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Ukraine Crisis – EU Sanctions Update
EU Publishes Guidance on Asset Freeze: On October 10, 2022, the European Commission updated the FAQ on asset freezes with one additional question on access to EU ports for vessels owned or operated by a designated person or entity. (https://finance.ec.europa.eu/publications/assets-freeze-and-prohibition-provide-funds-or-economic-resources_en).
EU Publishes Guidance on Access to EU Ports: On October 10, 2022, the European Commission updated an FAQ on access to EU ports with one additional question on bareboat charters out under Russian flag reverting to an EU Member State flag. (https://finance.ec.europa.eu/publications/access-eu-ports_en).
EU Publishes Guidance on Export Related Restrictions: On October 10, 2022, the European Commission updated an FAQ on export-related restrictions, updating 22 questions.(https://finance.ec.europa.eu/publications/export-related-restrictions_en).
Suspect Arrested in the Netherlands for Circumventing EU Trade Sanctions Against Russia:With the support of Europol's European Financial and Economic Crime Centre, the Dutch Fiscal Information and Investigation Service (FIOD) arrested a 55-year-old individual on 27 September believed to be circumventing the EU trade sanctions against Russia. (https://www.europol.europa.eu/media-press/newsroom/news/suspect-arrested-in-netherlands-for-circumventing-eu-trade-sanctions-against-russia).
EU Commission Ready to Consider Further Sanctions Against Russian Propaganda: In a reply to a parliamentary question, the EU Commission stated that it is considering further action against Russian propaganda channels, including to ensure the effective implementation of already adopted measures. (https://www.europarl.europa.eu/doceo/document/E-9-2022-002793-ASW_EN.html).
EU Commission is Considering Further Guidance on the Consequences of EU Sanctions on EU Investors: In a reply to a parliamentary question, the EU Commission stated that it is aware of the consequence of EU and Russian sanctions on EU investors and is considering further guidance on the question. (https://www.europarl.europa.eu/doceo/document/E-9-2022-002866_EN.html).
European Commission Raised a Further €11 Billion for NextGenerationEU and to Support Ukraine: On October 13, the European Commission issued €11 billion in a dual tranche transaction, the proceeds of which will be used to support Ukraine under the EU's MFA programme and Europe's recovery under the flagship NextGenerationEU programme. The deal consisted of a €5 billion tap of the 7-year bond due on 4 December 2029 and a new 20-year bond of €6 billion due on 4 November 2042. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6097).
Council Gives the Final Go-Ahead to Further Flexibility in the Use of Cohesion Policy Funds in Response to Russia's War in Ukraine: On October 13, the Council adopted a package of legislative changes to step up support for EU governments and regions in managing the effects of Russia's war in Ukraine, including hosting more Ukrainian refugees. The new measures complement the funding already mobilized in support of Ukrainian refugees under Cohesion's Action for Refugees in Europe (CARE), adopted in April. They further increase flexibility in the use of EU cohesion policy funds to channel resources towards supporting refugees, while taking into account the budgetary constraints faced by member states and ensuring maximum efficiency of support. (https://www.consilium.europa.eu/en/press/press-releases/2022/10/13/council-gives-the-final-go-ahead-to-further-flexibility-in-the-use-of-cohesion-policy-funds-in-response-to-russia-s-war-in-ukraine/).
EU Presses Turkey to Align on Russia Sanctions: In an October 10 speech, European Commission President Ursula Von Der Leyen said "In third countries, if you take European goods, bring them to third countries, and then bring them to Russia, the person who does that or entity that does that will be listed by us." The comment was widely interpreted as criticism of Turkey, the only NATO ally which has not yet imposed sanctions on Russia. (https://www.ft.com/content/eb64609f-862c-4fc9-ac90-8cf93e209229).
Serbia Should Align with Sanctions and Foreign Policy, EU Commission Report Says: Serbia, the biggest EU candidate country in the Western Balkans, has backslid on foreign policy alignment and must step up commitments to EU strategy and reform, according to the enlargement report published on Wednesday. (https://www.euractiv.com/section/enlargement/news/serbia-should-align-with-sanctions-and-foreign-policy-eu-commission-report-says/).
Commission Approves €10 Million Slovak Scheme to Support Food Producers in Context of Russia's War Against Ukraine: The European Commission has approved a €10 million Slovak scheme to support agricultural product processors and the food production sector in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6129).
Commission Approves €25 Million Italian Scheme to Support Haulage Operators Using Liquefied Natural Gas as Fuel in Context of the Russia's War Against Ukraine: The European Commission has approved a €25 million Italian scheme to support haulage operators using liquefied natural gas (LNG) as fuel in the context of the Russia's war against Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_6166).
Commission Approves €80 Million Slovenian Scheme to Support its Economy in Context of Russia's War Against Ukraine: The European Commission has approved a €80 million Slovenian scheme to support companies across sectors in the context of Russia's war against Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_6106).
Commission Approves €1 Million Maltese Aid Measure to Support Fast Ferry Passenger Transport Between Malta and Gozo in Context of Russia's War Against Ukraine: The European Commission has approved a €1 million aid scheme to support companies active in fast ferry passenger transport between the islands of Malta and Gozo in the context of Russia's war against Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_6074).
Commission Approves €10 Billion Finnish Scheme to Support Electricity Producers in the Context of Russia's War Against Ukraine: The European Commission has approved a €10 billion Finnish loan guarantee scheme to support energy producers in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5994).
Commission President and High Representative Present New EU Sanction Package: In two statements made on Wednesday, the Commission President and High Representative presented the new package of sanctions to be presented to the Council. New sanctions would include the listing of new individuals and entities consisting of (i) persons who organized and facilitated the referenda in Ukraine, (ii) individuals in the defense sector, (iii) actors who spread disinformation and (iv) people who participate in the circumvention of sanctions. The EU will also extend the geographical scope of the restrictions applying to Crimea, to Donetsk and Luhansk to the oblasts of Zaporizhzhia and Kherson. In terms of economic sanctions the EU will impose new import and export bans including as regards additional aviation items, or electronic components and specific chemical substances. The Commission also announced additional bans on providing European services to Russia, and a prohibition for EU nationals to sit on governing bodies of Russian state-owned enterprises. Finally, the new package will lay the legal basis for an oil price cap. (https://www.consilium.europa.eu/en/press/press-releases/2022/09/28/ukraine-declaration-by-the-high-representative-on-behalf-of-the-european-union-on-the-illegal-sham-referenda-by-russia-in-the-donetsk-kherson-luhansk-and-zaporizhzhia-regions/ and https://www.europarl.europa.eu/news/en/press-room/20220928IPR41710/ukraine-needs-heavy-armoury-europe-must-be-able-to-take-the-next-step).
Next Russia Sanctions Package to Tackle Evasion, but Nuclear, Oil-Price cap Likely to Stay Out:Nuclear energy and an EU oil-price cap are unlikely to find their way into the seventh sanction package proposal, several EU diplomats said after consultations for a seventh Russia sanctions package over the weekend left some more hawkish member states dissatisfied. (https://www.euractiv.com/section/europe-s-east/news/next-russia-sanctions-package-to-tackle-evasion-but-nuclear-oil-price-cap-likely-to-stay-out/).
EU Sanctions Set to Tighten the Screw on Russian Industry, Society: A comprehensive list of products, ranging from semiconductors to toilet paper, has been included in an additional EU sanctions package designed to increase pressure on the Russian economy as the war in Ukraine rages on. (https://www.euractiv.com/section/global-europe/news/eu-sanctions-set-to-tighten-the-screw-on-russian-industry-society/).
EU Parliament to Demand Suspension of Serbia's Accession talks: The European Parliament will ask to suspend Serbia's EU membership talks for as long as Belgrade refuses to join the bloc's sanctions against Russia. (https://www.euractiv.com/section/politics/short_news/eu-parliament-to-demand-suspension-of-serbias-accession-talks/).
Russian National Settlement Depository Brings Court Action Against EU Sanctions: The National Settlement Depository brought an action before the General Court of the European Union to obtain the annulment of EU sanctions in so far as they apply to them. Two other individuals, Ms. Mordashova and Ms. Melnichenko, also brought actions before the General Court. (https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=uriserv:OJ.C_.2022.368.01.0030.02.ENG&toc=OJ:C:2022:368:TOC, https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=uriserv:OJ.C_.2022.368.01.0031.01.ENG&toc=OJ:C:2022:368:TOC and https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=uriserv:OJ.C_.2022.368.01.0032.01.ENG&toc=OJ:C:2022:368:TOC).
Polish Parliament Adopts Resolution Calling on EU to Stop Issuing Visas to Russians: The document said that the parliament supports "measures taken by the Polish government in the international arena that are aimed at the termination of issuance of visas to citizens of Russia". (https://www.urdupoint.com/en/world/polish-parliament-adopts-resolution-calling-o-1570648.html).
EU High Representative Condemns Referenda in Ukraine: The European Union High Representative condemned in the strongest possible terms the illegal sham "referenda" conducted in parts of the Donetsk, Kherson, Luhansk, and Zaporizhzhia regions in a Declaration published on Wednesday. (https://www.consilium.europa.eu/en/press/press-releases/2022/09/28/ukraine-declaration-by-the-high-representative-on-behalf-of-the-european-union-on-the-illegal-sham-referenda-by-russia-in-the-donetsk-kherson-luhansk-and-zaporizhzhia-regions/).
EU Parliament President Calls for Further Military Support to Ukraine: Addressing 'Night of European Ideas' in Berlin, President Metsola called for further support to Ukraine. He said, "Tanks are needed. We must be able to take that next step." (https://www.europarl.europa.eu/news/en/press-room/20220928IPR41710/ukraine-needs-heavy-armoury-europe-must-be-able-to-take-the-next-step).
EU Launches Program for Displaced Researchers from Ukraine: With a budget of €25 million, the program will provide fellowships for doctoral candidates and post-doctoral researchers. The scheme allows academic and non-academic organizations in Member States and countries associated to Horizon Europe to host researchers from six months up to two years. (https://ec.europa.eu/commission/presscorner/detail/en/IP_22_5792).
EU Commission Welcomes Joint Statement to Provide Remittance Services to Ukraine: The European Commission has welcomed a Joint Statement by EU and Ukrainian financial institutions to provide access to affordable, accessible and transparent remittance services to Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/IP_22_5782).
Commission Replies to Parliamentary Question on Inclusion of Vladimir Potanin in the List of Sanctioned Persons: According to the Reply from the Commission to a parliamentary question, as regards the possible inclusion of Mr. Vladimir Potanin on the list of persons and entities subject to restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine, the Council has not taken a position on this matter. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001075-ASW_EN.html).
Commission Approves EUR 700 Million Italian Scheme to Support Companies in Context of Russia's War Against Ukraine: The European Commission has approved a €700 million Italian scheme to support companies in the context of Russia's war against Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5729).
Commission Approves EUR 20 million Greek Scheme to Support Newspaper Publishers in Context of Russia's Invasion of Ukraine: The European Commission has approved a €20 million Greek scheme to support newspaper and magazine publishers in the context of Russia's invasion of Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_5762).
Commission Approves EUR 14 million Estonian Scheme to Support Companies Active in the Food and Beverages Production Sectors in in the Context of Russia's Invasion of Ukraine: The European Commission has approved a €14 million Estonian scheme to support companies active in the sectors of food and beverages production in the context of Russia's invasion of Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_5762).
Russia's Nuclear Trade with Europe Flows Despite Ukraine war: While the EU has agreed to curtail its use of Russian oil and gas, its member nations continue to import and export nuclear fuel that is not under EU sanctions – to the chagrin of the Ukrainian government and environmental activists. (https://economictimes.indiatimes.com/news/international/world-news/russias-nuclear-trade-with-europe-flows-despite-ukraine-war/articleshow/94540914.cms).
Finland to Close Border to Russian Tourists: On September 29, 2022, Finland is to close its border to Russian tourists, the government announced. Finnish Foreign Minister Pekka Haavisto said the border will be closed to Russians traveling to Finland for tourism or for transit purposes "until further notice." The border will close at midnight on Thursday. Entry to Russians for family visits, as well as for work and studies, will still be permitted, as will the transporting of essential materials. The government said the decision was taken following: (i) talks with Ukraine, (ii) fears that Russians were circumventing the EU's flight restrictions; and (iii) because of Finland's relations with the Baltic states and Poland. (https://www.politico.eu/article/finland-close-border-frussian-tourists/)
EU Plans New Sanctions After Putin's Nuclear Escalation Threat: The EU's foreign policy chief Josep Borrell said at a press conference late on Wednesday in New York that there was unanimity among EU foreign ministers to adopt additional measures, including against "sectors and persons," without going into further details. (https://www.politico.eu/article/eu-draws-up-new-sanctions-as-west-condemns-putins-threats/).
Police Raid Villas Tied to Former Arsenal FC Shareholder Amid Money Laundering Probe: On September 21, 2022, German police raided a lakeside villa tied to Russian-Uzbek oligarch Alisher Usmanov in a bid to seize evidence of tax evasion. The raid follows investigations into money-laundering and violations of EU sanctions by Mr. Usmanov. The 69-year-old has been on the Western sanctions list following Russia's invasion of Ukraine from 24 February this year. The oligarch has a net worth of $14.6bn, according to Forbes. (https://news.sky.com/story/alisher-usmanov-police-raid-villas-tied-to-former-arsenal-fc-shareholder-amid-money-laundering-probe-12702784).
Hungarian PM Orban Says EU's Russia Sanctions Should be Scrapped: Pro-government newspaper Magyar Nemzet cited Hungarian Prime Minister Viktor Orban as saying that the EU sanctions have driven up gas prices and inflation. He added that if these measures were to be scrapped, gas prices would drop by 50 percent immediately while inflation would also fall. (https://www.reuters.com/world/europe/hungary-pm-orban-says-eus-russia-sanctions-should-be-scrapped-report-2022-09-22/).
EU Publishes Guidance on Import, Purchase and Transfer of Listed Goods: On September 19, 2022, the European Commission published an FAQ on import, purchase and transfer of listed goods updating two questions on transfer to third countries, as well as financing or financial assistance related to such transfer, carried out by EU operators or via the EU territory. (https://finance.ec.europa.eu/system/files/2022-09/faqs-sanctions-russia-ipr_en.pdf).
EU High Representative Makes Declaration on Russian Planned Referenda: Through the voice of the High Representative, in the context of an Informal Foreign Affairs Council, the EU condemned the plans to organize illegal "referenda" which aim at the annexation by Russia parts of Donetsk, Kherson, Luhansk, and Zaporizhzhia regions – areas of Ukraine currently occupied by Russia. These illegal "referenda" are another blatant violation of the independence, sovereignty and territorial integrity of Ukraine and a serious violation of the UN Charter, according to the EU. (https://www.consilium.europa.eu/en/press/press-releases/2022/09/22/declaration-by-the-high-representative-on-behalf-of-the-european-union-on-russia-s-war-of-aggression-against-ukraine/).
EU Issues Statement on the Sentencing of Crimean Tatar Leaders by Russia: The EU condemns the so-called "sentence", issued September 21, in the illegally annexed Crimea by illegitimate Russian authorities, against First Deputy Head of the Mejlis of Crimean Tatar People Nariman Dzhelial, as well as brothers Asan and Aziz Akhtemov. (https://www.eeas.europa.eu/eeas/ukraine-statement-spokesperson-sentencing-crimean-tatar-leaders-russia_en).
Council Adopts Additional EUR 5 Billion Assistance to Ukraine: On September 22, the EU Council formally adopted the decision to provide €5 billion of additional macro-financial assistance (MFA) to Ukraine, as a matter of urgency. On 9 September, EU ministers for finance had agreed a statement in support of these additional €5 billion assistance for Ukraine at the informal Ecofin Council meeting in Prague. This additional assistance was formally adopted on September 22, after the necessary formal steps were completed within just 11 days. (https://www.consilium.europa.eu/en/press/press-releases/2022/09/20/council-adopts-additional-5-billion-assistance-to-ukraine/).
Brussels Approves Exceptions to Fruit and Vegetable Legislation Due to the War in Ukraine: On Wednesday, the Official Journal of the European Union (OJEU) published Delegated Regulation 2022/1623. This regulation approves exceptions to Delegated Regulation (EU) 2017/891 for the year 2022 regarding the value of marketed production, national strategies, and the recovery of the Union's financial assistance for multiannual commitments in the fruit and vegetable sector due to the crisis caused by Russia's invasion of Ukraine. (https://www.freshplaza.com/article/9461865/brussels-approves-exceptions-to-fruit-and-vegetable-legislation-due-to-the-war-in-ukraine/).
Commission Approves EUR 50 million Lithuanian Scheme to Support Companies in the Context of Russia's Invasion of Ukraine: The European Commission has approved a €50 million Lithuanian scheme to support small, medium and large companies in the context of Russia's invasion of Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_5704).
Commission Approves EUR 96 million Italian Scheme to Support Companies in Lombardy in the Context of Russia's Invasion of Ukraine: The European Commission has approved a €96 million Italian scheme to support companies in the region of Lombardy in the context of Russia's invasion of Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_5728).
Cyprus President Cautions EU Over Russia Sanctions Impact on Shipping: The European Union needs to ensure its sanctions on Russia sanctions do not negatively impact the bloc or individual member states, especially when it comes to the shipping sector, said Cyprus's President, Nicos Anastasiades. (https://www.seatrade-maritime.com/regulation/cyprus-president-cautions-eu-over-russia-sanctions-impact-shipping).
The European Council on Foreign Relations Issues Plan to Support Ukraine: The European Council on Foreign Relations Think Tank issued a plan to support Ukraine. This plan would comprise military assistance to Ukraine in the form of a 'security compact'; security assurances that respond to scenarios of Russian escalation; economic support, giving Ukraine access to the EU's single market; and help to secure Ukraine's energy supply. (https://ecfr.eu/publication/survive-and-thrive-a-european-plan-to-support-ukraine-in-the-long-war-against-russia/).
Czech MEP Says EU-Azerbaijan Gas Deal was Mistake: Pirate party MEP Markéta Gregorová is doubtful about the gas imports memorandum signed between the EU and Azerbaijan as, according to her, the EU should learn from its previous experience with Russia and not increase its dependence on dictatorships. (https://www.euractiv.com/section/politics/short_news/czech-mep-eu-azerbaijan-gas-deal-was-mistake/).
Germany Nationalizes Uniper: On September 22, the German government announced its intent purchase a 99 percent stake in natural gas importer Uniper. The company was the country's largest importer of Russian natural gas, and is in extreme financial difficulty as a result of Russia's decision to restrict exports of natural gas to the EU. (https://www.wsj.com/articles/germany-to-nationalize-ailing-uniper-after-russian-gas-cuts-11663747126).
French, German, Polish Leaders Condemn Russian-Led Referendums in Ukraine: On Tuesday, French President Emmanuel Macron, German Chancellor Olaf Scholz, and Polish President Andrzej Duda released statements condemning Russian-led referendums in Ukrainian territory, and saying that the referendums should not be recognized by the international community. (https://www.france24.com/en/europe/20220920-live-ukrainian-soldiers-cheer-counteroffensive-s-swift-advance-into-donbas; https://www.rferl.org/a/ukraine-occupied-russia-referendums/32042796.html; https://www.reuters.com/world/europe/referendums-organised-by-russia-ukraine-are-worthless-says-polish-president-2022-09-20/).
Week of September 5, 2022
European Commission to Propose Price Cap on Russian Gas: The European Commission will propose a price cap on Russian gas, alongside measures including a mandatory EU cut in electricity use and a ceiling on the revenue of non-gas power generators, the President of the European Commission said on Wednesday.(https://www.reuters.com/business/energy/eu-propose-price-cap-russian-gas-von-der-leyen-says-2022-09-07/).
Cap the Cost of All Gas Imports to EU, Belgian PM Says: The European Union should impose a radical plan to cut the cost of energy by capping the price paid for gas imported from anywhere else in the world, Belgian Prime Minister Alexander De Croo said in an interview with POLITICO. De Croo's proposal would go far beyond the Commission's plan to limit price paid for Russian gas. (https://www.politico.eu/article/russia-gas-de-croo-belgium-cap-price-eu-von-der-leyen-brussels-ukraine-war-inflation-energy-cost/).
EU Plans 'Revenue Cap' on Power Firms and Mandatory Electricity Savings at Peak Hours: A draft EU law for the first time introduces obligatory demand reduction targets for electricity consumption, and places "a revenue limit" on power companies making windfall profits from the energy crisis, according to a leaked proposal seen by EURACTIV. (https://www.euractiv.com/section/energy/news/leak-eu-plans-revenue-cap-on-power-firms-mandatory-electricity-savings-at-peak-hours/).
European Commission Proposes Second EUR 5 Billion Tranche of Macro-Financial Assistance to Ukraine: The European Commission has proposed a further EUR 5 billion in macro-financial assistance (MFA) loans to Ukraine as the second part of the exceptional MFA package of up to EUR 9 billion announced in the Commission's communication of 18 May 2022 and endorsed by the European Council of 23-24 June 2022.(https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5373).
Commission Proposes Full Suspension of Visa Facilitation Agreement with Russia: The Commission is proposing to fully suspend the EU's Visa Facilitation Agreement with Russia. The suspension is in response to increased risks and threats to the Union's security interests and the national security of the Member States as result of Russia's military aggression against Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5346).
EU-Ukraine Association Council Adopts New Agreements: The EU-Ukraine Association Council took place on September 5th, the Council adopted a new agreement with new agreements further strengthening cooperation between the EU and Ukraine. (https://www.consilium.europa.eu/en/meetings/international-ministerial-meetings/2022/09/05/).
Trust in the EU on the Rise: The Eurobarometer reported a rise in the trust in the EU amid support for the EU's response to Russia invasion of Ukraine and energy policies – 78% of Europeans support economic sanctions imposed by the EU on the Russian government, companies and individuals. Almost seven in ten interviewees (68%) are in favor of financing of supply and delivery of military equipment to Ukraine. The absolute majority of respondents are satisfied with the response of both the EU (57%) and their national government (55%). (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5266).
New Agreements on Closer Cooperation Between the EU and Ukraine on Customs and Taxation: The Commission has today signed two agreements between the EU and Ukraine which pave the way for Ukraine's participation in the EU's Customs and Fiscalis programs. This means that Ukraine will be able to take part in the activities of both programmes with EU Member States and other countries. (https://taxation-customs.ec.europa.eu/news/ukraine-new-agreements-closer-cooperation-between-eu-and-ukraine-customs-and-taxation-2022-09-05_en).
