.

Diamonds Regulation
The introduction of a mandatory traceability scheme for rough and polished diamond imports has been postponed by six months, now set to begin on March 1, 2025. This amendment also alters the previously agreed import ban on Russian diamonds from earlier sanctions packages and delays the ban on jewelry containing Russian diamonds processed in third countries, which will be reevaluated based on G7 actions. The ban does not apply to diamonds that were outside of Russia prior to the new regulations or those that were polished before the ban was enacted.

Transport Restrictions
The sanctions package expands the prohibition on Russian flights, now covering any aircraft where a Russian individual or entity specifies the time or location of landing. Operators are required to provide authorities with aircraft ownership details, and in some cases, passenger information. Additionally, the regulations on road transport are tightened to exclude companies where Russian individuals or firms hold a 25% or greater stake.

Banking Measures
EU banks operating outside Russia will no longer be able to utilize Russia’s alternative payments system akin to SWIFT. The EU may also extend this prohibition to non-Russian banks connected to Russia’s SPFS system, preventing them from engaging with EU operators.