The EU adopted a new package of sanctions against Russia and its supporters, last Friday, in response to Russia’s invasion of Ukraine. The tenth package of sanctions was adopted as the world marked one year since Russia’s full-scale invasion of Ukraine, targeting 121 entities and individuals.
The package includes new listings and trade and financial sanctions. includes additional export restrictions on sensitive dual-use and advanced technology items that could contribute to Russia’s military capabilities and technological enhancement, based on information retrieved from Russian military systems on the battlefield. Furthermore, a new full export ban is placed on turbojets and their parts, therefore reinforcing the existing ban on aircrafts, their engines and parts.
Moreover, the package includes a third-country shipping company, suspected of helping Russia circumvent sanctions on oil exports. This company is SUN Ship Management Limited, the Dubai-based operational arm of Sovcomflot with 92 crude oil, LNG and chemical tankers under its management, was initially thought to have been removed on the grounds that targeting a third-country entity would prove legally difficult, but details published in the EU Official Journal on Saturday confirm that the company is now a named target.
Soon after the invasion of Ukraine and the installation of Western sanctions, in April 2022, Sovcomflot gave Sun control of around 90 of its LNG vessels and tankers. Notwithstanding Sovcomflot’s denials, the majority of these ships still go by the same names, including those that start with the prefix “SCF.” Notably, among the ships are Russia’s brand-new LNG icebreakers, which are the pride of the Sovcomflot fleet and the only vessels of their kind.
Regarding the decision to sanction state-backed reinsurer RNRC, the EU stated:
This reinsurance service offered by the RNRC has enabled the Russian Government to deflect and mitigate the impact of western sanctions on its oil trade.
The sanctions also include key decision makers on Russia’s political and institutional level, military leaders and two military commanders of the Wagner group, individuals responsible for the deportation and forced adoption of Ukrainian children, as well as Iranian individuals involved in the elaboration and supply of drones.
Alfabank, Rosbank, and Tinkoff Bank are the three Russian banks that have been added to the list of organizations that are subject to the asset freeze and the ban on making money and resources available.
In addition, the European Union agreed to sanction Atomflot, the operator of Russia’s nuclear icebreaker fleet. The EU noted that Atomflot’s capabilities are key for Russia’s Arctic hydrocarbon export strategy, particularly as it tries to send more oil eastward along the frigid Northern Sea Route to Asia.
Sanctions are imposing a direct cost on Russia for its war of aggression and damaging Russia’s industrial and economic ability to wage war, manufacture more weapons, and repair existing weapons systems. The sanctions also deprive the Russian army and its suppliers of the goods and equipment needed to wage its war against Ukraine.