Ukraine to join the Common Transit Convention and the Convention on the Simplification of Formalities in Trade in Goods on 1 October 2022: Ukraine has been formally invited to join to the EU-Common Transit Countries' Convention on a Common Transit Procedure and the Convention on the Simplification of Formalities in Trade in Goods. (https://taxation-customs.ec.europa.eu/news/customs-ukraine-join-common-transit-convention-and-convention-simplification-formalities-trade-goods-2022-09-05_en).
Ukraine Wants More Russia Sanctions but Brussels Can't Help Anymore: Diplomats and officials say nobody wants to talk about a new sanctions package, after Hungary stalled the last one. (https://www.politico.eu/article/call-for-more-sanctions-against-russia-falls-on-deaf-ears-in-brussels/).
Hungary Backs Down on Push to Lift EU Sanctions on 3 Russian Oligarchs: Hungary has, for now, dropped its demand to lift sanctions imposed by the European Union on three Russian oligarchs — a push that had threatened to derail the process for renewing the penalties, as POLITICO had reported on Tuesday. Ahead of Wednesday's meeting of EU envoys, the Czech presidency of the Council of the EU reached an agreement with the Hungarians to avoid a blockade on the extension process by postponing the discussion on the three names to the next time the list must be reviewed in a couple of months. (https://www.politico.eu/article/hungary-backs-down-on-delisting-russian-oligarchs-for-now/).
Poland Joins Baltic Pledge To Ban Most Russians By Late September: On September 8, 2022, Poland, Estonia, Latvia, Lithuania have announced a "common approach" to ban access to their countries for most Russians with EU visas from later this month, moving all four beyond the curbs recently agreed by all 27 EU members. These measures address imminent public policy and security threats and restrict the entry into the Schengen area for the Russian citizens traveling for tourism, culture, sport and business purposes. However, the measures are "not an outright entry ban and commonly agreed legitimate exceptions will remain in force for dissidents, humanitarian cases," as well as a handful of other circumstances including diplomatic missions and familial links. (https://www.rferl.org/a/poand-baltics-ban-russians/32024490.html).
Week of August 29, 2022
EU Publishes Guidance for Execution of Contracts and Claims: On August 26, 2022, the European Commission updated its FAQ on execution of contracts and claims concerning sanctions adopted following Russia's military aggression against Ukraine and Belarus' support of the invasion. The Commission answered two questions relating to due payment and the exception allowing for the execution of a prior contracts (https://finance.ec.europa.eu/system/files/2022-08/faqs-sanctions-russia-execution-contracts-claims_en_0.pdf).
EU Publishes Guidance on Asset Freezes: On August 26, and August 30, 2022, the European Commission updated the FAQ on Asset Freezes. The Commission answered two questions relating to employment contracts and beneficial ownership. (https://finance.ec.europa.eu/system/files/2022-08/faqs-sanctions-russia-assets-freezes_en_1.pdf).
EU Publishes Guidance on Central Securities Depositories: On August 30, 2022, the European Commission updated the FAQ on Central Securities Depositories. The Commission answered a question relating to the transfer of equities from the NSD to an EU-based central securities depository. (https://finance.ec.europa.eu/system/files/2022-08/faqs-sanctions-russia-central-securities-depositories_en_0.pdf)
EU Publishes Guidance on Insurance and Reinsurance: On August 26, 2022, the European Commission updated the FAQ on Insurance and Reinsurance. The Commission answered a question relating to the provision of insurance services to persons and entities subject to individual financial measures. (https://finance.ec.europa.eu/system/files/2022-08/faqs-sanctions-russia-insurance_en_0.pdf).
EU Publishes Guidance on Import Purchase and Transfer of Listed Goods: On August 26, and August 29, 2022, the European Commission updated the FAQ on import, purchase and transfer of listed goods. The Commission answered four questions relating to goods destined to a third country, and to the exception allowing the execution of a prior contract until a specified date. (https://finance.ec.europa.eu/system/files/2022-08/faqs-sanctions-russia-listed-goods_en_0.pdf).
EU Publishes Guidance on Public Procurement Sanctions: On August 26, 2022, the European Commission updated the FAQ on public procurement sanctions. The Commission answered twelve questions relating inter alia to dual-citizenship, declarations of no Russian-involvement, general authorizations, authorization of already awarded contracts, the time to apply for authorization, the date of termination of contracts and the application of sanctions to nationals who have obtained refugee status, subcontracting. (https://finance.ec.europa.eu/system/files/2022-08/faqs-sanctions-russia-public-procurement_en_0.pdf).
EU Publishes Guidance on Oil Import Restrictions: On August 26, 2022, the European Commission updated the FAQ on Oil Import Restrictions. The Commission answered two questions relating to reporting obligations. (https://finance.ec.europa.eu/system/files/2022-08/faqs-sanctions-russia-oil-reporting-obligation_en_0.pdf).
Council Issues Joint Paper on EU Justice and Home Affairs Agencies Contribution to the EU Solidarity with Ukraine: The Council of the European Union circulated a product on the EU Justice and Home Affairs agencies contribution to the EU solidarity with Ukraine in line with the EU 10 points Plan and following the Justice and Home Affairs Agencies Network (JHAAN) 7th March Joint statement declaring the nine Agencies' commitment to provide assistance. (https://data.consilium.europa.eu/doc/document/ST-11905-2022-INIT/en/pdf).
EU Foreign Ministers Agree to Suspend Visa Facilitation Agreement: On 30 and 31 August 2022, Prague hosted an informal meeting of EU foreign ministers. The ministers primarily discussed two topics, namely the EU's relations with Africa and the Russian aggression against Ukraine. The main outcome of the meeting was agreement among the Member States to suspend the visa facilitation agreement. (https://czech-presidency.consilium.europa.eu/en/news/eu-foreign-ministers-agree-to-suspend-visa-facilitation-agreement/).
Hungary Signs New Gas Deal with Gazprom: Hungary signed a deal with Russia for additional gas supplies, government spokesperson Zoltan Kovacs said Wednesday. The agreement will send up to 5.8 million additional cubic meters of gas a day to Hungary. (https://www.politico.eu/article/hungary-signs-deal-with-gazprom-over-additional-gas/).
EU Wants to Train Ukraine's Army: EU officials want to up their training for Ukraine's military as it embarks on a counteroffensive — but progress on the European level is proving slow. The idea of an EU mission was discussed at an informal meeting of European defense ministers on Tuesday in Prague. And while the majority of ministers expressed support for the idea, there is still little clarity on the format and timeline for the project. (https://www.politico.eu/article/eu-ukraine-train-army/).
Gazprom Cuts Gas Deliveries to France's Engie: French utility Engie announced that Russian energy giant Gazprom will reduce gas deliveries over a contract disagreement. The company did not specify the reason for the dispute, but did say it "had already secured the volumes necessary to meet its commitment towards its customers and its own requirements," adding that measures were in place to reduce the potential "financial and physical impacts" of the disruption. (https://www.politico.eu/article/gazprom-reducing-gas-deliveries-to-engie-starting-tuesday/).
Total Sells Stake in Russian Project: On Friday (August 26), Total Energies announced that it had sold its 49 percent stake in the Termokarstovoye natural gas field to its Russian partner, PAO Novatek. The deal is expected to close next month. The move comes after Total spent most of the week defending its investment in the project, after news reports emerged that product from the project may have been used to fuel Russian fighter jets. (https://www.wsj.com/articles/totalenergies-sells-stake-in-russian-gas-field-11661529751).
Scholz Pitches Major EU Enlargement — with Reform: The EU should significantly expand but must first undergo fundamental reforms to ensure an enlarged bloc can still function, German Chancellor Olaf Scholz said Monday. Specifically, Scholz supported EU membership for Western Balkan countries, as well as war-torn Ukraine, neighboring Moldova and nearby Georgia. He also argued that EU members Croatia, Romania and Bulgaria have met the criteria for admission to Europe's Schengen area, which allows for easy, visa-free travel between countries. (https://www.politico.eu/article/scholz-eu-enlargement-reform-prague-charles-university/).
German Government Announces Fifth Floating LNG Terminal: Berlin has arranged for a fifth floating liquefied natural gas (LNG) terminal in order to increase the amount of LNG the country is able to import, which may be a boon to the country's landlocked neighbors. (https://www.euractiv.com/section/energy/news/german-government-announces-fifth-floating-lng-terminal/).
Gazprom Germania Prepares to be Nationalized: Welt am Sonntag reported on Sunday (August 28) that the German government has set up a holding company to carry out nationalization of Gazprom's German office, Gazprom Germania. Germany's energy regulator expressed its intent to nationalize Gazprom Germania in April. (https://www.reuters.com/business/energy/germany-prepares-possible-nationalisation-gazprom-germania-paper-2022-08-27/).
The EU Council Announced that 8 Countries Aligned Themselves with the Council Decision (CFSP) 2022/1355: On August 25, 2022, the EU Council announced that the candidate countries North Macedonia, Montenegro, Albania and Ukraine, the potential candidate country Bosnia and Herzegovina, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, aligned themselves with the Council Decision (CFSP) 2022/1355. The Decision extends the list of persons, entities and bodies subject to restrictive measures for their role in undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. (https://www.consilium.europa.eu/en/press/press-releases/2022/08/25/declaration-by-the-high-representative-on-behalf-of-the-eu-on-the-alignment-of-certain-countries-concerning-restrictive-measures-in-respect-of-actions-undermining-or-threatening-the-territorial-integrity-sovereignty-and-independence-of-ukra/).
The President of the EU Council Charles Michel and the President of the European Commission Addressed the 2nd Crimea Platform Summit: On 23 August 2022 the EU Council President Charles Michel and the President of the European Commission Ursula Von der Leyen addressed the 2nd Crimea Platform Summit. The leaders declared that the EU does not recognize the illegal annexation of Crimea and is solid in its support for Ukraine's sovereignty and territorial integrity. They stated that sanctions are critically undermining Putin's war machine and the Russian economy and the European Union will continue to stand with Ukraine for as long as it takes. (https://www.consilium.europa.eu/en/press/press-releases/2022/08/23/address-by-president-michel-to-the-2nd-crimea-platform-summit-23-august-2022/).
EU Leaders Continue Discussion of the Russian Visa Restrictions in View of the Upcoming EU Foreign Ministers Meeting on August 31: Czech Foreign Minister Jan Lipavský clarified that "no one is calling for [a] general ban on Russians traveling to Europe — we are talking about Russian tourists and tourist visas," noting that his country had not stopped issuing visas to Russians for humanitarian reasons. Meanwhile, the U.K., Defense Secretary Ben Wallace suggested on Wednesday that Britain may tighten visa conditions for Russians, but also expressed doubts about a total tourist ban. (https://www.politico.eu/newsletter/brussels-playbook/economic-trouble-hungary-vs-commission-greek-spying-latest/).
Bulgaria Risks a Relapse into its Addiction to Russia's Gazprom: A caretaker government that assumed power this month is sparking fears that Sofia will revert to buying its energy supplies from Gazprom after a recent push to break free from dependence on Russia. It's a stark U-turn from the short-lived government of Prime Minister Kiril Petkov, which had an unusually confrontational position on Russia after the invasion of Ukraine, but fell after a vote of no confidence at the end of June. This week, the Energy Minister Rossen Hristov said Bulgaria had no choice but to restart talks with Gazprom. (https://www.politico.eu/article/bulgaria-risks-a-relapse-into-its-addiction-to-russias-gazprom/).
Spot Gas Prices Rose to a High of €292 per Megawatt Hour on Monday: The price surge was triggered by Gazprom's announcement that it would stop supply through the Nord Stream pipeline — again — at the end of the month for three days of "maintenance" for a gas turbine. Europe and Russia have been bickering over the issue of gas turbines. Gazprom has insisted that Western sanctions are to blame for Nord Stream operating at reduced capacity — saying that one of the turbines required could not be transported back to Russia after maintenance in Canada. (https://www.politico.eu/article/gazprom-russia-schedules-three-day-maintenance-at-nord-stream-europe/).
Vice President of the German Parliament Calls for Nord Stream 2 to be Started: Vice president of the German parliament Wolfgang Kubicki said that Germany should allow the blocked Nord Stream 2 pipeline to begin pumping Russian natural gas so "people do not have to freeze in winter and that our industry does not suffer serious damage." He said there is "no sound reason not to open Nord Stream 2," because Germany is already getting gas through the older Russia-to-Germany Nord Stream pipeline. Several FDP members criticized Kubicki's remarks. "Nord Stream 2 is dead," said Marie-Agnes Strack Zimmermann, an FDP lawmaker who chairs the Bundestag's defense committee. (https://www.politico.eu/article/vice-president-of-the-german-parliament-calls-for-activation-of-nord-stream-2/).
Italian Prime Minister Mario Draghi Calls for EU Price Cap on Russian Gas: European Union countries should agree a cap on the price of gas imported from Russia to help ease the burden of rising prices on businesses and households, Italian Prime Minister Mario Draghi said on Wednesday. Draghi accused Russia of using gas supplies as a weapon against Ukraine and its European allies after its invasion six months ago, a charge Moscow denies. Draghi said the issue would be discussed at the next meeting of EU leaders and he also called for steps to be taken to decouple the gas price from the price charged for electricity. (https://www.euractiv.com/section/energy/news/italys-draghi-calls-for-eu-price-cap-on-russian-gas/).
French Transport Minister Demands Probe into TotalEnergies' Reported Links to Russian army Refueling: French Transport Minister Clément Beaune on Thursday called for an investigation on whether gas exported by oil giant TotalEnergies has been used to fuel fighter jets used by the Russian army in Ukraine. The call follows a report from Le Monde with the NGO Global Witness, which links the French firm's remaining activities in Russia with refueling operations in military bases in southwestern Russia. "This is an extremely serious matter," Beaune told France 2, "so there needs to be a check on whether, willingly or not, there's been a bypass on sanctions or a diversion of the energy that a company, French or not, would produce." (https://www.politico.eu/article/france-transport-minister-clement-beaune-probe-totalenergies-russia-army-jet-refueling/).
The Hague Seeks Exemption from EU Sanctions against Russia: The Dutch city of The Hague said it would ask for a temporary exemption of EU sanctions against Russia, as it struggles to find a replacement for its contract with Russian gas supplier Gazprom in time. Sanctions imposed by the European Union against Russia following its invasion of Ukraine order governments and other public bodies to end existing contracts with Russian companies by October 10. The city said it held an EU-wide tender in June and July, but failed to attract any bids from potential suppliers. (https://www.reuters.com/world/europe/dutch-city-hague-seeks-exemption-eu-sanctions-against-russia-2022-08-25/).
Sanctions Effectively Halt Russian Seaborne Coal Exports: Bloomberg reported on Thursday that Suek JSC, Russia's largest thermal coal mining company, has been unable to ship coal since mid-August as a result of the EU's ban on Russian coal purchases and subsequent bans on services that would permit the shipment of Russian coal. (https://www.bloomberg.com/news/articles/2022-08-24/russian-seaborne-coal-exports-effectively-halted-by-eu-ban).
EU High Representative Makes Declaration on the Anniversary of the Fraudulent Presidential Elections in Belarus: On 8 August 2022, Josep Borell, the EU High Representative made a declaration on the second anniversary of the 9 August 2020 fraudulent presidential elections in Belarus. The High Representative called on the authorities in Belarus to fully adhere to the principles of democracy and the rule of law, respect human rights and fundamental freedoms, and act in compliance with international law and Belarus' own commitments, including by stopping its collaboration in Russia's war of aggression against Ukraine. Mr. Borell also called for the immediate and unconditional release and rehabilitation of all political prisoners, and for the cessation of repression. (https://www.consilium.europa.eu/en/press/press-releases/2022/08/08/belarus-declaration-by-the-high-representative-on-behalf-of-the-eu-on-the-second-anniversary-of-the-fraudulent-presidential-elections/).
Commission Approves EUR 149 Million Romanian State Aid Scheme: The European Commission has approved, under EU State aid rules, a EUR 149 million Romanian scheme made available through the Recovery and Resilience Facility to support the production of renewable hydrogen. The measure aims to contribute to the development of renewable hydrogen in line with the objectives of the EU Hydrogen Strategy and the EU Green Deal. The scheme will also contribute to the objectives of the REPowerEU Plan to reduce dependence on Russian fossil fuels and fast forward the green transition. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4865).
Commission Approves Italian State Aid Scheme: The European Commission has approved, under EU State aid rules, an Italian scheme made available through the Recovery and Resilience Facility to support the construction and the operation of new or converted biomethane production plants. The measure is part of Italy's strategy to reduce greenhouse gas emissions and to increase its share of renewable energies. The scheme will also contribute to the objectives of the REPowerEU Plan to reduce dependence on Russian fossil fuels and fast forward the green transition. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4803).
EU High Representative Condemns Military Activities Around Zaporizhzhia Nuclear Power Plant:According to the High Representative, the military activities around Zaporizhzhia is a serious and irresponsible breach of nuclear safety rules and another example of Russia's disregard for international norms. The High Representative also said the International Atomic Energy Agency must gain access. (https://twitter.com/JosepBorrellF/status/1555858270589538305).
Four More Russian Billionaires Lose Cypriot Citizenship Following EU Sanctions: Authorities in Nicosia have announced that four more Russian billionaires will lose their citizenship in Cyprus, acquired through the Golden Passport scheme, after they have been blacklisted by the EU following the latter's sanctions imposed on Russia due to the invasion of Ukraine. (https://www.schengenvisainfo.com/news/four-more-russian-billionaires-lose-cypriot-citizenship-following-eu-sanctions/).
German Government Stands by Russia Sanctions Amid High Energy Prices: In a press conference, a German government spokesman stated, "[w]e face difficult months ahead…but it is clear that we stand firmly on the side of Ukraine and we stand behind the sanctions that we agreed together with the European Union and the international community". The spokesperson also dismissed the possibility of approval of the Nord Stream 2 pipeline. (https://www.reuters.com/world/europe/germany-stands-by-russia-sanctions-despite-gas-crisis-govt-spokesperson-2022-08-08/).
Siemens Energy Rebuts Russian Statements Regarding Repaired Nord Stream Turbine: Amid claims by Russian officials that western sanctions are preventing the return of the repaired Nord Stream 1 turbine to Russia, Siemens Energy CEO Christian Bruch denied any technical or paperwork restrictions were holding up delivery of the repaired turbine to Russia. (https://www.cnbc.com/2022/08/08/russia-gas-siemens-energy-ceo-says-turbine-dispute-is-not-our-fault.html).
Siemens Energy Blames Wind Down of Russia Business for Significant Losses: On Monday, Siemens Energy attributed a 200 million euro ($204 million) charge related to the wind-down of its Russian business, but noted it was still ready to deliver the repaired Nord Stream 1 turbine to Russia. (https://www.reuters.com/business/siemens-energy-warns-deeper-net-loss-over-russia-restructuring-2022-08-08/).
Netherlands-based Veon Ltd. May Halt Network Rollout in Russia as a Result of Technology Transfer Restrictions: In an interview after Veon's Earnings report, Chief Executive Officer Kaan Terzioglu noted that as a result of equipment-related restrictions, "[t]here is no doubt that the deployment will slow down and almost has a risk of coming to a standstill." (https://www.bloomberg.com/news/articles/2022-08-08/sanctions-may-freeze-veon-s-network-rollout-in-russia-ceo-says).
Polish Border Area Between Belarus and Kaliningrad Faces Security Alert: On Sunday, The Wall Street Journal published a profile on the Suwalki gap, a border region in northern Poland between the Russian exclave of Kaliningrad and Belarus. NATO officials now view the area as a security threat, as Russia expands its territorial ambitions due to the war in Ukraine. Locals living in towns in the Sulwaki gap interviewed for the piece expressed increase security concerns and are prepared to leave in a moment's notice. (https://www.wsj.com/articles/russia-poland-lithuania-kaliningrad-nato-suwalki-gap-11659719169).
European Economic Anxiety Increases: The Wall Street Journal reported on Monday that, despite a brief respite in the summer tourism season, European governments are prepared for a coming downturn, due in part to energy restrictions and sanctions on Russia. Polling indicates a growing regional split, with Eastern EU members expressing a will to maintain sanctions no matter the cost, and Western EU countries growing more concerned about the economic fallout of the policies. However, EU experts like Thorsten Benner, head of the Global Public Policy Institute, believe that the EU will maintain sanctions on Russia as long as the US expresses support for them. (https://www.wsj.com/articles/europe-steels-itself-to-maintain-economic-pressure-on-russia-despite-pain-11659957048).
VTB Prevails In Dispute on Sanctions: The French bank Crédit Agricole refused to transfer the repayment of a loan from Côte d'Ivoire to the European subsidiary of the Russian bank VTB following instructions from the French government. According to les Echos, a European decision has ruled in favor of the German supervisor's position, and despite the freezing of assets, French banks will be able to transfer capital to VTB Europe in Frankfurt. (https://www.lesechos.fr/finance-marches/banque-assurances/sanctions-bras-de-fer-entre-credit-agricole-et-la-filiale-europeenne-du-russe-vtb-1774975; https://www.lesechos.fr/finance-marches/banque-assurances/sanctions-la-filiale-du-russe-vtb-obtient-gain-de-cause-face-aux-autorites-francaises-1780308).
Commission Approves EUR 110 Million Austrian Scheme to Support Agricultural Producers in Context of Russia's Invasion of Ukraine: The European Commission has approved a €110 million Austrian scheme to support primary agricultural producers in the context of Russia's invasion of Ukraine. The scheme was approved under the State aid Temporary Crisis Framework. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4827).
Commission Approves up to EUR 30 million Greek Scheme to Support Companies in the Context of Russia's Invasion of Ukraine: The European Commission has approved an up to €30 million scheme to support companies in the context of Russia's invasion of Ukraine. The scheme was approved under the State aid Temporary Crisis Framework (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_4883).
EU Plans Mix of Grants and Loans to Aid Ukraine: A new draft proposal by the European Commission would provide EUR 8 billion in financial aid to Ukraine through a mix of grants and loans, two EU officials told POLITICO Friday. The EU would disburse up to EUR 5 billion as long-term loans leveraged on the back of guarantees provided by EU countries, according to their contribution to the bloc's budget. Interest payments would be subsidized by the EU's budget. The remaining amount, around EUR 3 billion, would be provided as grants, the officials said. (https://www.politico.eu/article/commission-stay-mum-ukraine-zelenskyy-lashe-out-eu-aid-delay/).
European Commission Disputes Russian Claim that EU Sanctions are Prohibiting Return of Repaired Nord Stream 1 Turbine: Disputing Russian claims that EU sanctions are preventing the return of a repaired Nord Stream 1 turbine to Russia, Eric Mamer, chief spokesperson of the European Commission stated, "[t]here is nothing in the sanctions that prohibits the turbine, which is the Siemens turbine, currently meant for Russia, to go there." Siemens, the maker of the engine, has also disputed the Russian claim. (https://www.rferl.org/a/russia-siemens-turbine-gazprom-sanctions/31975395.html).
EU Imposes Restrictive Measures on Viktor and Oleksandr Yanukovych: The Council of the European Union today decided to impose restrictive measures on two additional individuals in response to the ongoing unjustified and unprovoked Russian military aggression against Ukraine. The Council added the pro-Russian former President of Ukraine Viktor Fedorovych Yanukovych and his son Oleksandr Viktorovych Yanukovych to the list of persons, entities and bodies subject to restrictive measures. (https://www.consilium.europa.eu/en/press/press-releases/2022/08/04/russia-s-aggression-against-ukraine-the-eu-imposes-restrictive-measures-on-viktor-and-oleksandr-yanukovych/).
Commission Welcomes International Condemnation of Russia for Violation of Aviation Rules and EU Sanctions: On Thursday, the Commission welcomed the decision by the International Civil Aviation Organization ("ICAO") to call on the Russian Federation to immediately cease its infractions of international aviation rules, in order to preserve the safety and security of civil aviation. The ICAO decision refers to the violation of Ukraine's sovereign airspace in the context of Russia's war of aggression, and to the deliberate and continued violation of several safety requirements in an attempt by the Russian government to circumvent EU sanctions. These actions include illegally double-registering in Russia aircraft stolen from leasing companies, and permitting Russian airlines to operate these aircraft on international routes without a valid Certificate of Airworthiness, which is the necessary safety certificate. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4746).
Commission Approves EUR 31 Million Investment to Support Economic Recovery of Four Polish Regions: The Commission has approved an investment of more than €31 million through REACT-EU under the European Regional Development Fund (ERDF) for four Polish regions to strengthen their economy and the health and social infrastructure along with measures to welcome people fleeing the war in Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_4863).
Commission Approves EUR 407 Million Italian Scheme to Support Companies of Certain Municipalities in the Context of the Coronavirus Pandemic and Russia's Invasion of Ukraine: The European Commission has approved a €407 million Italian scheme to support companies active in the municipalities affected by the earthquakes of 2009 and 2016 in the context of the coronavirus pandemic and Russia's invasion of Ukraine. The scheme was approved under the State aid Temporary Framework and Temporary Crisis Framework. The scheme will be open to companies of all sizes that are located in certain municipalities of the regions of Lazio, Umbria, Marche and Abruzzo. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_4863).
Russia's Gazprom Says Other Nord Stream Gas Turbines Also Face Sanctions Block: Amid a standoff on the return of a repaired gas turbine for the Nord Stream 1 pipeline and allegations from Russia that Western sanctions are preventing its return to Russia, Russia's state-controlled Gazprom said on 4 August that the risk of a sanctions impact related to the maintenance of key Nord Stream gas turbines also concerned three units currently awaiting overhaul. (https://www.reuters.com/business/energy/kremlin-says-gazprom-would-like-nord-stream-turbine-back-needs-documents-2022-08-04/).
Estonia Calls for EU-Wide Ban on Visas for Russian Citizens: During a recent trip to Kyiv, Estonian Foreign Minister Urmas Reinslau called on the EU to add a total ban on EU visas for Russian citizens in the next round of sanctions targeting the Kremlin. To date, certain EU member states have declined to issue Russian visas, but no bloc-wide action on the issue has been taken. (https://www.bloomberg.com/news/articles/2022-08-04/estonia-s-top-diplomat-wants-eu-wide-ban-on-russian-visas).
Scholz Says Russia Is Blocking Shipment Of Turbine Needed To Hike Gas Flows: After Kremlin spokesman Dmitry Peskov stated that Gazprom continues to lack requisite documentation for reinstallation of the repaired Nord Stream 1 turbine received from Russia, German Chancellor Olaf Scholz accused Moscow of purposely holding up the delivery of a turbine by refusing to submit the paperwork needed to transport the item to Russia, where its installation will allow for increased gas supplies via the Nord Stream 1 pipeline. (https://www.rferl.org/a/germany-scholz-turbine-russia-nord-stream/31971861.html).
Finnish Customs Reports Technical Equipment Confiscated at Russia-Finland Border: On Wednesday, Finnish Customs announced that it recently intercepted goods that "can promote Russia's industrial and military capabilities, such as aids used in navigation", along with sonar, drones, and chartplotters at the Finnish border. Director of Enforcement Mikko Gronberg did not provide the nationality of the persons transporting the items, or specifics on the number of violations committed. (https://yle.fi/news/3-12561927).
Bulgaria Negotiating with Gazprom Regarding Future Gas Shipments: Interfax reported on Wednesday that Bulgargaz is in negotiations with Gazprom to resume shipments of natural gas, though it is seeking to revise the contract under which it previously received gas from Gazprom. The Russian gas company shut off shipments to Bulgaria in April due to its refusal to pay for gas in rubles. (https://www.interfax.ru/business/855052) (article in Russian).
Societe Generale Posts Second Quarter Earnings Showing Loss of Russian Business: On Wednesday, French bank Societe Generale reported a net loss of 1.48 billion Euros, with a 3.3 billion Euro loss due to its exit from Russian operations, for the second quarter of 2022. However, the result is better than the 2.85 billion loss analysts expected, as every unit grew in the second quarter. (https://www.cnbc.com/2022/08/03/socgen-earnings-q2-2022.html).
French Opposition Leader Marine Le Pen Opposes Sanctions Regime: During a press conference on Wednesday, French far right leader Marine Le Pen called sanctions on Russia "useless", since they are making ordinary Europeans suffer while the Russian economy "is not on its knees." She warned that, if they are not lifted soon, "Europe is going to face a blackout, notably on the question of Russian gas imports." (https://www.rfi.fr/en/france/20220803-french-far-right-leader-le-pen-calls-for-an-end-to-sanctions-against-russia).
French President Says Russia will Face Justice for Prisoner of War Massacre: French President Emmanuel Macron told his Ukrainian counterpart Volodymyr Zelenskyy in a phone call Monday that France will support criminal investigations over the bombing last week of a jail holding Ukrainian prisoners of war. (https://www.politico.eu/article/macron-promise-zelenskyy-russia-face-justice-pow-massacre/).
Calls Grow for Investigation of POW Bombing in Ukraine: EU foreign affairs chief Josep Borrell condemned "in the strongest possible terms" the shelling and said the EU would support a probe into the bombing." In a Friday statement, Borrell said, "The European Union actively supports all measures to ensure accountability for human rights violations and violations of international humanitarian law committed during the Russian aggression in Ukraine." He added that "the perpetrators … will be held accountable." (https://www.politico.eu/article/ukraine-russia-war-volodymyr-zelenskyy-deliberate-war-crime-pow-bombing/).
Latvia Urges Terror Sponsor Label for Russia: The EU should designate Russia as a state sponsor of terrorism, Latvian Foreign Minister Edgars Rinkēvičs said, after an attack that killed dozens of Ukrainian prisoners of war on Friday renewed calls to further isolate Moscow on the international stage. (https://www.politico.eu/article/latvia-russia-ukraine-war-state-sponsor-of-terror-edgars-rinkevics/).
Greeks Pitch New Electricity Market Model as Fight over Market Reform Intensifies: In a 26 July emergency meeting, Greece presented its proposal, which seeks to bifurcate electricity markets, putting renewables, nuclear and flow hydro into one basket, and fossil fuel generation and stored hydro into another. Currently, the EU electricity market prices electricity based on the most expensive source of electricity in the mix. (https://www.euractiv.com/section/energy/news/greeks-pitch-new-electricity-market-model-as-fight-over-market-reform-intensifies/).
Former Leader of Russian Tech Company Yandex Sues the EU Over Sanctions: Former Yandex Executive Director and Deputy CEO Tigran Khudaverdyan challenged EU sanctions against him over the Ukraine war on June 7, stating that the EU should lift its "discriminatory and disproportionate" sanctions against him, which were imposed for his role in Russian disinformation efforts. (https://www.themoscowtimes.com/2022/08/02/ex-yandex-head-takes-eu-to-court-over-sanctions-a78480).
Clothing Store H&M Briefly Reopens in Russia for Sell-Off of Inventory: Western clothing retailer H&M, which previously announced its departure from the Russian market, briefly reopened Russian stores to sell off inventory, leading to long lines. (https://www.themoscowtimes.com/2022/08/02/muscovites-line-up-outside-hm-as-stores-reopen-for-final-sell-off-a78484).
Wife of Irish President Causes Controversy With Public Letter to Russia and Ukraine to End War: Sabrina Higgins, the wife of the Irish President who is anti-war, stirred controversy by a letter published in the Irish Times and briefly posted on the presidential website, where she called for a negotiated end to the war in Ukraine. The letter has since been removed from the Irish President's website. (https://www.ft.com/content/ba11ee11-2d8d-4e9d-bca5-7b73ef63d9fd).
Gazprom Stops Latvia's Gas in Latest Russian Cut to EU: Russian energy giant Gazprom says it has suspended gas supplies to Latvia – the latest EU country to experience such action amid tensions over Ukraine. Gazprom accused Latvia of violating conditions of purchase, but gave no details of that alleged violation. Latvia relies on neighboring Russia for natural gas imports, but its government says it does not expect Gazprom's move to have a major impact. (https://www.bbc.co.uk/news/world-europe-62359890).
EU Council Issues a Summary of EU Sanctions Against Russia: On 1 August 2022, the Council of the European Union Published a summary of the different types of sanctions adopted by the EU against Russia. (https://www.consilium.europa.eu/en/policies/sanctions/restrictive-measures-against-russia-over-ukraine/sanctions-against-russia-explained/).
European Commission Disburses First Tranche of the New EUR 1 Billion Macro-Financial Assistance for Ukraine: The European Commission, on behalf of the EU, has today disbursed the first half (€500 million) of a new €1 billion macro-financial assistance (MFA) operation for Ukraine. The second tranche (another €500 million) will be disbursed tomorrow, 2 August. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4783).
Commission Approves €181.5 Million Latvian Schemes to Support Companies in Context of Russia's Invasion of Ukraine: The European Commission has approved two Latvian schemes with a total budget of €181.5 million to support small and medium-sized enterprises and large companies across sectors in the context of Russia's invasion of Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4614).
Commission Approves €600,000 Flemish Scheme to Support the Fishery Sector in the Context of Russia's Invasion of Ukraine: The European Commission has approved a €600,000 Flemish scheme to support the fishery sector in Flanders in the context of the Russian invasion of Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_4802).
Finland Under Critics for Being the Entry Point of Russian in Europe The Finnish government is coming under increasing public and political pressure to close the EU's eastern border with Russia, and put a stop to an apparent sanctions loophole. Russia relaxed its COVID-related border restrictions mid-July, meaning for the first time since before the pandemic, Russians with Schengen visas can now legally cross the border by bus or car, even though they're banned from travelling to the EU in planes and trains. (https://www.euronews.com/my-europe/2022/07/30/the-russians-have-started-coming-finland-considers-tourist-visa-ban).
Cyprus Tourism Rebounds Despite Reduction in Tourists from Sanctions-Hit Russia: This year, Cyprus expected 800,000 Russian tourists; the Russian market, however, "was wiped out from one day to the next" following EU Sanctions. From January to June, Cyprus still recorded 1.2 million visitors, nearly five times the level of last year. But that is still 25 percent down on the same period of 2019, when 1.63 million tourists came to Cyprus. (https://www.france24.com/en/live-news/20220731-cyprus-tourism-rebounds-despite-sanctions-hit-russia-plunge).
EU Member States Slash Purchase Of Russian Gas By 50% Since War Started: The European Union's foreign policy chief, Josep Borrell on Friday lashed out at Russia for hurling unsubstantiated claims that it has been supplying the European countries with "as much gas as possible amid the energy crisis". Borrell, in an interview with the German public broadcaster DW, said that the EU member states have slashed their energy imports by an estimated 50% since Moscow launched its all-out invasion of the Ukraine. (https://www.republicworld.com/world-news/russia-ukraine-crisis/eu-member-states-slash-purchase-of-russian-gas-by-50-percent-since-war-started-josep-borrell-articleshow.html).
Poland Supports Banning Issuance of Visas for All Russians: The Polish government fully supports a proposal by the Estonian authorities for a European Union-wide entry ban on Russian tourists and other types of travelers from this country as a part of sanctions imposed on Russia due to the latter's war in Ukraine. (https://www.schengenvisainfo.com/news/poland-supports-banning-issuance-of-visas-for-all-russians/).
EU Cannot Completely Ban Issuance of Schengen Visas to Russian Nationals: The Commission of the European Union has said that it cannot decide to limit the issuance of Schengen visas to Russian citizens after the sanctions are aimed at the Russian authorities as well as the elite; however, such measures can be taken independently by the EU Member States. (https://www.schengenvisainfo.com/news/eu-cannot-completely-ban-issuance-of-schengen-visas-to-russian-nationals/)
EU Commission Issues FAQ on Medicine and Medical Devices: On 29 July 2022, the Commission issued as FAQ on medicines and medical devices replying to 11 different questions. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-medical_en.pdf).
Commission Approves EUR 2.9 Billion Italian Scheme to Support Companies in the Context of Russian Invasion of Ukraine: The European Commission has approved a €2.9 billion Italian scheme to support the liquidity needs of companies in the context of Russia's invasion of Ukraine to provide liquidity support to small and medium-sized enterprises and small mid-caps. Under the scheme, the aid will take the form of (i) guarantees covering part of new eligible loans granted by commercial banks; and (ii) direct grants covering the guarantee premiums. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4723).
Finland Largest Parliamentary Group Backs Limitation on Issuance of Tourist Visas to Russian: The largest group in the Finnish Parliament would be prepared to limit the issuance of tourist visas to Russians, reports Helsingin Sanomat. Finland has continued to issue the visas as usual despite the war of aggression waged by Russia in Ukraine, unlike for example Estonia, Latvia and Lithuania. With the EU prohibiting Russian aircraft from using its airspace, Finland is offering Russians a gateway to other parts of Europe. (https://www.helsinkitimes.fi/finland/finland-news/politics/21930-finland-s-largest-parliamentary-groups-back-limiting-visas-issued-to-russians.html).
EU Sanctions Are Not Targeting Ordinary Russians, EU Commission Says: An EU Commission Spokesperson stressed to Helsingin Sanomat that the EU has targeted its sanctions primarily and specifically at the central government and elites in Russia, rather than ordinary Russians. This statement follows a question on a possible EU-wide decision to suspend the issuance of tourist visas to Russia. According to the Commission, the EU's visa rules do not allow for the complete suspension of visa issuance and applications for Schengen visas should be evaluated and processed by each member state on a case-by-case basis. (https://www.helsinkitimes.fi/finland/finland-news/domestic/21956-eu-s-sanctions-not-targeted-at-ordinary-russians-european-commission-tells-hs.html).
Orban Suggests New EU-Hungary Gas Deal This Summer: On Friday, Prime Minister Viktor Orbán said to local state radio that Hungary is "negotiating with the Russians … this deal can be signed during the summer, and then we will be safe…Hungary will have enough gas," as part of a deal that would reportedly provide an additional 700 million cubic meters of gas to Hungary. This follows a visit last week by Hungarian Foreign Minister Péter Szijjártó to Moscow for meetings with Russian Foreign Minister Sergey Lavrov (https://www.politico.eu/article/orban-hungary-to-strike-new-gas-deal-with-russia-this-summer/).
New York Times Profiles German Energy Conservation Efforts: On Friday, The New York Times published an article detailing measures Germans are taking to conserve energy, including shutting off traffic lights, reducing air conditioning, and brewing less beer, among other activities. However, municipal officials were unsure if these efforts would stave off sharper reductions in Russian gas imports, which would severely damage the German economy. (https://www.nytimes.com/2022/07/29/world/europe/europe-germany-ukraine-energy.html).
Commission Amends TEN-T Proposal to Reflect Infrastructure Impacts of Russia's Aggression Against Ukraine: The Commission has amended its December 2021 proposal, under discussion by the European Parliament and the Council, to revise the EU's Trans-European Transport Network (TEN-T). TEN-T aims at building an effective, EU-wide and multimodal transport network across the EU. The update proposal extends four European Transport Corridors to Ukraine and the Republic of Moldova and removes Russia and Belarus from the TEN-T maps.(https://transport.ec.europa.eu/news/commission-amends-ten-t-proposal-reflect-impacts-infrastructure-russias-war-aggression-against-2022-07-27_en).
Council Issues Common Message on the Humanitarian Situation in Ukraine: The Council working party on Humanitarian Aid and Food Aid issued a common message strongly condemning inter alia the indiscriminate and deliberate attacks on civilians and civilian infrastructure, any form of gender-based violence, including conflict-related sexual violence, abuse and harassment, any Rape and other forms of sexual violence.(https://data.consilium.europa.eu/doc/document/ST-11618-2022-INIT/en/pdf).
EU Commission Issues Document on EU Agri-Food Trade: The EU issued a document on agri-food trade in which it underlines that following Russia's invasion of Ukraine, maize imports from Ukraine fell dramatically in March and April (-35% year on year), as did those from Serbia (-77%). Maize imports from the US, Canada, Moldova and Brazil have partially compensated for this disruption to the supply chain. (https://agriculture.ec.europa.eu/news/notable-developments-eu-agri-food-trade-amid-global-uncertainties-2022-07-28_en).
Commission Replies to Parliamentary Question on Russian Sanctions Against the EU: Commissioner Simson replied to a parliamentary question on the impact of Russian embargoes against EU companies and the measures that will be taken in response. The Commission underlines that several companies have been placed by the German Government under fiduciary administration. The European Union has made a decision to end its dependence on Russian gas, as reflected in the REPowerEU plan. In parallel, preparations for a possible serious disruption of gas flows from Russia have been ongoing since the beginning of 2022 and the EU is accelerating the green transition and ensuring an interconnected and resilient energy system, by speeding up renewable energy deployment. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001846_EN.html & https://www.europarl.europa.eu/doceo/document/E-9-2022-001846-ASW_EN.html).
Are EU Sanctions Against Russia Enforceable?: The lack of EU sanctions enforcement was evident for a long time, the EU finally decided to handle it. The effectiveness of sanctions pressure depends much more on their enforceability.(https://visegradinsight.eu/eu-sanctions-russia-ukraine/).
European Parliament Chief to Ukraine MPs: We Will Aid 'Every Step' of EU Did: Roberta Metsola, the President of the European Parliament pledged to help Kyiv along its accession path but the ultimate decision will also lie with EU members. (https://www.politico.eu/article/eu-parliament-roberta-metsola-ukraine-membership/)
Estonia Bans Entry for Members of Russian Pop Music Group Ruki Vverh: The Estonian authorities have decided to ban entry to the members of the Russian pop music group Ruki Vverh. The decision regarding the ban of the Russian pop music group was announced by the Estonian Minister of Foreign Affairs, Urmas Reinsalu. (https://www.schengenvisainfo.com/news/estonia-bans-entry-for-members-of-russian-pop-music-group-ruki-vverh/).
Sanctions 'Catastrophically Crippling' Russian Economy, Study Finds: Russia has lost companies representing about 40% of its GDP, reversing nearly all of three decades worth of foreign investment. More than 1,000 companies have curtailed their operations in Russia or exited the country entirely since the start of the Ukraine war, across almost every industry from fashion to finance. (https://www.euronews.com/2022/07/28/sanctions-catastrophically-crippling-russian-economy-study-finds & https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4167193).
European Natural Gas Prices Fall as Russian Supply Steadies: European natural gas prices fell today as the flow of Russian gas stabilized. Gas futures dropped by 3.1% after increasing 33% over the past six days. Although the supply of Russian gas remains low, experts do not expect Russia to completely cut off supply to Europe. (https://www.bloomberg.com/news/articles/2022-07-28/european-gas-prices-ease-as-russia-flows-hold-at-curbed-levels).
Germany Announces Energy Surcharge on Households: As European gas prices remain near record highs, German officials announced today that consumers will begin paying a €1000 annual energy levy this fall. Berlin had sought to avoid passing on rising energy costs to consumers, but the government now finds the surcharge necessary to deal with its limited natural gas supply. (https://www.bloomberg.com/news/articles/2022-07-28/german-consumers-face-gas-bill-surge-with-move-to-pass-on-costs).
Estonia Blocks Russians From Obtaining Student Visas: Today, Estonia announced that it will no longer allow Russian nationals to obtain visas or temporary resident permits to study in the country. Estonia also announced that it is prohibiting the short-term employment of Russians and Belarusians who hold legal resident permits from other EU states. (https://www.themoscowtimes.com/2022/07/28/deadly-russian-strikes-target-military-bases-in-central-ukraine-a78433).
Macron Calls Russia "One of the Last Imperial Colonial Powers": During his visit to Benin Wednesday, French President Emmanuel Macron called Russia "one of the last imperial colonial powers." The French leader branded Russia as such because of its continued invasion of a neighboring country to expand its territorial control. (https://www.france24.com/en/africa/20220728-marcon-calls-russia-one-of-last-imperial-colonial-powers-in-benin-visit).
EU Adopts Guidance on Gold Imports: On July 27, 2022, the European Commission published an FAQ on gold import answering 4 different questions. (https://ec.europa.eu/info/files/faqs-sanctions-russia-gold-imports_en).
EU Updates Guidance on Aviation Related Matters: On July 27, 2022, the European Commission updated the FAQ on Aviation Related Matters. The Commission added two questions on the exemption for the sharing of technical information in the framework of the ICAO. (https://ec.europa.eu/info/files/faqs-sanctions-russia-aviation_en).
The EU General Court Dismissed Russia Today France's Action Against EU Sanctions: The Grand Chamber of the General Court dismissed RT France's application for annulment of acts of the Council, adopted following the outbreak of the war in Ukraine, temporarily prohibiting that organization from broadcasting content. This is the first ruling given by the Grand Chamber under the expedited procedure. (https://curia.europa.eu/jcms/upload/docs/application/pdf/2022-07/cp220132en.pdf;https://curia.europa.eu/juris/liste.jsf?language=en&td=ALL&num=T-125/22).
EU High Representative Answered Parliamentary Question on Misappropriation of Arms: The EU High Representative answered a parliamentary question on how to guarantee that arms delivered to Ukraine will not be misappropriated. The High Representative underlined that the final decision on whether to authorize or deny an individual export or transit of military equipment is adopted by the competent authorities of EU Member States, which notably assess the risk of diversion. (https://www.europarl.europa.eu/doceo/document/E-9-2022-002054_EN.html;https://www.europarl.europa.eu/doceo/document/E-9-2022-002054-ASW_EN.html).
Commission Answered Parliamentary Question on the Amount of EU Aid to Ukraine: According to the Commission, from the start of Russia's war of aggression to date, the Commission has mobilized around EUR 6.4 billion for Ukraine's overall economic, social and financial resilience in the form of MFA, budget support, emergency assistance, crisis response and humanitarian aid. The Commission intends to propose an exceptional Macro Financial Assistance loan of up to EUR 9 billion to help Ukraine to address its immediate financial needs. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001836_EN.html; https://www.europarl.europa.eu/doceo/document/E-9-2022-001836-ASW_EN.html).
Nord Stream's Turbine Tussle Puts Spotlight on Equipment: The bickering over a turbine Moscow says is to blame for a reduction of gas flows via Nord Stream 1 has put into focus the equipment the pipeline needs to operate. (https://www.euractiv.com/section/energy/news/explainer-nord-streams-turbine-tussle-puts-spotlight-on-equipment/).
Russian Energy Cuts Expose Tension Between Northern and Southern EU Member States: EU countries' discussions about a joint response to Russia's energy supply cuts risk reviving tensions among EU countries. Some member states have been reluctant to make sacrifices for energy-hungry Germany because of its failure to diversify energy sources while critiquing southern nations' dire fiscal situations. Despite tensions among EU members, the nations compromised on an agreement to cut their demand for gas by 15% by March. (https://www.bloomberg.com/news/articles/2022-07-27/russian-gas-cuts-risk-reviving-old-eu-divisions-this-winter).
Montenegro Freezes Property of Two Russians on EU Sanctions List: The Foreign Ministry of Montenegro said that Montenegro's Property Office blocked the real estate of an unnamed Russian citizen in Zabljak and of the Russian politician Marat Bashirov in the coastal resort of Budva. Bashirov is leader of pro-Russian separatists in eastern Ukraine's Lugansk area. (https://balkaninsight.com/2022/07/27/montenegro-freezes-property-of-two-russians-on-eu-sanctions-list/).
Gas price Soars as Gazprom Throttles Flows to Europe: European gas prices soared on Wednesday as Moscow further restricted flows through the Russia-to-Germany Nord Stream pipeline. Deliveries via Nord Stream sank to just 20 percent of capacity on Wednesday, according to the German grids. Italy's Eni also said it was expecting flows to reduce by around 7 million cubic meters (mcm), down to 27 mcm. Reduced gas flows undermine Russia's already tattered image as a reliable energy exporter. (https://www.politico.eu/article/gas-price-soar-as-gazprom-further-throttles-flows-to-europe/).
Western sanctions sting but don't cripple Russia's economy: While sales of oil and gas are down, revenues are up raising questions on the effectiveness of EU sanctions. (https://www.politico.eu/article/western-sanction-stinging-hammering-russian-economy-data-show/).
EU Renews Economic Sanctions Over Russia's Military Aggression Against Ukraine for Further Six Months: The Council today decided to prolong by six months, until 31 January 2023, the restrictive measures targeting specific sectors of the economy of the Russian Federation. (https://www.consilium.europa.eu/en/press/press-releases/2022/07/26/russia-eu-renews-economic-sanctions-over-russia-s-military-aggression-against-ukraine-for-further-six-months/).
Member States Commit to Reducing Gas Demand by 15% Next Winter: Member states agreed to reduce their gas demand by 15% compared to their average consumption in the past five years, between 1 August 2022 and 31 March 2023, with measures of their own choice. (https://www.consilium.europa.eu/en/press/press-releases/2022/07/26/member-states-commit-to-reducing-gas-demand-by-15-next-winter/ & https://ec.europa.eu/commission/presscorner/detail/en/statement_22_4725).
Commission Supports Ukrainian Access to the Convention on the Simplification of Formalities in Trade in Goods and the Convention on a Common Transit Procedure: Following Ukraine's request to accede to the Convention on the Simplification of Formalities in Trade in Goods and to the Convention on a Common Transit Procedure the Council adopted the EU, the bloc's official position considers that Ukraine shall be invited to accede to the Convention. The exchange of goods with Ukraine would be facilitated by a simplification of formalities which affect the trade in goods between Ukraine and the European Union, Iceland, North Macedonia, Norway, Serbia, Switzerland, Turkey and the United Kingdom. The Decision needs to formally be adopted by the Joint Committees created by the Conventions. (https://data.consilium.europa.eu/doc/document/ST-11511-2022-ADD-1-REV-1/en/pdf;https://data.consilium.europa.eu/doc/document/ST-11511-2022-REV-1/en/pdf).
EU Report Notes Important Steps Taken in the Implementation of the Reform Agenda by Ukraine: The European Union published its annual Association Implementation Report on Ukraine. The report outlines Ukraine's implementation of reforms under the EU-Ukraine Association Agreement covering the period since the latest report published on 1 December 2020 and until the beginning of Russia's military aggression on 24 February 2022. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4706;https://data.consilium.europa.eu/doc/document/ST-11581-2022-INIT/en/pdf).
EU Updates Guidance on Asset Freezes: On July 26, 2022, the European Commission updated the FAQ on Asset Freezes. The Commission added two questions on the new reporting obligations. (https://ec.europa.eu/info/files/faqs-sanctions-russia-assets-freezes_en).
EU Adopts Guidance on Reporting Obligations under the Oil Import Restrictions: On July 26, 2022, the European Commission published an FAQ on reporting obligations under the oil import restrictions answering 16 different questions. (https://ec.europa.eu/info/files/faqs-sanctions-russia-oil-reporting-obligation_en).
Greek PM Proposes EU Payment to Industries for Cutting Gas Use: Greek Prime Minister Kyriakos Mitsotakis proposed a Europe-wide mechanism that will compensate industrial users for cutting their gas and electricity consumption this winter. The mechanism would cover reductions in demand for several months rather than hours or days and would combine elements from energy market design and a way to compensate industry fairly. (https://www.reuters.com/business/energy/greek-pm-proposes-eu-payment-industries-cutting-gas-use-2022-07-26/).
Estonia Will Propose that the EU Should Stop Issuing Schengen Visas to Russians: On Tuesday, Estonian Foreign Minister Urmas Reinsalu said that it was "morally wrong" to allow Russians to visit the EU while the war in Ukraine continues, and reported that his department is preparing a proposal to the EU that would stop issuing Schengen visas to Russians. He added that his department was considering revoking already-issued visas to Russians on certain grounds. (https://babel.ua/en/news/82020-the-ministry-of-foreign-affairs-of-estonia-will-propose-to-the-european-union-to-stop-issuing-schengen-visas-to-russians).
Europe Needs Energy Solidarity – Not a North-South Rift: The bloc must urgently implement a compensation scheme to prevent Putin from dividing member countries, according to a Politicoop-ed. (https://www.politico.eu/article/europe-needs-energy-solidarity-not-north-south-rift/).
CORRIGENDUM (from the 26/07/2022 update): In the update titled "EU Commission Issues Q&A on the New Sanction Package", the hyperlink should be replaced by the following:https://ec.europa.eu/commission/presscorner/detail/en/QANDA_22_4643.
EU Commission Issues Q&A on the New Sanctions Package: On 22 July 2022, the EU Commission published a Q&A detailing the scope of the new EU package of sanctions covering reporting obligations, effects on the food sector, state-owned enterprises, the gold ban, export restrictions, transport related measures, financial measures, the listing of individual and entities as well as general questions. (https://ec.europa.eu/commission/presscorner/detail/en/QANDA_22_4643).
EU High Representative Issues Declaration on the Expansion of the List of Unfriendly States: On 22 July 2022, the EU High Representative issued a declaration following the expansion of the list of unfriendly states by Russia. The EU considers allegations regarding unfriendly actions as unfounded and unacceptable, urging Russia to revoke all such listings. The EU also considers that The earlier Decree establishing the list of so-called "unfriendly" states is incompatible with the Vienna Convention on Diplomatic Relations of 1961. (https://www.consilium.europa.eu/en/press/press-releases/2022/07/22/russia-declaration-by-the-high-representative-on-behalf-of-the-eu-on-the-expansion-of-the-list-of-so-called-unfriendly-states/).
EU Increases Support to Ukraine to EUR 2.5 billion: The Council adopted two assistance measures under the European Peace Facility (EPF) aimed to step up the EU's support for the capabilities and resilience of the Ukrainian Armed Forces to defend the territorial integrity and sovereignty of the country, and protect the civilian population against the ongoing Russian military aggression. The 5th tranche of this facility bring the EU contribution to EUR 2.5 billion in total. (https://www.consilium.europa.eu/en/press/press-releases/2022/07/22/european-peace-facility-eu-support-to-ukraine-increased-to-2-5-billion/).
Commission Issues Q&A on 7th Sanction Package: Following the adoption of the 7thpackage of EU sanctions, the European Commission issued a Q&A detailing inter alia the impact of the measures on agrifood products, the exception to the transaction ban with state-owned enterprises, the scope of the gold ban, and the situation of dual use export controls and medical and pharmaceutical products. (https://ec.europa.eu/commission/presscorner/api/files/document/print/en/qanda_22_4643/QANDA_22_4643_EN.pdf).
Hungary's Top Diplomat Visits Moscow to Negotiate Gas Supplies: Hungary's foreign minister visited Russia in to negotiate the supply of 700m cubic meters of gas. According to the foreign minister "the most important thing for us is to ensure Hungary's energy security". While the EU imposed an oil ban, there is no gas ban under current EU sanctions. (https://www.euronews.com/2022/07/21/hungarys-top-diplomat-visits-moscow-to-negotiate-gas-supplies-despite-eu-sanctions).
London Metal Stock Exchange says EU Sanctions do not Apply to UMMC: After the imposition by the EU of sanctions against Andrei Kozitsyn, former head of Urals Mining and Metals Co (UMMC), LME considers that the sanctions do not extend to UMMC itself because Mr. Kozitsyn does not own or control UMMC for the purpose of the EU sanctions. Although the LME referred to Kozitsyn as the head of UMMC, a press release dated July 19 on UMMC's website said that Kozitsyn has stepped down as chief executive and was replaced by the company's Chairman Elfat Ismagilov. (https://www.mining.com/web/lme-says-eu-sanctions-on-russian-metals-baron-do-not-apply-to-ummc/).
Germany Drafts Plan for Gas Importer Bailout: German Chancellor Olaf Scholz announced that the German government would take a 30 percent stake in energy giant Uniper in an effort to avert a "Lehman Brothers-style crisis." Uniper is the largest importer of Russian gas in Germany. Gas prices in Germany have risen sharply since the country decided to cut reliance on Russian gas. (https://www.theguardian.com/world/2022/jul/22/olaf-scholz-announces-bailout-for-germanys-largest-russian-gas-importer-uniper).
Dutch Government Accused of Delaying Implementation of EU Sanctions: According to Dutch media, the Dutch government waited more than a month to implement important sanctions against Russia due to a wait-and-see attitude and a lack of coordination. (https://nltimes.nl/2022/07/22/dutch-govt-waited-month-implementing-sanctions-russia).
Collapse of the Italian Government Casts Doubts on Italy's Future Stance Toward Russia:After Prime Minister Mario Draghi stepped down this week, Italy will have new elections in the fall. Analysts believe that these elections are likely to favor a far-right government, a political bloc that has traditionally been more sympathetic toward Russia across Europe. Giorgia Meloni, the leader of the far-right Brothers of Italy, which currently leads in polls, has gone out of her way to distance herself from Putin, however. (https://foreignpolicy.com/2022/07/22/italy-meloni-draghi-russia/).
EU Adopts New Package of Sanctions: The European Union adopted a new package of sanctions on 21 July 2021 including additional asset freezes as well as additions and amendments to the sectoral sanctions. A longer assessment of the sanctions package is included as an appendix to this Update in Section VI. (https://www.consilium.europa.eu/en/press/press-releases/2022/07/21/russia-s-aggression-against-ukraine-eu-adopts-maintenance-and-alignment-package/pdf).
Gas Flow Returns to Nord Stream: Gas began flowing through the Nord Stream I pipeline on Thursday morning, in line with the end of a scheduled maintenance shutdown. The restored pipeline is still only operating at 40% capacity, its capacity prior to the maintenance shutdown. Though some EU officials argued that the pipeline should be operating at full capacity after maintenance, many feared that the pipeline would not come back online after the shutoff. (https://www.washingtonpost.com/world/2022/07/21/nord-stream-gazprom-russia-germany-gas/).
EU Prevents Sanctions Against Russian Titanium Maker: EU diplomats told The Wall Street Journal on Thursday that sanctions on Russian metal company VSMPO-Avisma PJSC were scrapped after concerns that Russia would retaliate by blocking exports to of titanium to the EU. The company is a major supplier of titanium to EU aviation giant Airbus. (https://www.wsj.com/articles/russian-titanium-maker-is-pulled-off-sanctions-list-11658425381).
De Beers Benefits From Actions Against Russian Rival: Mining group Anglo American, which owns the De Beers diamond mining company, has increased full-year production guidances due to "robust demand" from US consumers in the wake of sanctions against Russian state-controlled diamond company, Alrosa. The increase in sales is also driven by post-pandemic demand increases in the US. (https://www.ft.com/content/7755d6ee-03bc-4c5e-a353-7aee5822614b).
Commission Proposes Gas Demand Reduction Plan to Prepare EU for Supply Cuts: The EU faces the risk of further gas supply cuts from Russia, due to the Kremlin's weaponization of gas exports. The EU Commission proposed a new legislative tool to reduce gas use in Europe by 15 percent until next spring. The new Regulation would set a target for all Member States to reduce gas demand by 15 percent between 1 August 2022 and 31 March 2023. The new Regulation would also give the Commission the possibility to declare, after consulting Member States, a 'Union Alert' on security of supply, imposing a mandatory gas demand reduction on all Member States. The proposal needs to be approved by Council before entering into force. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4608,https://energy.ec.europa.eu/communication-save-gas-safe-winter_en,https://energy.ec.europa.eu/proposal-regulation-coordinated-demand-reduction-measures-gas_en; https://energy.ec.europa.eu/annex-communication-save-gas-safe-winter_en).
Commission Amends the Temporary Crisis Framework: On Wednesday, the European Commission adopted an amendment to the State aid Temporary Crisis Framework, which enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's invasion of Ukraine. The updated framework Member States can set up schemes for investments in renewable energy and can support investments to phase out from fossil fuels. In addition the framework also expands on the existing types of support that Member States can give to companies in need and further clarified the conditions under which Member States may grant aid to cover the recent increase in gas and electricity costs for companies. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4622).
EU Takes Steps to Invest Almost €1.2 Billion to Support 61 Defense Industrial Cooperation Projects: On Wednesday, the Commission announced plans to grant a total EU funding of almost €1.2 billion supporting 61 collaborative defense research and development projects selected following the first ever calls for proposals under the European Defense Fund. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4595).
Commission Proposes to Temporarily Scrap Tariffs on Goods Used to Produce Fertilizer: The Commission proposed Wednesday to suspend tariffs on inputs used for the production of nitrogen fertilizers until the end of 2024. The objective of this proposal is to help alleviate costs for EU fertilizer producers and EU farmers. The proposal needs to be approved by the Council before entering into force. (https://policy.trade.ec.europa.eu/news/commission-proposes-temporarily-scrap-tariffs-goods-used-produce-fertiliser-2022-07-19_en).
RT Evades EU Sanctions by Launching New Sites: Though the EU has imposed sanctions on Russian state-funded media outlet RT, the company created new sites in German, Spanish, and French as "carbon copies" of previous RT sites in several EU countries. As of July 19, these sites are still accessible in the EU. (https://www.politico.eu/article/russia-europe-sanctions-social-media-rt/).
Cyberattacks Have Increased Since Russian Invasion of Ukraine, Per High Commissioner:According to a Wednesday declaration from the EU high representative, Russia has significantly increased its number of cyberattacks, both in the EU and elsewhere. The declaration reads, "This increase in malicious cyber activities, in the context of the war against Ukraine, creates unacceptable risks of spillover effects, misinterpretation and possible escalation." (https://www.ukrinform.net/rubric-society/3533107-russia-steps-up-cyberattacks-on-eu-world-since-invading-ukraine.html).
Irish Prime Minister Calls for Tougher Sanctions: On Wednesday, Irish President Gitanas Nauseda met with European Commissioner for Financial Stability Mariead McGuiness. During the meeting, the President said, "Sanctions must be painful, effective and unavoidable," though he noted the need for international cooperation to ensure maximum efficacy of the sanctions.(https://www.delfi.lt/en/politics/nauseda-eu-sanctions-against-russia-must-be-harder-and-impossible-to-evade.d?id=90780557).
EU and Azerbaijan Sign Agreement on Gas Supply: EU President Ursula von der Leyen and Azerbaijani President Ilham Aliyev signed a Memorandum of Understanding doubling the supply of gas from Azerbaijan to the European Union. The Memorandum also lays the ground for cooperation on renewable energy and commitments to reduce methane emissions through the gas supply chain. (https://ec.europa.eu/commission/presscorner/detail/en/statement_22_4583).
Russia's Gazprom Declares Force Majeure for Gas Supplies to Europe: Gazprom has told customers in Europe it cannot guarantee gas supplies because of 'extraordinary'circumstances, according to a letter, upping the ante in an economic tit-for-tat with the West over Moscow's invasion of Ukraine. (https://www.reuters.com/business/energy/russias-gazprom-declares-force-majeure-gas-supplies-europe-2022-07-18/).
EU Insists Russia Sanctions Work, but Bloc Needs "Postwar Strategy": As the EU prepares to impose another round of punitive measures on Russia over Ukraine, the bloc's foreign ministers insisted on Monday that the previous six rounds of sanctions have been effective. (https://www.euractiv.com/section/global-europe/news/eu-insists-russia-sanctions-work-but-bloc-needs-postwar-strategy/).
EU Foreign Ministers Consider Ban on Russian Gold Imports. EU foreign ministers are considering a ban on Russian gold imports. However, the EU's High Representative for Foreign Policy said the package would largely "improving the implementation of the already existing sanctions." (https://www.theguardian.com/world/2022/jul/18/eu-foreign-ministers-weigh-up-ban-on-russian-gold-imports).
EU Shipowners Scramble to Move Russian Oil Before Bans Enter Into Force: Though EU sanctions that ban EU vessels from carrying Russian oil come into effect on December 5, EU tankers are still moving oil; Greek tankers moved about half of Russian crude volumes in May and June, according to Lloyds List Intelligence. EU tanker owners have been approached by Chinese purchasers to sell their boats before the ban enters into force, as China and India increase their consumption of Russian oil. Some EU tanker owners note that they may be forced to suspend part of their fleet after the ban begins. (https://www.wsj.com/articles/eu-shipowners-race-to-move-russian-oil-before-sanctions-kick-in-11658055600).
Poland to Boost Coal Imports Subsidies Amid Russia Sanctions: Poland will develop new types of coal subsidies for consumers and boost imports to make sure it has enough fuel for the heating season amid shortages and surging prices. (https://www.reuters.com/business/energy/poland-boost-coal-imports-subsidies-amid-russia-sanctions-2022-07-18/).
Germany's Scholz Says Switch Back to Coal and Oil "Temporary": German Chancellor Olaf Scholz announced on Sunday that Germany has decided to reactivate sixteen oil and coal-fired power plants. The government, however, warns that this is only a temporary measure as a result of "cuts in natural gas supplies from Russia amid the war in Ukraine." (https://www.dw.com/en/germanys-scholz-says-switch-back-to-coal-and-oil-temporary/a-62498429).
Greece's Fur Industry on the Brink as EU Sanctions on Russia Bite: Hundreds of fur businesses were banned from exporting to Russia, the main market for Greece's fur industry. With no domestic market workers are sent home and his stockrooms fill-up with hundreds of unsold garments. (https://www.reuters.com/markets/europe/greeces-fur-industry-brink-eu-sanctions-russia-bite-2022-07-18/).
Swedish Retailer H&M Leaving Russia: On Monday, Swedish apparel retailer H&M announced that it would be winding down its business in Russia. The move will cost the company $200 million and impact 6,000 staff, as Russia was the company's sixth-largest market. H&M previously announced that it would be suspending Russian operations in March. (https://www.reuters.com/business/retail-consumer/hm-says-wind-down-russia-2022-07-18/).
EU Clarifies that it has No Sanctions on Russian Fertilizer, Food: EU Foreign Policy Chief Josep Borrell said on Monday that the EU sanctions do not and will not contain any direct restrictions on Russian exports of fertilizers, foods, and any payment for any of these items. The statement came after a meeting of EU foreign ministers in Brussels. (https://tass.com/world/1481549).
EU Updates Guidance on Donetsk and Luhansk Oblasts: On July 13, 2022, the European Commission updated the FAQ on the Donetsk and Luhansk Oblasts. The Commission added one question on the transit of goods between mainland Russia and Kaliningrad. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-oblasts_en.pdf)
Preview of EU's Seventh Sanctions Package on Russia to be Agreed by Next Week: The EU is preparing to unveil and approve a new round of sanctions on Russia within a week, which is expected to ban Russian gold imports and close existing loopholes. Preparations by EU ambassadors for the new, seventh package are to resume this Thursday and Friday (14 and 15 July), and are likely to be approved by member states by mid-next week according to several EU diplomats. (https://www.euractiv.com/section/europe-s-east/news/a-preview-of-eus-seventh-sanctions-package-on-russia-to-be-agreed-by-next-week/).
Lithuania to Keep Kaliningrad Trade Restrictions While Working out New Rules: Lithuania will keep restrictions on trade flows to the Russian enclave of Kaliningrad while it works out new rules, Prime Minister Ingrida Simonyte said on Thursday (https://www.reuters.com/markets/europe/lithuania-keep-kaliningrad-trade-restrictions-while-working-out-new-rules-2022-07-14/).
EU Weighs Lifting Sanctions on Some Russians Over Legal Concerns: The European Union is in discussions about removing sanctions it imposed on some Russian individuals over their involvement in Moscow's war in Ukraine after the bloc's lawyers found that the penalties may have been imposed on weak grounds, according to people familiar with the matter. About 40 individuals have asked to be taken off sanctions list. (https://www.bloomberg.com/news/articles/2022-07-14/eu-mulls-lifting-sanctions-on-some-russians-over-legal-concerns#xj4y7vzkg).
Recession Would Make Tough Oil Sanctions on Russia More Likely: Commentary fromReuters argues that, in the major economies, the only sure-fire way to reduce Russia's petroleum revenues is to have a major global recession that reduces oil revenues. The commentary indicates this is an uncomfortable truth that Western policymakers have tried to obfuscate from voters at home. (https://www.reuters.com/markets/commodities/recession-would-make-tough-oil-sanctions-russia-more-likely-kemp-2022-07-14/).
EU Announces Freezing EUR 13.8 Billion of Russian Assets: Top EU justice official Didier Reynders stated Tuesday that the EU has frozen 13.8 billion euros (US $13.83 billion) worth of assets held by Russian individuals and entities sanctioned for Moscow's war against Ukraine. (https://www.reuters.com/world/europe/eu-has-frozen-138-bln-euros-russian-assets-over-ukraine-war-official-says-2022-07-12/).
EU Council Adopts EUR 1 Billion Assistance to Ukraine: The Council today decided to provide EUR 1 billion of additional macro-financial assistance to Ukraine, as a matter of urgency. The total macro-financial support from the EU to Ukraine since the start of the war now reaches EUR 2.2 billion and it is expected to increase further in the coming months. (https://www.consilium.europa.eu/en/press/press-releases/2022/07/12/council-adopts-additional-1-billion-assistance-to-ukraine/).
EU Delegation to Nepal Issues Fact-Sheet on Sanctions and Trade in Agrifood Products: The EU delegation to Nepal issued a fact sheet restating that EU sanctions to not restrict EU and third countries' trade in agrifood products. The delegation provides a helpful reminder of sanctions in place vis-à-vis exports of agrifood from Ukraine, Russia and Belarus. (https://www.eeas.europa.eu/delegations/nepal/fact-sheet-eu-sanctions-do-not-restrict-eu-and-third-countries%E2%80%99-trade-agrifood_en).
Bloomberg Reports Possible New EU Sanctions on Russia in Coming Weeks:Bloomberg reported on Tuesday that it expects a new package of sanctions on Russia from the EU in coming weeks. The agency previously reported that the new package may include restrictions on gold imports, measures to bolster the effectiveness of previous sanctions, and an updated list of sanctioned parties. It expects that an oil price cap will not be included in this new package. (https://news.yahoo.com/eu-propose-sanctions-package-against-105300373.html).
Renault Car Sales Plummet After Closure of Russian Operations: The sales of French car company Renault have fallen 30 percent in the first half of 2022, due to the closure of its Russian operations, according to company disclosures released Tuesday. Prior to 2022, Russia was the company's second-largest market, and accounted for 15 percent of its earnings; Renault sold its Russian subsidiary earlier in the year. (https://www.reuters.com/business/autos-transportation/renault-first-half-sales-volume-slumps-30-after-russia-exit-2022-07-12/).
European Space Agency Terminates Cooperation with Russia on Mars Mission:The European Space Agency announced on Tuesday that it would be suspending cooperation with its Russian counterpart on the ExoMars mission to Mars. The ExoMars launch, which was planned as Europe's first Mars mission, was delayed from March to September of this year due to the invasion of Ukraine, but the Agency formally suspended all cooperation in the Tuesday announcement. The Agency will have more details on the future of the Mission on July 20. (https://www.cnn.com/2022/07/12/world/exomars-terminated-russia-european-space-agency-scn/index.html).
Finnish Ambassador Expresses Lack of Faith in Efficacy of Sanctions: Finland's Ambassador to the U.S. Mikko Hautala expressed a pessimistic view on the impact of economic sanctions on Russia during a Tuesday speech. He explained that, in his view, Russia will be able to mass produce sanctioned items and rearm themselves regardless of the sanctions for up to one year. He stated "focusing on the sanctions will not immediately relieve Ukraine, basically in any way."(https://www.politico.com/newsletters/national-security-daily/2022/07/11/finnish-ambassador-russia-can-keep-fighting-for-a-very-long-time-00045088).
Russia shuts down Nord Stream Gas Pipeline: Russia has reduced Nord Stream gas exports to Europe for a long-planned, routine 10-day repair. The Nord Stream pipeline transports gas from Russia to Germany. German officials, including the Energy Minister, fear Russia might not restart the flow of gas in an attempt to destabilize Europe. Alternative supply sources are contemplated by Europeans including Norway, Azerbaijan and the U.S. but change will take time to implement. According to Germany's energy regulator, "current stocks will only last for one or two months". (https://www.dw.com/en/russia-shuts-down-nord-stream-gas-pipeline-for-repairs/a-62427679).
Commission Answers Parliamentary Question on Import Ban on Fishery Products: On July 8, 2022, EU High Representative Josep Borrell replied to a parliamentary question requesting an import ban on all fishery products from Russia. The High Representative underlined that EU sanctions are designed not to target food and agricultural products and stated that, against this backdrop of ensuring food security, with regard to seafood, the EU has imposed very limited restrictions.(https://www.europarl.europa.eu/doceo/document/E-9-2022-001875_EN.html).
EU Commissioner for Justice States that Commission Does Not Collect Data on Golden Passports: Commissioner for Justice Didier Reynders replied to a parliamentary question inquiring on the number of golden passports received by Russian and Belarussian nationals on July 8. The term golden passport relates to the systematic granting of EU citizenship in return for payments or investments by certain EU Member States. According to the answer, the Commission does not collect statistics on the number of naturalizations granted to Russian and Belarusian nationals based on such schemes. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001276_EN.html).
Russia Shuts Kazakhstan-EU Oil Pipeline: On July 5, 2022, a district court in Novorossiysk, Russia's biggest Black Sea port, ordered the shutting off of a pipeline exporting oil from Kazakhstan to the EU for a month. This decision follows a phone conversation between Kazakh President Kassym-Jomart Tokayev and European Council President Charles Michel during which Kazakhstan announced its support in helping the EU overcome its current energy crisis. (https://www.dw.com/en/russia-targets-eu-cutting-off-kazakhstans-oil-exports/a-62408644).
European Commission Consults Member States on the Amendment of State aid Temporary Crisis Framework: In light of the prolonged invasion by Russia of Ukraine and of its direct and indirect effects on the economy and on the energy situation, the Commission is assessing the need to adjust the State Aid Temporary Crisis Framework. The Temporary Crisis Framework enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's invasion of Ukraine. Possible amendments include the adjustment of maximum aid ceilings, additional measures facilitating the investments in renewable energy and measures to further accelerate the diversification of energy supplies. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4469).
Lithuania Expands Restrictions on Trade to Kaliningrad: On July 11, 2022, Lithuania prohibited the transit to Kaliningrad through its territory to additional goods including concrete, wood, alcohol and alcohol-based industrial chemicals. This prohibition follows similar measures previously imposed by Lithuania on the transport of iron, steel and metals despite threats of retaliation from Moscow. On Monday, the Kaliningrad regional governor proposed a total ban on overland movement of goods between Russia and the three EU Baltic member states of Lithuania, Latvia and Estonia, a move which could divert Russian freight from their ports to those in Kaliningrad. (https://www.euractiv.com/section/global-europe/news/lithuania-widens-curbs-on-kaliningrad-trade-despite-russian-warning/).
Spain Urges Companies to Reduce LNG Imports from Russia: Spain's Energy Minister Teresa Ribera urged Spanish companies on Monday to reduce imports of liquefied natural gas from Russia and search for alternatives and said the country was readying a contingency plan for the winter in order to help EU neighbors.(https://www.reuters.com/business/energy/spain-energy-minister-urges-utilities-reduce-lng-imports-russia-2022-07-11/).
Abramovich Contests Russian Sanctions Before EU Court: On July 11 2022, a summary of the application brought by Roman Abramovich against EU sanctions was published in the Official Journal of the European Union. The application alleges an infringement of the right to effective judicial protection and the administration's obligation to state reasons, a manifest error of assessment, infringement of the principle of proportionality and the principle of equal treatment, and an infringement of fundamental rights and unjustified interference in the applicant's fundamental rights guaranteed by the Charter of Fundamental Rights of the European Union. Mr. Abramovich requested the annulment of the sanctions as applied to him and the provisional payment by the Council of one million euros to the charitable foundation for victims of conflicts which is being established in connection with the sale of Chelsea FC, due to the non-material damage Mr. Abramovich claims to have suffered (https://www.reuters.com/business/energy/spain-energy-minister-urges-utilities-reduce-lng-imports-russia-2022-07-11/).
EU Working to Step Up Sanctions Enforcement: On Saturday, The Wall Street Journal released a summary of recent EU proposals to improve sanctions enforcement. The proposals include a centralized sanctions enforcement body, like the Treasury Department's Office of Foreign Asset Control; an expansion of sanctions targets to include family members, making it more difficult for targets to transfer assets to a non-sanctioned relative; and a reduction in the cutoff of the amount of any company that a sanctioned oligarch can hold from 50 percent to 25 percent. (https://www.wsj.com/articles/eu-works-to-tighten-russia-sanctions-enforcement-11657371600).
France Readies for Russian Gas Cutoff: Speaking on Sunday, French Finance Minister Bruno Le Maire stated that French government was readying for a total cutoff of Russian gas supplies, calling such a shutoff "the most likely scenario." He said that France was looking into public awareness campaigns to urge businesses and homes to voluntarily reduce gas consumption, build infrastructure to increase natural gas imports from other sources, and, as a last resort, requiring companies to lower production to save on energy consumption. France imports 17 percent of its natural gas from Russia, less than many of its neighboring countries. (https://www.reuters.com/world/europe/russian-gas-cutoff-most-likely-scenario-french-finance-minister-2022-07-10/).
Finns Ready for More Sanctions, According to Polls: Most Finns support stricter sanctions against Russia, according to recent polls published on July 9. Fifty-four per cent of Finns would be ready for stricter sanctions, while only about 30 percent are pleased with current sanctions. Only 5 percent want sanctions to be lifted altogether, the survey adds. (https://www.euractiv.com/section/politics/short_news/finns-would-like-to-see-more-russian-sanctions/).
EU Sanctions Create a Brain-Drain from Northern Europe: According to business advisor Chris Devonshire-Ellis, the combined forces of EU sanctions, the prospect of a harsh winter, and no guarantee of adequate energy supplies are pushing northern Europeans to consider relocation to southern Europe. Devonshire-Ellis notes that industry groups are pointing to sanctions as the reason for slowing industrial production in Europe. (https://www.asiabriefing.com/news/2022/07/eu-sanctions-policy-is-leading-to-dark-days-for-northern-europe/).
Dutch Prime Minister Commits to Further Support for Ukraine: During a visit to Kyiv on Monday, Dutch Prime Minister Mark Rutte met with Ukrainian President Volodymyr Zelenskyy and said that the Netherlands is prepared to support Ukraine "now and in the years to come." He added that the Netherlands is ready to help find a solution to export grain out of Ukraine. (https://www.cnn.com/world/live-news/russia-ukraine-war-news-07-11-22/h_360234611a4dfe5a3177edc8c3a92e95).
EU Updates Guidance on Deposits: On July 8, 2022, the European Commission updated the FAQ on Deposits adding a question on repayment of loans from a credit institution. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-deposits_en.pdf).
EU Updates Guidance on Trust Services: On July 8, 2022, the European Commission updated the FAQ on Trust Services adding a question on UCITS and Alternative Investment Fund structures and another on "foundations". (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-trusts-services_en.pdf).
Polish Official Accuses Germany to Try to Exempt Kaliningrad From EU Sanctions: Marcin Przydacz, Deputy Foreign Minister of Poland stated that "Germany is calling on Europe to break the European law which is a result of a deal agreed upon by the EU 27 to impose sanctions on Russia." This follows rumors that European officials are in talks about exempting Kaliningrad from sanctions. (https://www.thefirstnews.com/article/germany-tries-to-exempt-kaliningrad-from-eu-sanctions—polish-dep-fm-31599).
Germany Urges Canada to Release Sanctioned Pipeline Turbine: German Economy Minister Robert Habeck released a statement on Thursday calling on Canada to release a turbine needed to repair the Nord Stream I pipeline, saying, "I'll be the first one who will fight for a further strong EU sanction package, but strong sanctions means it must hurt and harm Russia and Putin more than it does our economy." The part is currently being withheld due to Canadian sanctions on the item; without the part, Germany may need to ration energy consumption in the winter. (https://financialpost.com/commodities/energy/oil-gas/germanys-habeck-urges-canada-to-help-thwart-putins-gas-excuses).
Russia Threatens Lithuania with "Harsh Measures" over Kaliningrad Dispute: On Friday, Russian Foreign Ministry Spokeswoman Maria Zakharova warned in a statement that, "[i]f the situation does not stabilize in the coming days, then Russia will take harsh measures against Lithuania and the European Union." She said that the situation has taken too long to resolve. (https://www.reuters.com/world/europe/russia-warns-lithuania-it-could-take-harsh-measures-over-kaliningrad-transit-2022-07-08/).
EU Parliament Consents to Making Sanction Violations an EU Crime: On July 7, 2022, the European Parliament gave its consent to adding the violation of Union restrictive measures to the list of EU crimes. This would allow the Commission to propose a directive defining the scope and the criminal penalties for the violation of sanctions across Member States in a consistent manner. The measure still need to be formally adopted by the Council of the European Union. (https://www.europarl.europa.eu/doceo/document/TA-9-2022-0295_EN.pdf).
Dutch Port Exemplifies Struggles of Sanctions Enforcement: On Friday, The New York Times published a profile of enforcement administrators at the Dutch port of Rotterdam. Officials interviewed for the piece discussed the difficulty in determining which transactions were restricted, and which ones were permitted, noting that the port was one of Europe's major points of entry for cocaine. The port has surged staffing to meet the competing needs of Brexit and increased sanctions on Russia, but US officials interviewed for the article noted that, because EU sanctions enforcement happens at the member state level, not all countries will have the same level of commitment to enforcement. (https://www.nytimes.com/2022/07/08/world/europe/russia-eu-sanctions-rotterdam.html).
German Support for Sanctions Remains Steady: In a poll of about 1,300 eligible German voters in June, 60 of respondents said they supported measures against Russia even if energy supplies were a problem and local businesses were disadvantaged. 57 percent of respondents said they supported the measures even if energy and grocery prices continued to rise. (https://www.dw.com/en/german-voters-support-for-russia-sanctions-is-waning/a-62408344).
EU Parliament Calls on Serbia to Align With EU Sanctions: Members of the European Parliament approved an annual assessment report on Wednesday regretting that Serbia has not aligned with EU sanctions on Russia. The text was adopted with 523 votes in favor, 78 against and 34 abstentions. (https://www.euronews.com/my-europe/2022/07/06/eu-parliament-calls-for-serbia-to-change-its-stance-on-russia).
EU Working on More Sanctions Against Russia: EU Council President, Charles Michel, told the European Parliament on Thursday that Brussels is looking at more sanctions against Russia. The bloc is considering sanctions on gold and a price cap on Russian oil, in line with recent commitments made at the G7 summit. In addition, the EU will continue to provide both financial and military support for Ukraine. (https://www.financialmirror.com/2022/07/07/eu-working-on-more-sanctions-against-russia/).
France to Nationalize Power Company EDF to Combat Europe's Energy Crisis: On Wednesday, French Prime Minister Élisabeth Borne said that the French government will purchase 100% of power company EDF's shares, compared to the 84% it owns currently. The French government said this step is needed to manage the transition away from fossil fuels at a time of energy crisis and the war in Ukraine. EDF has struggled after the French government capped retail electricity prices, and French labor unions have previously lobbied for nationalizing EDF to enact climate change policies. (https://www.wsj.com/articles/france-to-nationalize-energy-giant-edf-to-help-it-combat-europes-energy-crisis-11657119239?mod=djemalertNEWS).
Hungarian Prime Minister Orban's Party Explores Possibilities to Rejoin Center-Right EPP: After two years of suspensions, Hungarian Prime Minister Viktor Orban is reportedly pursuing an alliance between his Fidesz party and the center-right European People's Party ("EPP"). Fidesz was previously in the EPP but left after receiving criticism about human rights in Hungary from the EPP. This move might be complicated by Orban and Fidesz's recent positions regarding EU sanctions, notably the firm opposition to EU sanctions against Russian Orthodox Church Patriarch Kirill. (https://euobserver.com/eu-political/155418).
EU Guarantee Supports EBRD Loans to Ukraine: The European Commission and the European Bank for Reconstruction and Development formalized a commitment for the European Commission to provide guarantees to support €70 million of recent EBRD loans to Ukrainian companies that provide vital services to the country's real economy. (https://www.ebrd.com/news/2022/eu-guarantee-supports-ebrd-in-loans-to-key-ukraine-companies-.html).
Commission Presents Guidance on Safe Home Initiation: During a session of the Ukraine Solidarity Platform meeting Commissioner for Home Affairs, Ylva Johansson presented the Guidance supporting the 'Safe Homes' initiative. The Guidance for Safe Homes presents key principles and practices to help hosting families, facilitate proper matching with those in need, and to ensure that private housing solutions are suitable and safe. (https://home-affairs.ec.europa.eu/safe-homes-guidance_en).
Council Authorizes the Signing of the Carriage of Freight by Road Agreement with Ukraine: The Council of the EU authorized the signature of an agreement between the European Union and Ukraine on the carriage of freight by road. The agreement aims at making it easier to transport goods between the EU and Ukraine by road. The Council also authorized the provisional application of the agreement pending ratification. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2022.179.01.0004.01.ENG&toc=OJ%3AL%3A2022%3A179%3ATOC).
High Representative Replies to Parliamentary Question on Sanctions Against Persons Listed by the Anti‑Corruption Foundation: EU High-Representative Josep Borrell replied to a parliamentary question on the scope of EU sanctions underlining that the Anti‑Corruption Foundation has put together a list of around 6 000 people and entities who are directly linked to President Putin, and yet fall outside the scope of EU sanctions. The High-Representative notably mentioned that the EU "ensures that all designations meet the legal standards as defined in the jurisprudence of the CJEU". (https://www.europarl.europa.eu/doceo/document/E-9-2022-001862_EN.html).
Bulgaria Block Transfer to the Russian Embassy: Bulgaria's Finance Minister said on Wednesday that Bulgaria has blocked a bank transfer worth some $890,000 to the Russian embassy because of EU sanctions.(https://www.reuters.com/world/europe/bulgaria-blocks-bank-transfer-russian-embassy-citing-eu-sanctions-2022-07-06/).
Cryptocurrency Platform BitMEX Stops Offering Services to Russian in the EU: Cryptocurrency platform BitMex announced that it will no longer be offering its services to Russian citizens or residents located in the EU. Russians situated in Russia will likely not be impacted by the changes. The restriction is being applied by the company in order to stay compliant with EU sanctions against Russia. (https://cryptobriefing.com/bitmex-to-restrict-services-to-russians-in-eu/).
Commission President Warns of Danger of Complete Cut-off of Russian Gas: Commission President Ursula von der Leyen said before the European Parliament on Wednesday that the EU needs to prepare now for further disruption of gas supply and "even a complete cut-off of Russian gas supply". The EU already agreed last month that all natural gas storage in the 27-nation bloc should be topped up to at least 80% capacity for next winter to avoid shortages during the cold season. (https://time.com/6193972/eu-russia-gas-supply-cut-off/).
Amid Energy Crisis, E.U. Says Gas, Nuclear Can Sometimes be 'Green': The E.U. has agreed to phase out imports of coal and oil from Russia to hit the Kremlin's war chest. Putin, who is aware that the bloc remains dependent on its gas, uses it as leverage to threaten and punish the E.U. Those in opposition to the inclusion of gas in the green taxonomy have expressed concern that it will incentivize investment in fossil fuels and delay the E.U.'s transition to renewable energy, but defenders of the plan argue that the war has heightened the need for rapid investment in the infrastructure required to import gas from places other than Russia.(https://www.washingtonpost.com/world/2022/07/06/eu-parliament-nuclear-gas-green/?itid=hp_world).
Transparency International Calls on EU to Drop Russian Diamond Trade: Transparency International addressed an open letter to senior Belgian and European officials calling to drop the diamond trade with Russia. According to the letter, Russia exports $4 billion of rough diamonds annually, with Belgium being the largest importer. The Belgian Prime Minister has kept the door open to action at the European level, but has resisted moves to stem the trade at home. (https://www.brusselstimes.com/250512/transparency-international-calls-on-eu-to-drop-russian-diamond-trade).
Russia to Deliver Goods to Norway Despite Sanctions: Despite Norway joining the European Union's sanctions against Russia, in response to the Ukraine crisis, Russians still might be able to send their goods through Storskog, the only checkpoint on their border with Norway. (https://www.teletrader.com/russia-to-deliver-goods-to-norway-despite-sanctions/news/details/58183270).
Czech Government Issues Clarification on Russian Student Enrollment: In an official memo to all Czech universities, Deputy Education Minister Radka Wildova said EU sanctions forbid providing technical assistance to Russians, and that supporting higher education or applied research for Russian citizens could count as rendering technical assistance. Some Czech universities were forced to expel Russian students or force Russian students to change majors in response to the directive, but others are questioning the necessity of the measure. (https://www.dw.com/en/czech-republic-russian-university-students-face-restrictions/a-62388131).
European Commission Replies to Parliamentary Question on Agricultural Products: The Commission provided a reply to a parliamentary question on if it intends to use the Commission's power to prevent or limit disturbance to the agricultural market following Russia's invasion of Ukraine. The Commission did not rule out the possibility of adopting exceptional measures. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001884-ASW_EN.html).
Finland Seizes Russian Freight Cars: Reuters reports that Finland has seized nearly a thousand freight cars belonging to Russian companies as a result of EU sanctions. (https://www.reuters.com/world/europe/finland-seizes-hundreds-russian-freight-cars-eu-sanctions-bite-2022-07-05/).
European Commission Requests Feasibility Study on Asset Confiscation: The European Commission gave its approval to a pilot project to explore legal ways to reuse frozen Russian assets that could be confiscated due to violation of EU sanctions. (https://www.euractiv.com/section/global-europe/news/eu-eyes-to-test-waters-on-russian-asset-confiscation/).
Luxembourg Minister Says Seizing of Russian Assets Could be Part of Next Sanctions: Franz Fayot, the economy minister of Luxembourg, reported that some participants to the Ukraine recovery conference in Lugano, Switzerland, mainly Eastern European countries, suggested using seized Russian assets to finance the reconstruction of Ukraine. "We don't have a legal framework for something like that right now" Fayot said, but seizing Russian assets could well be among the next EU sanctions against Russia.(https://delano.lu/article/seizing-russian-assets-could-b).
UniCredit Considering Sale of Russian Business, with Buyback Option: Bloomberg reported on Tuesday that UniCredit, Italy's second largest bank, is looking at options to sell its Russian business, including one that would give it the option to buy back its Russian business should the geopolitical situation improve. UniCredit already took a 1.85 billion euro loss on its Russian business, and is attempting to reduce further losses. (https://www.bloomberg.com/news/articles/2022-07-05/unicredit-mulls-a-russia-exit-that-it-can-reverse-after-the-war).
Italian Court Turns Down Request to Lift Freeze on Russian Businessman's Yacht: On Tuesday, the administrative court in Lazio turned down a request to lift an asset freeze on the Lady M yacht. Asmare Enterprises, the listed owner of the yacht, unsuccessfully argued that sanctioned oligarch Alexey Mordashov was not the owner of the 65 million euro ($68 million) yacht, which was seized by the Italian police in the northern port of Imperia in March.(https://www.insurancejournal.com/news/international/2022/07/05/674576.htm)
EU Considering a New Bloc-Wide Sanctions Authority: Speaking to The Financial Times on Sunday, Mairead McGuinness, EU Financial Services Commissioner, announced on Sunday that the EU is considering a new sanctions authority, similar to the Treasury Department's Office of Foreign Asset Control, or giving its planned Anti-Money Laundering Authority the ability to oversee sanctions and amend legislation. These proposals would replace the current process, where sanctions are drafted through discussions between the European Parliament and Member-States. She added that the EU is considering forcing sanctioned entities to disclose their assets. (https://www.ft.com/content/fe83c67b-5dcc-447e-aba3-34911aa5f39d).
Swedish PM: No Agreement on Seventh Sanctions Package: During a visit to Kyiv on Monday, Swedish Prime Minister Magdalena Andersson said that the EU has not yet reached an agreement on the content of a seventh sanctions package against Russia. She added that Sweden is ready to adopt a new package, including an embargo on Russian natural gas purchases. (https://www.ukrinform.net/rubric-polytics/3521894-eu-has-not-yet-agreed-on-seventh-package-of-sanctions-against-russia-swedish-pm.html).
EU Nears Compromise Deal to Defuse Standoff with Russia: According to two sources familiar with the matter, trade through Lithuania to the Russian exclave of Kaliningrad could return to normal within two days. European officials are edging towards a compromise deal with the Baltic state to defuse a row with Moscow. European officials are in talks about exempting the territory from sanctions, paving the way for a deal in early July if EU member Lithuania drops its reservations. (https://www.reuters.com/world/europe/exclusive-kaliningrad-row-eu-nears-compromise-deal-defuse-standoff-with-russia-2022-06-29/).
Commission Publishes Guidance Note on Provision of Humanitarian Aid : On June 30, 2022, the EU Commission published a guidance note on the provision of humanitarian aid in compliance with EU sanctions. This builds on previous guidance on the provision of humanitarian aid to fight the Covid-19 pandemic in certain environments subject to EU sanctions that focused on EU counterterrorism sanctions and Iran, Nicaragua, Syria and Venezuela sanctions regimes. (https://ec.europa.eu/info/publications/220630-humanitarian-aid-guidance-note_en).
EU Parliament Publication on Implication for the ECB of the War in Ukraine: The Directorate-General for Internal Policies published a compilation of papers on the implication of the war in Ukraine for the European Central Bank following a request from the ECON committee of the European Parliament. (https://www.europarl.europa.eu/RegData/etudes/STUD/2022/703366/IPOL_STU(2022)703366_EN.pdf).
EU Provides Guidance on Sanctions and the REACH Regulation: On July 1, 2022, the European Commission published an FAQ on REACH containing 15 questions relating to EU Sanctions and Regulation (EC) No 1907/2006. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-reach_en.pdf).
EU, Ukraine, and Moldova Sign Road Freight Transport Agreement: Moldova and Ukraine both signed transport agreements with the EU to help secure supply chains, including food security following Russia's aggression against Ukraine. In addition, the EU and Ukraine signed an understanding on updating Ukraine's indicative TEN-T network to improve infrastructure connections between the EU and Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_4245).
EU Updates Guidance on General Questions: On June 30, 2022, the European Commission updated the FAQ on General Questions. The Commission added one question on the application of sanctions to EU branches of Russian companies. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-general_en.pdf).
German Chancellor Says NATO Will Support Ukraine for as Long as Necessary: German Chancellor Olaf Scholz said that NATO allies will continue to help Ukraine defend itself against Russia for "as long and as intensively as it is necessary." German Defense Minister Christine Lambrecht said Berlin would provide division of 15,000 troops, with 65 planes and 20 ships, to NATO's high-readiness forces. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-06-29-22/h_099c28e86d5e3396be04bad228fd5d4c).
NATO Formally Invites Finland and Sweden to Alliance: NATO formalized its invitation to Finland and Sweden to the alliance, according to a statement from NATO Heads of State and Government on Wednesday. The statement added, "The accession of Finland and Sweden will make them safer, NATO stronger, and the Euro-Atlantic area more secure." (https://www.cnn.com/2022/06/29/politics/joe-biden-nato-day-2/index.html).
Council Takes the First Step to Make Violation of EU Sanctions an EU Crime: On 28 June 2022, the Council reached an agreement at technical level on the Commission's proposal to make violation of EU sanctions an EU crime. This would allow the Commission to propose a directive defining the scope and the criminal penalties for the violation of sanctions across Member States in a consistent manner. The Council's Permanent Representative Committee still has to officially endorse the agreement and to request the consent of the European Parliament before the final adoption of the text. (https://data.consilium.europa.eu/doc/document/ST-10556-2022-INIT/en/pdf).
EU Commission Extends Support for the Integration of Ukrainian Refugees: The European Commission adopted a new comprehensive package to extend the support provided under the Cohesion's Action for Refugees in Europe ("CARE") to further speed up and simplify Member States' support to the integration of third country nationals. The new package provides for more support for Member States, local authorities and civil society organizations welcoming displaced people, ensures that investments go where they are needed and provides practical support to solve the problem of delayed implementation of projects. (https://ec.europa.eu/commission/presscorner/detail/en/IP_22_4043).
Bulgaria Expels 70 Russian Diplomats: Bulgaria expelled 70 Russian diplomats over espionage concerns, more than half of Russia's diplomatic presence in the country. The Foreign Ministry said the decision was designed to bring down the size of Moscow's mission to that of the Bulgarian representation in Moscow. (https://www.reuters.com/world/europe/bulgaria-expels-70-russian-diplomatic-staff-over-espionage-concerns-2022-06-28/).
Decathlon Temporarily Closes Stores in Russia: Sport equipment company Decathlon announced it would be closing its Russian stores and online shop temporarily due to supply problems. Decathlon imports almost all its product from abroad. Unlike many western companies, Decathlon decided not to pull out of Russia following the invasion of Ukraine. (https://www.retaildetail.eu/news/leisure/empty-shelves-force-decathlon-to-close-in-russia/).
European Steelmakers Continue to Purchase Russian Steelmaking Components: On Tuesday, The Wall Street Journal reported that Russian exports of ferrotitanium, a metallic alloy used to strengthen steel, to Europe increased by 30 percent in March from the previous month, despite industry statements that they would avoid Russian-sourced raw materials. Buyers are attracted by the steep discounts, and as long as the alloy is not sanctioned, they likely will keep buying. (https://www.wsj.com/articles/steelmakers-avoid-russian-components-but-bargain-hunters-swoop-in-11656402338?mod=hp_lista_pos5).
Lithuania's President Vows To Stick To Kaliningrad Restrictions: Lithuanian President Gitanas Nauseda has stressed that his Baltic country "must" and "will" enforce EU sanctions on Russian goods amid harsh rhetoric from Moscow over Vilnius's recent restrictions affecting the Russian exclave of Kaliningrad. He called for an "urgent" start to consultations with the European Commission to protect Lithuania's interests and international obligations in the shadow of sanctions against Ukraine's "aggressor." (https://www.rferl.org/a/lithuania-kaliningrad-eu-sanctions-enforce-russia/31915719.html).
Russian Hackers Temporarily Disable Lithuanian Government Websites: On Monday, the websites for the Lithuanian State Tax Inspectorate and the Migration Department were temporarily disabled as a result of a distributed denial of service ("DDOS") attack. A pro-Moscow hacking group, Killnet, has claimed responsibility for the actions. Russia repeatedly warned Lithuania that the country would "retaliate" in response to Lithuania's decision to disrupt transportation to the Russian enclave of Kaliningrad. (https://www.nbcnews.com/tech/security/cyberattack-hits-lithuania-sanctions-feud-russia-rcna35488).
Lithuanian PM: Russia Knew About Transit Sanctions and Was Preparing for Them: Russia has known about the sanctions imposed on the transit of goods to the Kaliningrad region since March and has been preparing for them, Lithuanian Prime Minister Ingrida Simonyte says, adding that Moscow's propaganda attacks are part of an information war. (https://www.baltictimes.com/lithuanian_pm__russia_knew_about_transit_sanctions_and_was_preparing_for_them/).
EU Commission Answers Parliamentary Question of Circumvention: Commissioner McGuinness answered a parliamentary question seeking clarification on how the European Union plans to prevent Russia circumventing sanctions through illegal transactions using dummy companies. The Commission notably recalls that it will conduct a review of practices that circumvent and undermine sanctions which will inform possible legislative proposals or implementation guidelines. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001491-ASW_EN.pdf).
Mandatory Gas Storage Legislation Passes Final Step: The Council has definitively adopted a regulation that provides that underground gas storage on member states' territory must be filled to at least 80% of their capacity before the winter of 2022/2023 and to 90% before the following winter periods. The text will enter into force the day after its publication in the Official Journal. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/27/council-adopts-regulation-gas-storage/).
France Pushes for Cap on Oil Prices Worldwide: While G7 leaders have been debating a price-cap plan targeting Russian oil exports, the services of the French president confirmed that France is pushing for a cap on oil prices "not only on Russian oil" but that "take[s] into account all market players". (https://www.politico.eu/article/france-wants-worldwide-cap-on-oil-prices/).
EU Extends Broadcasting Prohibition: The Council of the EU adopted Council Decision (CFSP) 2022/995 and Implementing Regulation (EU) 2022/994 extending the broadcasting prohibitions to three additional entities: Rossiya RTR / RTR Planeta, Rossiya 24 / Russia 24, and TV Centre International. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.LI.2022.167.01.0003.01.ENG&toc=OJ%3AL%3A2022%3A167I%3ATOC and https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.LI.2022.167.01.0001.01.ENG&toc=OJ%3AL%3A2022%3A167I%3ATOC).
Remarks by President Charles Michel before the G7 Summit in Schloss Elmau, Germany: On June 26, 2022, at the opening of the G7 summit in Germany, European Council President Michel stated that G7 discussions will focus on the situation in Ukraine. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/26/remarks-by-president-charles-michel-before-the-g7-summit-in-schloss-elmau-germany/).
Putin's War Is Forcing Italy to Rethink Its Historic Ties to Russia: The invasion of Ukraine is exposing a fissure over attitudes to Moscow that runs through Italian business, politics and society at large. (https://www.bloomberg.com/news/articles/2022-06-25/putin-s-war-is-forcing-italy-to-rethink-its-historic-ties-to-russia).
Hungary Will Not Discuss Ban on Russian Oil With EU: Speaking over Facebook, Hungarian Foreign Minister Peter Szijjarto said on Monday that "Hungary doesn't want to hold talks on a gas embargo… That would practically incapacitate our economy and the entire country…" (https://tass.com/economy/1472149)
EU Updates Consolidated FAQ: On June 24, 2022, the European Commission published an updated consolidated version of the frequently asked questions concerning sanctions adopted following Russia's military aggression against Ukraine. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-consolidated_en.pdf).
EU Publishes First FAQs on Business Services and Trust Services: On June 24, the European Commission published the first version of the FAQs on business services (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-business-services_en.pdf) and trust services (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-trusts-services_en.pdf).
EU Updates FAQs on Oil Imports, Imports and Purchase of Goods, and Road Transport: On June 24, the European Commission published updated versions of the FAQs on oil imports(https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-oil-imports_en.pdf),imports and purchase of goods (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-imports-purchase-goods_en.pdf), and road transport(https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-road-transport_en.pdf).
EU Sanctions Do Not Restrict EU and Third Countries' Trade in Agrifood Products: The European External Action service published a fact-sheet stating that the EU sanctions do not restrict EU and third countries' trade in agrifood products. (https://www.eeas.europa.eu/sites/default/files/documents/Food%20security%20fact-sheet_2.pdf).
Germany Considering Nationalizing Nord Stream II Pipeline: On Friday, reports emerged that Germany is considering nationalizing part of the Nord Stream II Pipeline. This would allow the pipeline to connect to a floating LNG terminal that is already connected to Germany's gas transmission system. German analysts are still working through the legal and political consequences of the action. (https://news.yahoo.com/germany-could-nationalize-part-nord-162000632.html).
Russia Sanctions vs. Recession Risk in Europe: EU States Look to Stem Rising Inflation: Since Russia invaded Ukraine four months ago, the cost of living crisis has become a global issue. Prices have gone up around the world. In Europe, the countries that use the euro saw an average of 8.1 percent inflation in May. Pressure on prices, combined with stuttering economic growth, has sparked fears of a recession. These concerns could still come into play regarding the EU's response to the Russian invasion of Ukraine. In this program, we're joined by two MEPs to discuss how the EU should balance sanctions against Russia with the risk of recession. (https://www.france24.com/en/tv-shows/talking-europe/20220624-russia-sanctions-vs-recession-risk-in-europe-eu-states-look-to-stem-rising-inflation).
EU Updates Guidance on Gas and Oil Imports, State-Owned Enterprises, Insurance and Reinsurance, Agricultural Products from Russia and Agricultural Products from Ukraine: On June 22 and 23, 2022, the European Commission updated 5 different FAQs on Russian Sanctions. (https://ec.europa.eu/info/business-economy-euro/banking-and-finance/international-relations/restrictive-measures-sanctions/sanctions-adopted-following-russias-military-aggression-against-ukraine_en#oil).
EU Publishes First Consolidated Guidance of Russian FAQs: On June 23, 2022, the European Commission published a consolidated version of the frequently asked questions concerning sanctions adopted following Russia's military aggression against Ukraine. This is the first time that all the FAQs are gathered in a single document. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-consolidated_en.pdf).
Uncertainties Regarding the Application of Sanctions to Kaliningrad: Following the decision of Lithuania to ban the transit of goods under EU sanctions from mainland Russia to Kaliningrad, the Commission is said to be working on new guidance that makes clear that Lithuanian customs authorities have to check the goods to avoid sanctions evasion, but can allow onward transport of metals if they are destined for Russia's internal market. Lithuanian Prime Minister Ingrida Šimonytė insists, however, that the transit ban on steel and ferrous metal through the EU is part of the bloc's sanctions, as agreed by all 27 members. (https://www.politico.eu/newsletter/brussels-playbook/kaliningrad-simmers-enlargement-hypocrisies-renew-and-bulgaria/).
EU Grants Ukraine, Moldova Candidate Status: On Thursday, the EU announced that it had granted Ukraine and Moldova candidate status for the Union. Ukraine has long sought this status, and the EU's decision to approve its candidate status is likely in part due to the Russian invasion. (https://www.reuters.com/world/europe/wind-change-europe-path-eu-opens-ukraine-2022-06-23/).
Hungary Pushes for Ceasefire, No Additional Sanctions: Speaking on the sidelines of an EU summit on Thursday, Balazs Orban, a senior aide to Hungarian Prime Minister Viktor Orban stated that the bloc should not seek any more sanctions on Russia, and instead push for Russia and Ukraine to organize a ceasefire and conduct negotiations. He stated, "At the end of the day Europe will be on the losing side of this war because of the economic problems. Our recommendation would be that we should stop the sanction process." (https://www.reuters.com/world/europe/no-more-eu-sanctions-russia-needed-negotiations-better-option-hungary-2022-06-23/).
12 EU Countries Facing Gas Disruptions: On Thursday, EU Climate Policy Chief Frans Timmermans said that 12 EU countries have been impacted by Russian gas supply cuts through the Nord Stream pipeline. Russia slashed capacity in the pipeline last week, citing difficulties in sourcing equipment due to international sanctions. (https://www.reuters.com/business/energy/russian-gas-cuts-have-hit-12-countries-eu-climate-chief-says-2022-06-23/).
Germany Moves to Gas "Alert Level": On Thursday, Germany announced that it had moved to its so-called "alert level" of its emergency gas plan. The move means that Germany now seeks a high risk of long-term gas supply shortages. The shift can come when there is "disruption of gas supply or exceptionally high gas demand which results in significant deterioration of the gas supply situation occurs but the market is still able to manage that disruption or demand without the need to resort to non-market-based measures." (https://www.cnbc.com/2022/06/23/germany-triggers-alert-level-of-emergency-gas-plan-sees-high-risk-of-long-term-supply-shortages.html).
Council of the EU Adopts Conclusions on a Framework for Coordinated EU Response to Hybrid Campaigns: The Council of the EU adopted its non-binding conclusions on a framework for coordinated EU response to hybrid campaigns. While recalling that primary responsibility for countering hybrid threats lies within Member States, the Council identified the main principle that should guide coordinated EU response. The Council notably calls on Member States to develop an efficient monitoring mechanism and to collect relevant early signals and exchange information. Priority should be given to measures aiming to mitigate and terminate the impact of a detected campaign, as well as to prevent its further expansion and escalation. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/21/council-conclusions-on-a-framework-for-a-coordinated-eu-response-to-hybrid-campaigns/).
Ireland Froze 1.72 Billion Euros of Russian Assets: The Department of Foreign Affairs of Ireland announced that Ireland has frozen €1.72 billion of assets linked to sanctioned Russian individuals and entities. This is almost double the €839 million that was contained in an EU document in early April. (https://www.irishtimes.com/business/economy/2022/06/21/ireland-freezes-172bn-of-russian-assets-following-rounds-of-sanctions/).
Council of the EU to Remove Russian Lobbies from Transparency Register: The French presidency of the Council informed national diplomats last week of its intention to have representatives of Russian interests suspended from the EU's transparency register. Inclusion in the register is a requirement for access to the European Commission, Parliament and Council premises. The European Parliament already banned lobbyists for Russia-based entities earlier this month. (https://www.politico.eu/article/eu-russia-lobbyist-ban/).
Japan Asks EU to "Avert Impact" of Russian Shipping Insurance Ban on Sakhalin Oil: Japan's Ministry of Economy, Trade and Industry has requested the EU "avert the impact" of Sakhalin equity oil liftings from the EU's ban on insuring and financing seaborne transport of Russian oil to third countries. (https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/062222-japan-asks-eu-to-avert-impact-of-russian-shipping-insurance-ban-on-sakhalin-oil).
EU to Temporarily Return to Coal Power: On Wednesday, the EU announced a temporary shift back to coal power in response to the sudden decrease in gas flow from the Russian Nord Stream pipeline. Gazprom cut supplies the line by sixty percent over the past week. The head of the International Energy Agency warned that "Europe needs to prepare immediately for the eventuality of Russia turning off all gas exports to the region this winter." (https://www.reuters.com/business/energy/russian-gas-flows-europe-via-nord-stream-ukraine-unchanged-2022-06-22/; https://www.theguardian.com/business/2022/jun/22/what-if-russia-cuts-europe-gas-exports-winter).
EU to Discuss Gold as New Target of Sanctions: Ahead of the European Council Summit on June 23-24, Reuters reports that gold is a possible new target of EU sanctions against Russia. The European Council is currently split between Member States wanting to push for a 7th package of sanctions and those wanting to focus on implementation of current measures. (https://www.reuters.com/world/europe/eu-leaders-keep-sanction-pressure-russia-gold-flagged-new-target-2022-06-21/).
Russia to Summon EU Ambassador Over Kaliningrad Transit: The Governor of Kaliningrad mentioned that the Russian foreign ministry will summon European Union ambassador to Moscow on Tuesday. This summon follows the decision of Lithuania to ban the transit of goods under EU sanctions from mainland Russia to Kaliningrad. (https://www.reuters.com/world/moscow-summon-eu-ambassador-russia-over-kaliningrad-transit-kaliningrad-governor-2022-06-20/).
African Union Calls on the EU to Ease Food Payments to Russia: Senegalese President Macky Sall, Chair of the African Union called the EU to provide some scope for African states to pay for imported agricultural products. The African Union mainly points to the consequences of the SWIFT ban and request a mechanism as for gas and oil. (https://www.politico.eu/article/african-union-chief-urges-eu-to-ease-food-payments-to-russia/).
Top Advisor to German Chancellor Suggests Focusing on Long-Term Relationship with Russia: German Chancellor Olaf Scholz's top foreign policy aide suggested Europe should focus more on preserving long-term relations with Russia and less on the specifics of German tank shipments to Ukraine. He also called for a softer approach toward China and argued that Ukraine should not be granted any "rebates" on its bid to become an EU member. (https://www.politico.eu/article/plotner-unplugged-top-germany-adviser-controversy-russia-comments/).
Airbus Calls on International Community to Spare Russian Titanium from Sanctions: On Tuesday, major European aerospace manufacturer Airbus urged the international community to avoid imposing sanctions on Russian titanium, as the company is heavily reliant on the product in its operations and approving new suppliers is difficult. Though Airbus is not the only importer of Russian titanium, American companies Boeing and Raytheon have publicly announced their intent to cease partnerships with Russian titanium providers. (https://www.wsj.com/articles/airbus-calls-on-west-to-avoid-sanctions-on-russian-titanium-11655817028).
German Exports to Russia Drop by Half: Germany's exports to Russia slumped 50 percent in May compared to the same month last year, as a result of the war and sanctions. Russia was ranked 10th among the most important destinations for German exports outside the EU in May. (https://www.politico.eu/article/german-exports-to-russia-drop-by-half-in-may/).
EU Commission President Calls to End Unanimity in Foreign Policy Decisions: EU Commission President Von der Leyen said to Politico that "In foreign affairs, we really have to move to qualified majority voting". Van der Leyen acknowledges, however, that such a major shift in EU's decision-making would be difficult to achieve. (https://www.politico.eu/article/commission-president-ursula-von-der-leyen-end-unanimity-eu-foreign-policy/).
EU Extends Crimea and Sevastopol Sanctions by One Year: On Monday, the Council of the EU extended the sanctions relating to the illegal annexation of Crimea and Sevastopol by one year. These sanctions include restrictions relating to imports of certain products, infrastructure or financial investments and tourism services, and on the exports of certain goods and technologies. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/20/crimea-and-the-city-of-sevastopol-eu-extends-sanctions-over-russia-s-illegal-annexation-by-one-year/).
Council of the EU Adopts Conclusions on Global Food Insecurity: The EU Council adopted non-binding conclusions on global food insecurity, calling for a Team Europe response to the global food insecurity. The conclusions reiterate that there are no EU sanctions on Russian exports of food to global markets. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/20/global-food-insecurity-council-approves-conclusions-on-the-team-europe-response/).
Member States Push for Seventh Sanctions Package, Funds for Ukraine: Reuters reported on Monday that "about one-third of the 27 EU governments, mostly Nordic and eastern states, want the EU Commission to begin work on a seventh round of sanctions." Draft copies of conclusions obtained by Reuters do not currently indicate new sanctions are coming, but the draft may be revised. In addition, Sweden and Poland are also calling for additional funds to Ukraine through the European Peace Facility. (https://www.reuters.com/world/europe/eu-nations-push-new-russia-sanctions-more-military-aid-ukraine-2022-06-20/).
Top EU Diplomat calls Russian Blockade a "Real War Crime": Josep Borrell, the EU's High Representative, called Russia's blockade of key grain exports from Ukraine a "real war crime" on arrival at a EU foreign ministers meeting in Luxembourg, adding that Moscow would have to be held "accountable" for its actions. (https://www.dw.com/en/ukraine-eu-condemns-real-war-crime-of-russian-grain-blockade/a-62187109).
Germany Conducts First Seizure of Sanctioned Real Estate: Prosecutors in Munich seized three private apartments and a bank account owned by a member of the Russian Duma and his wife on Monday. It is believed to be the first seizure of real estate assets of an individual sanctioned under the new Russia sanctions regime in Germany. The tenants currently occupying the apartments will continue living in the flats, but will pay rent directly to the Munich district court. (https://www.dw.com/en/germany-seizes-first-russian-owned-property-under-sanctions/a-62191796).
Russian Gas Cuts Impact Summer Filling Season: On Monday, The Wall Street Journal looked at the impact recent gas cuts had on European energy companies, noting that the summer months are typically the "filling season," where energy companies stock up on gas supplies for the winter while demand for heat is low. Given the reduction in Russian gas exports, this filling campaign is going slower than usual, which has led some countries, like Germany, to unveil mitigation strategies even while demand is low. (https://www.wsj.com/articles/less-russian-gas-puts-europes-winter-fuel-supply-in-jeopardy-11655725207?mod=hp_lead_pos10).
Polish Official Calls for Tougher Sanctions on Russia: In a Saturday interview with German newspaper Welt am Sonntag, Poland's Deputy Foreign Minister Marcin Przydacz said that the sixth EU sanctions package "was not enough to weaken Putin and his military machine sufficiently." His proposals for a seventh EU sanctions package include a total ban on the export of EU dual use goods to Russia. Polish negotiators are expected to push for a seventh EU package during an EU foreign minister's meeting on Monday in Luxembourg. (https://www.thefirstnews.com/article/poland-calls-for-tougher-sanctions-on-russia-31142).
Lithuania Bans Transit Through its Territory to Kaliningrad: Lithuania's national rail service announced on Saturday that it had banned transit through its territory of goods bound for the Russian enclave of Kaliningrad. The Governor of Kaliningrad estimated that the ban, which entered into force on Saturday, would cover 40 to 50 percent of the items Kaliningrad imports from and exports to Russia, and, if it remains in place for a long time, the Governor promised to work with the Russian government to get more ferries to move items from mainland Russia to the enclave. (https://www.aljazeera.com/news/2022/6/18/lithuania-enforces-eu-sanctions-on-goods-to-russias-kaliningrad).
Germany Announces Efforts to Reduce Gas Consumption: As Russia reduces gas shipments to countries across the EU, Germany announced measures to reduce natural gas consumption on Sunday. The country will restart coal-fired power plants and offer incentives for companies to reduce gas consumption. (https://www.wsj.com/articles/germany-steps-up-measures-to-conserve-gas-as-russia-slows-supply-to-europe-11655642717).
Italy Receives Reduced Gas Volumes from Gazprom: On Sunday, Italian energy company Eni announced that it was receiving gas from Gazprom, though at approximately 50 to 65 percent of its requested volumes. (https://tass.com/economy/1468153).
Commission Recommends EU Council to Confirm Ukraine's EU Candidate Status: On Friday June 17, 2022, the European Commissions issued its recommendation regarding Ukraine's EU candidate status, and recommended the EU Council to grant Ukraine EU candidate status. A similar opinion was issued regarding Moldova and Georgia. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3790).
EU Updates Guidance on State-Owned-Enterprises: On June 16, 2022, the European Commission updated the FAQ on State-Owned-Enterprises. The Commission added one question on the provision of legal services.https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-state-owned-enterprises_en.pdf).
EU Updates Guidance on Central Securities Depositories: On June 16, 2022, the European Commission updated the FAQ on Central Securities Depositories. The Commission added one question on the Russian National Securities Depository (NSD). (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-central-securities-depositories_en.pdf).
Germany Urges Citizens to Reduce Gas as Gazprom Cuts Supply: On Wednesday, Germany urged its citizens to reduce gas consumption as Russia curbs gas exports through the Nord Stream pipeline due to alleged technical problems. Gazprom also announced that it was experiencing problems with gas supplies to Italy, Slovakia, and Austria. European nations claim these curbs are not due to technical problems, but rather political motivations. (https://www.ft.com/content/9cdd8457-0e5a-4452-af3e-9df7107fd128).
Ukraine Contemplates Suing Russia for Environmental Crimes: Ukraine is gathering evidence and contemplating options to sue the Russian military for environmental crimes committed during the invasion as a potential source to finance reconstruction. Total damage is estimated at 6.6 billion euros. Ukraine could bring the case before its national courts, options before international courts are limited. (https://www.politico.eu/article/how-ukraine-want-make-russia-pay-for-war-environmental-damage/).
French, German, Italian Leaders visit Ukraine: French President, German Chancellor and Italian Council President visited Kyiv and Irpin today. The visit takes place ahead of a meeting of EU leaders next week, to decide whether to grant Ukraine candidate status to join the EU. (https://www.politico.eu/article/macron-scholz-draghi-kyiv-visit-zelenskyy-ukraine/).
Russia Reduces Gas Exports to Germany and Italy: Gazprom announced it was reducing capacity on the NordStream1 pipeline to 60 percent. Italian company ENI also announced on Wednesday that Gazprom had also cut supplies to Italy by 15 percent. (https://www.ft.com/content/1e972cf5-f42b-4ed8-b81b-6969dd91ccfd).
Dutch Court Rules on Termination of Contracts in Russia: A Dutch Court has established that there are legal grounds for Western contractors with outstanding contracts in Russia to terminate their commitments and exit the country, thus offering a defense against future compensation claims by former Russian clients. In a judgement published on June 9 the Rechtbank district court in Amsterdam rejected an appeal from Dutch-registered Saren — acting on behalf of Russian operator Arctic LNG 2 — seeking payment of €39.5 million ($41.2 million). (https://www.upstreamonline.com/lng/dutch-court-paves-way-for-western-contractors-to-exit-russian-lng-projects/2-1-1238544).
Russian Oligarchs Flew Jets in EU Airspace, Despite Ban: On Wednesday, German newspaper Welt am Sonntagreported that at least 30 private jets and helicopters owned by Russian oligarchs have used EU airspace, despite the bloc's ban on Russian aircraft in its airspace beginning on February 27. Aircraft belonging to Eugene Shvidler, Alexander Zanadvorov, Alisher Usmanov, Albert Avdolyan, Viktor Vekselberg, and Roman Abramovich were found in EU airspace in the research. (https://www.businessinsider.com/russian-oligarch-jets-helicopters-fly-eu-airspace-sanctions-ukraine-war-2022-6).
EU Signs Gas Deal With Israel and Egypt: The EU, Israel and Egypt signed a tripartite natural gas export deal allowing "significant" exports of Israeli gas to Europe. Israeli gas will be brought via a pipeline to Egypt's LNG terminal on the Mediterranean, where some will be liquefied and transported on tankers to European shores. In January, the EU and Israel already signed a deal for construction of an undersea electricity cable that will link the power grids of Israel, Cyprus and Greece. (EU signs gas deal with Israel, Egypt in bid to ditch Russia | Oil and Gas News | Al Jazeera).
Latvia Reports Over 400 Attempts at Sanctions Evasion: On Wednesday, Ieva Jaunzeme, head of the Latvian State Revenue Service, reported that the country has seen over 400 attempts at sanctions evasion since the start of Russia's invasion of Ukraine. She said that most of the instances involved falsified contracts to allow otherwise embargoed goods to enter the country. She added that the Service has opened over a dozen criminal cases already based on the information obtained. (https://bnn-news.com/latvian-vid-uncover-more-than-400-attempts-to-breach-sanctions-against-russia-and-belarus-235494).
Ikea Announces Closure of Russia Business: On Wednesday, Swedish furniture company Ikea announced that it would sell factories, close offices, and reduce its workforce in Russia amid restrictions and supply chain issues, although it will pay its employees through August. Ingka Group, which owned IKEA stores in Russia, will keep its separately branded "MEGA" malls open. (https://www.reuters.com/business/retail-consumer/ikea-further-scale-down-operations-russia-2022-06-15/).
EU Updates Guidance on Imports and Purchase of Goods: On June 14, 2022, the European Commission updates the FAQ on imports purchase of goods. The Commission added three questions on goods not transiting through the EU and goods already released for free circulation in the EU. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-gas-imports_en.pdf).
Germany Struggles Over Schwedt Refinery: The German government is considering temporarily handing control of the Schwedt refinery's day-to-day operations to British oil major Shell or handing operations to Polish refinery PKN Orlen. Schwedt provides most of Berlin's fuel and is majority owned by Russian oil giant Rosneft. (https://www.reuters.com/business/energy/exclusive-germanys-refinery-dilemma-tests-russian-oil-ban-resolve-2022-06-14/).
Germany to Lend up to $10.4 billion to Rescue Ex-Gazprom Unit: Bloomberg reported Tuesday that the German government will lend as much as 10 billion euros ($10.4 billion) to rescue a former arm of Gazprom PJSC, which was brought under the control of the German energy regulator in April. The plan includes a loan from state-owned KfW Group, which could eventually be converted into a direct stake under a new form of trusteeship. The name of the company will change to Securing Energy for Europe GmbH. (https://www.bloomberg.com/news/articles/2022-06-14/germany-to-lend-up-to-10-4-billion-to-rescue-ex-gazprom-unit?srnd=premium).
Natural Gas Surges in Europe Amid Lower Russian Supply and U.S. LNG Delay: Benchmark futures jumped as much as 21% Tuesday when Gazprom announced it would reduce the flow of natural gas through the Nord Stream pipeline by 40%. After a fire broke out at the Freeport LNG terminal in Texas last week, the operator is now reporting that it may take 90 days for the facility to partially restart. Full capacity won't return until late 2022, exacerbating concerns in Europe over the fragile energy market. (https://www.bloomberg.com/news/articles/2022-06-14/european-gas-prices-rise-as-fluctuating-flows-stoke-supply-fears?srnd=premium).
EU Seeks Expanded Energy Partnership with Israel: EU Commission President con der Leyen and Italian Prime Minister Draghi met with Israeli officials Tuesday as they sought to strengthen energy ties and reduce Europe's reliance on Russian gas. The parties discussed two major energy projects with Israel: a power cable connecting Israel with Cyprus and Greece, and a pipeline for natural gas and hydrogen in the eastern Mediterranean. (https://www.bloomberg.com/news/articles/2022-06-14/european-union-working-to-forge-gas-and-power-ties-with-israel?srnd=politics-vp).
EU Issues Guidance on Execution of Prior Contracts: On June 13, 2022, the European Commission issued an FAQ on the execution of prior contract exemption under the Russian sanctions schemes. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-execution-prior-contracts_en.pdf).
Italy Is Considering the Nationalization of Lukoil Refinery: Lukoil's refinery in Sicily could be severely impacted by the EU's oil ban. Italian Ecological Transition Minister Roberto Cingolani said that "there are several options under study, one is something like nationalisation…another one is that an external buyer intervenes, for example." (https://www.euractiv.com/section/energy/news/italy-minister-says-nationalisation-an-option-for-lukoil-refinery/).
EU Court Expected to Give Interim Ruling on EU Sanctions Against Alisher Usmanov: The Guardian reports that the Court of Justice of the European Union will render an interim decision on whether to suspend sanctions against Russian Oligarch Alisher Usmanov within the next two weeks. A final ruling that is likely to be made by the end of the year. (https://www.theguardian.com/business/2022/jun/08/eu-sanctions-alisher-usmanov-sisters-could-be-lifted-ecj-putin).
French, Italian, German Leaders Planning to Visit Ukraine This Week: On Sunday, sources within their respective governments stated that French President Emmanuel Macron, German Chancellor Olaf Scholz and Italian Prime Minister Mario Draghi were planning to visit Kyiv on Thursday, though they stressed that plans may change. The trip would be the first to Ukraine since the beginning of the war for the three Western leaders. (https://www.wsj.com/articles/russia-shells-chemical-plant-sheltering-civilians-ukraine-says-11655031115).
Lithuania Opens Cultural Center for Displaced Ukrainians: On Sunday, The New York Times reported that Lithuania has opened a "cultural center" for displaced Ukrainians living in the country. The center will offer education, career and psychological services, as well as recreation and child care. (https://www.nytimes.com/live/2022/06/12/world/russia-ukraine-war-news/a-new-cultural-center-in-lithuania-for-ukrainians-seeks-to-preserve-the-nations-vitality?smid=url-share).
Hungary says Russian Gas Ban Not in Next Sanction Package: Hungarian Foreign Minister Peter Szijjarto ruled out the possibility of including a Russian gas ban in the new package of sanctions of the EU, saying it would be "impossible." (https://www.cnbc.com/2022/06/10/russian-gas-ban-hungary-says-eu-cant-impose-a-gas-ban-on-russia.html).
Clearstream Stops Russian Share Conversions: Clearing company Clearstream (part of the Deutsche Boerse) halted requests to convert Russian firms' depository receipts into Moscow listed shares as a result of EU sanctions. Customers will not see any instructions, either new or already pending, related to Russian depository receipt conversions processed. (https://finance.yahoo.com/news/clearstream-halts-russian-share-conversions-112105150.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAA8BuIKKTLiDdrfE40tcd4gjxTxAZE4Ddfd5GyriPQRRKU8wKcLpwFnax4tlo_9t_Ok087VONKXjU1bmwHBUBG2Y7q3g2070t3kfHMvYv_veRJg5PEa_rnQt6wHFIRyAxBnrgSYBfu7K1awJU6SwzznLcx2OFJdJ25BdC7Glz93e).
Serbian President Does not Believe EU Sanctions are Efficient: Responding to calls implement EU sanctions, Serbian President Aleksandar Vucic said he did not believe sanctions to be "efficient." German Chancellor Olaf Scholz visited Serbia on Friday, where he pressured the country, which is currently a candidate for EU membership, to implement sanctions on Russia similar to those in place in the EU. (https://www.reuters.com/world/europe/scholz-heads-western-balkans-help-eu-membership-bid-2022-06-10/).
President Von Der Leyen Visits Kyiv: On Saturday, European Commission President Ursula Von Der Leyen visited Kyiv. In joint press availability with Ukrainian President Volodymyr Zelenskyy, she focused on the EU's commitment to rebuilding Ukraine, but the underlying purpose of the visit was to discuss Ukraine's bid for EU membership. (https://ec.europa.eu/commission/presscorner/detail/en/statement_22_3622; https://www.politico.eu/article/ursula-von-der-leyen-ukraine-europe-membership-russia-war/).
European Parliament Adopts Foreign Strategy Following the War in Ukraine: The European Parliament adopted a non-binding recommendation on the EU's Foreign, Security and Defence Policy after the Russian war of aggression against Ukraine. Members of the European Parliament (MEPs) notably recommend introducing qualified majority voting for the adoption of EU personal sanctions regimes. MEPS also recommend to bring the UK into a framework for common cooperation on defence and foreign policy matters. (https://interfax.com.ua/news/general/837995.html).
EU Announces €205 Million in Humanitarian Aid: Today, the EU announced another €205 million in humanitarian assistance for Ukraine. The announcement came while the Commissioner for Crisis Management, Janez Lenarčič, was visiting Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3549).
EU Sets Up €20 Million Support Fund for Ukrainian Start-Ups: The European Commission launched a €20 million action to support Ukrainian start-ups through an amendment of the 2022 European Innovation Council (EIC) work program. The new initiative will support at least 200 Ukrainian deep tech start-ups with up to €60,000 each. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3533).
Committee Defers Decision on Russian Credit Default Swaps: The EMEA Credit Derivatives Determinations Committee said Thursday that it would defer its decision on how to hold a potential auction on Russian credit default swaps following an update on U.S. sanctions by the Treasury Department earlier this week with the goal of allowing "credit derivatives market participants time to assess the implications that the updated OFAC (Office of Foreign Assets Control) FAQs may have on the ability of market participants to participate in an auction." (https://wtvbam.com/2022/06/09/committee-defers-decision-on-russia-cds-auction-after-u-s-sanctions-update/).
Luxembourg froze 4.2 Billion Euros in Russian Assets: Luxembourg Minister of Finance announced that the country froze 4.2 billion euros in Russian assets. According to the Grand-Duchy, 90 people and 1,100 legal entities were identified and sanctioned by Luxembourg. (https://www.law360.com/corporate-crime-uk/articles/1500682).
Freeze and Seize Task Force will Investigate Tax Fraud: The Commission announced the establishment of a group within the Freeze and Seize Task Force to help discover possible tax crimes and recover unpaid taxes as part of the effort to sanction Russia and Belarus. (https://www.law360.com/tax-authority/articles/1500722/eu-sets-up-group-to-audit-sanctioned-russians).
President of European Council Reports to Parliament after Addressing the UN Security Council: European Council President Charles Michel addressed the plenary session of the European Parliament after his speech before the UN Security Council. The President addressed the food crisis and reiterated that the EU did not impose sanctions on agricultural products. Charles Michel also mentioned the financing needs of Ukraine and said that Russia should pay to rebuild the country and said the EU is looking into the possibility of confiscating assets of sanctioned Russian individuals and entities. Finally, President Michel stated that the Commission is considering the possibility of trying to lower the gas price by capping it. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/08/report-by-president-charles-michel-to-the-european-parliament-plenary-session/).
EU Updates Russia Sanctions Guidance on State-Owned-Enterprises: On June 8, 2022, the European Commission updated its Russian Sanctions Guidance on state-owned enterprises. The Commission added a question relating to the application of the wind down period. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-state-owned-enterprises_en.pdf).
EU Commits 7.25 Million Euros to Support ICC Investigations: The European Commission launched a new project to support the investigating capacities of the International Criminal Court with 7.25 million euros to help the ICC respond to the ongoing investigations into war crimes committed by Russia in Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/MEX_22_3542).
Uncertainties on the Violation of the Blocking Statute After Greece Seized Russian Vessel:Legal uncertainties arise following the decision of the Greek authorities to seize a Russian ship transporting Iranian oil. The ship was released following a change in ownership, but Greek courts granted a request from the U.S. Department of Justice to transship the oil to an American ship in application of U.S. sanctions. Euractiv wonders if this amounts to a violation of the Blocking Statute. The EU Commission stated it does not have enough information to take position. (https://www.euractiv.com/section/politics/short_news/commission-greece-lost-in-translation-over-seizure-of-russian-ship-transferring-iranian-oil/).
EU Commission Answers Parliamentary Question on SME Support: The European Commission replied to a question from a Member of the European Parliament regarding the support to SMEs affected by the Ukrainian crisis. Commissioner Breton recalled the existence of the Temporary Crisis Framework adopted in March 2022 and of the Recovery and Resilience Facility. There are no plans for additional financial support for businesses affected by this crisis from other EU programs, he stated. (https://www.europarl.europa.eu/doceo/document/E-9-2022-000826_EN.html).
Two Actions for Annulment of Belarussian Sanctions Brought Before EU Courts: Alexander Evgenevich Shartov and company Synesis TAA, both of which are sanctioned under EU restrictive measures against Belarus, lodged actions for annulment before the General Court of the European Union. (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:62022TN0215&from=EN).
Commission Answers Parliamentary Question on Media Ban: The European Commission confirmed that only companies mentioned in Annex XV to Regulation 833/2014 will see their license suspended. However, transactions with companies associated with sanctioned individuals such as Yandex can be affected and operators need to exert appropriate due diligence when dealing with them. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001234_EN.html).
EU High Representative Answers Question on Russia Arm Embargo: EU High Representative Josep Borell, on behalf of the Commission, clarified that the exemption for pre-2014 contracts from the arm embargo was deleted by the Council and that arms exports, beyond the arms embargo in place, are subject to the Common Position of December 8, 2008. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001537-ASW_EN.pdf).
Serbia Stops Receiving Russian Oil: Following the EU's import ban on Russian oil, Serbian oil company NIS will no longer receive Russian oil from the Adriatic oil pipeline supplied by tanker via a Croatian harbor. (https://www.euractiv.com/section/energy-environment/news/eu-sanctions-fallout-serbia-to-stop-receiving-russian-oil-via-adriatic-pipeline/).
France Turns to UAE for Russian Oil Alternatives: French Finance Minister said that France is in discussions with the UAE regarding the supply of oil and diesel as an alternative to Russian oil. (https://www.politico.eu/article/le-maire-france-oil-russia-embargo-inflation/).
Deutsche Bank Offers to Relocate Russian Employees to Berlin: The Wall Street Journal reported Tuesday that Deutsche Bank had offered nearly 1500 employees from its technology center in Russia the opportunity to move with their families to Berlin. According to the report, about half of those given the offer accepted it. Deutsche Bank has not said publicly what it plans to do with the Russian center and the staff who will stay there, but it did note in March that it would be winding its Russian operations down. (https://www.wsj.com/articles/deutsche-bank-moves-hundreds-of-employees-from-russia-to-berlin-11654599210).
Cypriot Services Sector Struggling to Understand EU Sanctions Exemptions: The services sector, as well as the Ministry of Finance, in Cyprus are reportedly working to understand the EU's sixth tranche of sanctions on Russia, including the prohibition on the provision of auditing, accounting, business, administrative, and PR services to Russian entities. So far, it seems, the sanctions do not apply to the provision of services intended for the exclusive use of legal persons, entities or bodies established in Russia that are owned or controlled exclusively or jointly by a legal person, entity or body which is incorporated or constituted under the law of a Member State. The sector is trying to understand whether the exemption – a company established in Cyprus by Russians which in turn established another company in Russia – applies to Cypriot companies established by Russian entities. (https://cyprus-mail.com/2022/06/07/cypriot-services-sector-still-grappling-with-russian-sanctions-impact/).
Investigation Shows European Companies Increased Purchases of Russian Oil:According to an investigation from Global Witness, Greek, Cypriot, and Maltese shipping firms have increased their shipments of Russian oil since the invasion of Ukraine began. Investigators are skeptical that the recently announced EU ban on Russian oil will change the situation, saying that European shipping companies are still permitted to ship Russian oil to non-EU ports even with the new restrictions.(https://www.independent.co.uk/news/business/russia-ukraine-oil-sanctions-shipping-b2092658.html).
Council President Blames Russia for Food Crisis: Speaking to the UN Security Council on Monday, European Council President Charles Michel blamed Russia for the impending food crisis due to the war in Ukraine. He stressed that the EU has no sanctions on the agricultural sector, and that Russia could ship grain to non-EU nations if it wanted to. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/06/address-by-president-charles-michel-at-the-un-security-council-on-peace-and-security-in-ukraine/; https://www.politico.eu/article/at-un-michel-blames-russia-for-food-crisis/).
EU Sanctions Impact "Google of Russia": In response to EU sanctions, Arkady Volozh promptly resigned from his position as CEO and board member of Yandex NV, Russia's most popular search engine known colloquially as the "Google of Russia." Volozh does not own shares in Yandex directly, instead depositing his shares in a family trust after a 2019 restructuring. Though he called the sanctions "misguided," he promised to not give directions to the trust after his designation. (https://www.bloomberg.com/news/articles/2022-06-06/the-internet-pioneer-brought-low-as-kremlin-ally-by-eu-sanctions).
Melnichenko's Wife Plans to Contest EU Sanctions: According a statement provided to Reuters on Saturday, Aleksandra Melnichenko, wife of sanctioned Russian oligarch Andrey Melnichenko, plans to "vigorously contest the unfortunate decision" by the EU to impose sanctions on her. Aleksandra is not a Russian citizen, but the EU sanctioned her because she "takes good advantage of the fortune and benefits from the wealth of her husband." Andrey has already sued to contest the sanctions against him in EU courts. (https://www.reuters.com/world/europe/wife-russian-billionaire-melnichenko-contests-eu-sanctions-2022-06-04/).
German Press Expects Taxpayers to Pay 5 Billion More for Gas Due to Sanctions:In a survey of industry representative, German weekly Welt am Sonntag reports that German taxpayers can expect to pay 5 billion euros more in gas payments as a result of sanctions on Russia. Though the paper reported that gas supplies were not at risk, prices would increase as the German government replaces Russian gas with gas purchased on the spot market. (https://www.reuters.com/business/energy/germany-faces-5-bln-euros-year-hit-russian-gas-sanctions-newspaper-2022-06-05/).
EU Considering Options to Reduce Energy Consumption: The Wall Street Journal on Sunday reported on European efforts to reduce energy consumption. These efforts included French subsidies to homeowners to renovate their homes in a more energy-efficient manner, and bloc-wide efforts to switch from gas heating systems to electric heating systems. Still, members of European parliament warn that these efforts will take time and require significant investment. (https://www.wsj.com/articles/ukraine-war-drives-europe-to-accelerate-energy-efficiency-11654434181).
EU Adopts 6th Sanctions Package: the EU has adopted its 6th sanctions package against Russia, which notably consists of:
o Asset freeze measures against members of the Russian armed forces, officials, media personalities, oligarchs, family members of previously designated individuals and entities involved in the industrial and technological sectors.
– Grounds for authorization have been introduced for the provision of electronic communication services under certain conditions.
o A prohibition on the purchase, import, or transfer of crude oil or petroleum products originating in or exported from Russia and the provision of related services.
– Exemptions apply for:
– One-off transactions and for contracts concluded before June 4, 2022, until December 5, 2022 for crude oil and until February 5, 2022 for petroleum products, subject to notification requirements.
– Seaborne crude oil and petroleum departing or transiting through Russia provided the origin and owner of the goods are non-Russian.
– Crude oil delivered by pipeline (restrictions are foreseen on the transfer, transport or sale of crude oil delivered by pipeline into a Member State)
– For landlocked Member States if the supply of crude oil by pipeline is interrupted for reasons outside the control of that Member State.
– If required in order to meet the essential need of the purchaser in Russia or of humanitarian projects in Russia.
– Croatia and Bulgaria have longer phase-out periods.
o A prohibition on services related to the transport to third countries of crude oil and petroleum products originating in or exported from Russia.
– Exemptions apply (i) until December 5, 2022 for contracts concluded before June 4, 2022 and (ii) for oil and petroleum products departing or transiting through Russia provided the origin and owner of the goods are non-Russian.
o Extension of the list of entities for which enhanced dual-use controls apply.
o Extension of the list of items subject to controls to cover certain electronics, chemicals, and material processing items, spirits and liqueurs and heading 2303.
o Addition of exemptions for transactions with state-owned/related entities.
o Prohibition on the provision of financial messaging services (SWIFT) to Sberbank, Credit Bank of Moscow and JSC Russian Agricultural Bank and the entities in Russia they own for more than 50%, as of June 14, 2022.
o Prohibitions on the provision of accounting, auditing, including statutory audit, bookkeeping, or tax consulting services, or business and management consulting or public relations services to the Government of Russia and entities established in Russia, subject to exemptions and derogations.
o Derogation to allow for the granting of authorizations for deposits or the provision of wallet, account or custody services intended exclusively for the payment of fees or service charges for the routine holding or maintenance of frozen funds or economic resources.
o Extension of the derogations relating to the sale of transferable securities denominated in an EU currency to EEA and Swiss nationals and residents.
o The entry into force of prohibitions affecting trusts at an earlier date.
o Extension of the broadcasting prohibition to three additional entities and the advertising of products or services.
o Enforcement provisions clarify that Member States shall have criminal penalties, as appropriate, and provide for appropriate measures of confiscation of the proceeds of sanctions infringements.
o Belarussian sanctions have been reinforced with inter alia additional individuals and entities subject to asset freeze measures, reinforced trade controls, prohibition of financial messaging services to Belinvestbanks and the entities in Belarus it owns for more than 50 percent as of June 14, 2022.
See the press release and Q&A:
https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2802
https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_2823
See the legal texts:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2022:153:TOC
EU, Israel, and Egypt Near Deal on Natural Gas: Bloomberg reports that the EU is set to sign an agreement this month with Egypt and Israel to supply the bloc with natural gas amidst its efforts to reduce its dependence of Russian supplies. The memorandum of understanding outlining the terms of the arrangement is set to be signed when EU Commission President Ursula von der Leyen visits Cairo at the end of June. The deal will include Israeli natural gas being liquefied in Egyptian processing plants with the final product being shipped to the EU. (https://www.bloomberg.com/news/articles/2022-06-03/eu-egypt-near-gas-supply-deal-in-shift-away-from-russia).
Finland Cuts Russian Power Link: Finish utility company Fortum Oyj has disconnected the interconnector between Imatra in Finland and Svetogorsk in Russia until further notice, following the failure of the Finish company to pay RAO Nordic Oy, a subsidiary of Russian energy company Inter RAO, on May 14. (https://tass.com/economy/1460299).
Luxembourg Prime Minister Criticizes Hungary's Success in Removing Russian Orthodox Patriarch Kirill from Sanctions List: Speaking to the pan-European ALDE group on Friday, Luxembourg Prime Minister Xavier Bettel criticized Hungary's success in the removal of Patriarch Kirill from the latest sanctions list as "not acceptable." (https://www.reuters.com/world/europe/concessions-hungary-sanctions-not-acceptable-luxembourgs-pm-says-2022-06-03/).
Roman Abramovich and Other Russian Oligarchs Suing the EU Over Sanctions:POLITICO reported that at least 20 of Russia's most powerful oligarchs are filing cases against the European Union to unfreeze their assets and unblock their visas, based on filings at the EU General Court. (https://www.politico.eu/article/roman-abramovich-sue-eu-sanctions-assets-visas-vladimir-putin-russia-war-ukraine-mikhail-fridman-petr-aven-alisher-usmanov/).
Hungary Blocks Sanctions Against the Head of the Russian Orthodox Church: After obtaining concessions on the Russian oil embargo, Hungary objected to the proposal to sanction the head of the Russian Orthodox Church Patriarch Kirill. The objection comes as a surprise as an agreement on sanctions was expected to be reached in Council after the EU Leaders' summit agreed on the oil embargo. (https://www.politico.eu/article/hungary-throws-in-new-spanner-in-sanctions-discussions/).
EU Updated Russia Sanctions Guidance on Public Procurement: On June 1, 2022, the European Commission updated the Russian Sanctions Guidance on Public Procurement. The Commission updated a question on the types of public procurement covered by sanctions. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-public-procurement_en.pdf).
Dutch National Coordinator on Sanctions Presents His Report: This week the Dutch Coordinator for the implementation of sanctions Stef Blok presented his report to the Dutch Parliament. The report calls for the sharing of information between Member States on ultimate beneficial owners and for a protocol on how to deal with operating companies in Europe. The report also calls on the Commission to share information with authorities ahead of the publication of the official sanctions list to prevent the moving of funds before publication. (https://www.government.nl/documents/reports/2022/06/02/report-by-the-national-coordinator-for-sanctions-compliance-and-enforcement).
Multiples Actions Against EU Sanctions Before EU Courts: Politico reported that twenty businessmen, politicians, and other individuals connected to the Kremlin are suing the Council of the EU before the General Court of the EU after having been sanctioned following the invasion of Ukraine. It will take years before the General Court rules on the applications. (https://www.politico.eu/article/more-than-20-of-putins-allies-fight-back-against-eu-sanctions/).
Russian Lobbyists Banned from European Parliament:European Parliament President Roberta Metsola announced that Russian company representatives may not enter Parliament buildings "effective immediately." The ban will apply to all entities that are established in the Russia Federation and that are listed in the EU transparency register as well as entities subject to EU sanctions. (https://www.politico.eu/article/european-parliament-bars-russia-backed-lobbyists/).
EU Pushes Back on Allegations that EU Sanctions Threaten Food Security: EU Commission President Ursula von der Leyen recalls that the EU has no sanctions on food and agricultural products after Macky Sall, President of Senegal and Chair of the African Union raised concerns in an address to EU leaders. The EU and the African Union agreed on a message that puts the blame for disruptions to food supply on Russian President Vladimir Putin. (https://www.euractiv.com/section/global-europe/news/eu-steps-up-efforts-to-debunk-putins-food-security-propaganda/).
Italian Oil Imports from Russia Surge: AP News reported Wednesday that Italy has become the only country in Europe to increase Russian imports, despite the imposition of an oil embargo by the EU, as a consequence of the country's need to protect one of its largest refineries. (https://apnews.com/article/russia-ukraine-politics-economy-global-trade-b0c193007210592123112e2db1069461).
EU Working on a Ban on Russian Oil Insurance Services: The EU is said to be working with G7 members to coordinate a ban on providing the insurance services needed to ship Russian oil to any destination. Bloomberg reports that the European Commission is in talk with the UK on this issue. (https://www.bloomberg.com/news/articles/2022-06-01/europe-seeks-g-7-coordination-on-russian-oil-insurance-ban).
EU Updated Russia Sanctions Guidance on Credit Rating, Deposits, Insurance and Reinsurance and State-Owned Enterprises and Customs: On June 1, 2022, the European Commission updated the Russian Sanctions Guidance on credit rating, deposits, insurance and reinsurance and state-owned enterprises and customs. The Commission added questions for credit rating relating to scoring services, credit rating on Russian entities, rating services for third parties, and the application of credit rating provisions to persons with a temporary residence permit outside of Russia. Other questions on insurance and reinsurance relate to exemptions for subsidiaries in Switzerland and EEA countries, reinsurance of export receivables on the basis of export/insurance contracts. For state-owned enterprises, the Commission provided an interpretation of the notion of "acting on behalf or at the direction of", and of the exception provided in Article 5aa(2) of Council Regulation (EU) 833/2014. Finally, for customs, the Commission replied to questions on the return of cultural goods, daily crossing of Russian borders, and the definition of agricultural products. (https://ec.europa.eu/info/business-economy-euro/banking-and-finance/international-relations/restrictive-measures-sanctions/sanctions-adopted-following-russias-military-aggression-against-ukraine_en#customs).
EU Updated Russia Sanctions Guidance on Circumvention and Due Diligence: On May 31, 2022, the European Commission updated the Russian Sanctions Guidance on circumvention and due diligence. The Commission added a question on the authority responsible for interpreting anti-circumvention provisions. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-circumvention-due-diligence_en.pdf).
Denmark Holds a Referendum on Participation to EU's Common Defense Policy: On June 1, 2022, Danes voted on the participation of Denmark to EU's common defense policy. Denmark currently benefits from an opt-out and does not participate in EU's foreign policy where defense is concerned, and does not contribute troops to EU military missions. Polls suggest that a strong majority of Danes will vote in favor of joining EU's common defense policy. (https://www.euronews.com/2022/06/01/denmark-to-vote-on-europe-common-defence-opt-out-in-wake-of-ukraine-war).
EU Opens Door to Billions in Aid to Poland: The New York Times reported Wednesday that the EU's executive arm had endorsed a Polish plan to address the EU Commission's concerns over the politicization of its judiciary which would in turn lead to the disbursement of $38 billion in assistance. If the plan is approved, Polish officials expect the first tranche to be paid by September. (https://www.nytimes.com/2022/06/01/world/europe/poland-eu-ukraine-coronavirus.html?).
EU Leaders Agree on Russian Oil Embargo: European leaders agreed on a Russian oil embargo with a temporary exemption for pipeline imports to help landlocked states. EU officials reported that if Hungary did not commit to a cut-off date, tariffs on oil could be imposed without requiring unanimity in Council. The exemption could be a potential source of distortion to the single market with exempted-countries enjoying cheaper oil than others. Details of the embargo still need to be discussed and adopted by the Council. (https://www.ft.com/content/065d9946-b762-448b-9ab4-f1f213896d4a).
EU Summit Adopts Conclusions on Ukraine: The highly-awaited European Council conclusions mention (i) the need to gather evidence and to investigate crimes committed in Ukraine, (ii) the upcoming oil embargo, (iii) the need to continue to support Ukraine with a view to addressing humanitarian, liquidity and reconstruction needs (iv) the commitment of the EU to continue bolstering Ukraine's ability to defend itself. The conclusions also address the question of the economic and political support and the impact on neighboring countries. (https://www.consilium.europa.eu/en/press/press-releases/2022/05/31/european-council-conclusions-on-ukraine-30-may-2022/).
Gas Unlikely to be Part of a New Round of Russian Sanctions: While Baltic States and Poland want to phase-out Russian gas supplies, Estonian Prime Minister says she does not expect to see gas in the next set of sanctions as it would have an effect on Europeans. Austrian chancellor also made similar remarks. (https://www.theguardian.com/world/2022/may/31/eu-leaders-say-gas-unlikely-to-be-part-of-new-round-of-russia-sanctions).
Sberbank Said to be Cut from SWIFT Under 6th Sanction Package: Bloombergreported that Russia's biggest lender Sberbank will be cut from SWIFT under the upcoming 6th sanction package. (https://www.bloomberg.com/news/articles/2022-05-31/russia-s-biggest-lender-sberbank-targeted-in-eu-sanctions-plan?srnd=premium-canada).
Russia Cuts Gas Supply to the Netherlands, Denmark and Germany: Energy company Gazprom halted gas supply to the Dutch company GasTerra, Danish company Ørsted and Shell Energy for its contract to supply Germany. The decision follows the imposition of an oil embargo by the EU and the failure of Ørsted and Shell Energy to make payment in Rubles. GasTerra already found alternative supply sources while Ørsted said that a gas cut would not immediately put the country's gas supplies at risk. (https://www.theguardian.com/world/2022/may/31/russia-cuts-gas-supplies-dutch-state-trader-sanctions-war).
EU Power Prices Reach a New High: On Tuesday, Europe's benchmark price for power reached its highest level for 2022. In Germany, power prices for 2023 reached their highest level ever. EU's energy storage levels are 46% full which is also a 2022 high. (https://markets.businessinsider.com/news/commodities/european-power-prices-hit-new-highs-russia-gas-cutoff-sanctions-2022-5).
Croatian President Does Not Believe EU Sanctions are Effective: Croatian President Zoran Milanovic seems to believe that an all-out energy embargo against Russia is necessary. On sanctions he stated that "perhaps one day, they will start producing some effect. Currently, neither has the rouble depreciated nor is Russia feeling the financial effects". (https://www.total-croatia-news.com/politics/63263-croatian-president-does-not-believe-that-eu-sanctions-have-any-effect).
France Not Ruling out More Sanctions Against Russia: French President Emmanuel Macron stated on May 31, 2022 that, following a sixth European Union package of sanctions against Russia, nothing could be ruled out in terms of additional sanctions in the coming weeks. (https://www.reuters.com/world/europe/frances-macron-says-not-excluding-anything-about-additional-eu-sanctions-against-2022-05-31/).
Abramovich Contests EU Sanctions Before EU Court: Roman Abramovich filed a lawsuit before the General Court of the European Union following his inclusion on the list of individuals subject to an asset freeze. Abramovich holds a Portuguese passport and was forced to sell Chelsea football club after being sanctioned. (https://www.washingtonpost.com/sports/soccer/sanctioned-abramovich-files-lawsuit-at-eu-general-court/2022/05/31/d060cd16-e0f8-11ec-ae64-6b23e5155b62_story.html).
EU Updated Russia Sanctions Guidance on Credit Rating: On May 31, 2022, the European Commission updated the Russian Sanctions Guidance on Credit Rating. The Commission added two new questions on intragroup credit rating. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-credit-rating_en.pdf).
EU Commission Replies to Parliamentary Question on Aid to Rail Transporters Supporting Humanitarian Work in Ukraine: On May 30, 2022, Commissioner Vălean provided a written reply to a question from a Member of the European Parliament. In its reply, the Commission notably recalls that it adopted the Temporary Crisis Framework which recognizes that the transport of refugees and humanitarian aid do not fall in principle under EU state aid rules. (https://www.europarl.europa.eu/doceo/document/P-9-2022-001120_EN.html).
EU Commission Replies to Parliamentary Question on Implementation and Enforcement of EU Sanctions Against Russia: On May 30, 2022, Commissioner McGuinness provided a written reply to a question from a Member of the European Parliament. In its reply, the Commission notably recalls that it has set up a Freeze and Seize Task Force to ensure coordination of Member States activities in enforcing EU sanctions. (https://www.europarl.europa.eu/doceo/document/P-9-2022-001348_EN.html).
EU Launches Platform for Registration of Individuals Fleeing Ukraine: The European Commission launched a platform to register individuals fleeing Ukraine so they can enjoy their rights in all Member States while addressing instances of double or multiple registrations and limiting possible abuse. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_3384).
Tourism-Heavy Countries Brace for Summer Without Russian Tourists: On Tuesday, Al Jazeera profiled the tourism industries in Greece, Cyprus, and Turkey, popular destinations for Russian tourists that are now more difficult to access due to Russian visa restrictions. Hoteliers in Greece saw a limited drop in bookings, saying that UK tourists have largely replaced Russian tourists. Turkish authorities were less optimistic, saying that reduced purchasing power by Russian tourists would lead to $3-4 billion in losses in tourism revenue. Cypriot representatives focused on secondary effects of lost tourism, noting heavy investment in the Cypriot economy by Russians. (https://www.aljazeera.com/news/2022/5/31/tourist-destinations-gear-up-for-summer-without-russian-visitors).
Deal Reached on Russian Oil Embargo and Sixth Sanctions Package: On Monday night, European Council President Charles Michel tweeted that the Council had reached a deal to ban Russian oil imports to the EU. The move will immediately cover 2/3 of Russian oil imports to the EU. He added that the new package will include a de-Swifting of Sberbank, a ban on three Russian state owned broadcasters, and sanctions on individuals responsible for war crimes in Ukraine. Though full details of the deal are not clear, Michel's tweet likely refers to a carveout from the ban on Russian oil imports for oil transported through pipelines, which represents 30% of EU imports. Hungarian Prime Minister Viktor Orban, said the idea was "not bad," but wants insurance from the EU in case anything happens to the pipeline delivering oil to Hungary. It is unclear if EU leaders will adopt the text as proposed during the European summit (ending on Tuesday) or leave the issue entirely to the Council of Ministers.(https://twitter.com/eucopresident/status/1531391899218608133?cxt=HHwWioCwzbK0zMAqAAAA; https://www.politico.eu/article/eu-moves-step-closer-to-deal-on-russian-oil-embargo/).
EU to Consider Ways to Bypass Russian Food Export Blockade: The European Council is said to be discussing the consequences related to the difficulties in exporting food commodities. EU diplomats mentioned to Euractiv that the Council wishes to tackle the spillover effect in the Maghreb countries and in the Middle East. EU leaders are considering all available ways including a naval mission to escort cargo ships, but the lifting of the sanctions is off of the table. (https://www.euractiv.com/section/agriculture-food/news/eu-leaders-to-consider-all-available-ways-to-bypass-russian-food-export-blockade/).
Gazprom Suspends Shipments to Dutch Trader GasTerra: On Monday, GasTerra, which buys and trades energy products on behalf of the Dutch government, and Gazprom announced that the Russian gas company will no longer ship natural gas to GasTerra beginning on May 31, because the company refuses to pay for its shipments in rubles. The Dutch government stated that it had contracted elsewhere to make up for the gap in gas supply, and Gazprom stated that the suspension will continue until GasTerra pays in rubles. (https://www.reuters.com/business/energy/gazprom-suspends-gas-deliveries-dutch-trader-gasterra-2022-05-30/).
French Foreign Minister Demands Probe into French Journalist Death in Eastern Ukraine: French Foreign Minister Catherine Colonna called for an immediate and transparent inquiry into the circumstances of the death of a French journalist in Ukraine. The newly appointed Foreign Minister was visiting Kyiv when the death of the journalist was reported. (https://www.france24.com/en/europe/20220530-live-eu-to-pledge-support-for-ukraine-but-new-russia-sanctions-not-ready-yet).
EU Sanctions Against Russia Challenged Before EU Court: An action for annulment against the Decision and Regulation imposing sanctions in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine was published in the Official Journal of the European Union by a complainant under the name "OT". The sanctions are only challenged as far as they apply to the applicant. 7 pleas were raised before the General Court of the European Union. (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:62022TN0193&from=EN).
EU, Ukraine Foreign Ministers Hold Call Sunday: EU Foreign Policy Chief Josep Borell and Ukrainian Foreign Minister Dmytro Kuleba held a call on Sunday, including a discussion on the "urgency to advance on sanctions" and "how to support export of agricultural products from Ukraine and impact of Russian aggression on global food security." (https://www.ukrinform.net/rubric-polytics/3495295-borrell-kuleba-discuss-expansion-of-sanctions-pressure-on-russia.html).
German Economy Minister Fears European Unity on Russia "Starting to Crumble":Speaking at a news conference on Sunday, German Economy Minister Robert Habeck stated, "After Russia's attack on Ukraine, we saw what can happen when Europe stands united. With a view to the summit tomorrow, let's hope it continues like this. But it is already starting to crumble and crumble again." The Minister's remarks come as the sixth EU sanctions package has stalled ov