EU's 16th Sanctions Package: Law Summary
- Arne Mielken
- Feb 28, 2025
- 7 min read
Explore the EU's 2025/394 sanctions package, covering export restrictions, maritime transport, and more. Key insights for trade and sanctions pros!
In this article, we will dive into the EU’s Council Decision 2025/394, published on 24 February 2025, which introduces complex new sanctions in a legal text.
We will simplify the content for you, highlighting the key areas and the implications for your compliance efforts.
The Council Decision 2025/394, adopted on February 24, 2025, updates previous sanctions against Russia due to its destabilizing actions in Ukraine.
The main elements of his legal text are:
Support for Ukraine: The EU reaffirms its commitment to supporting Ukraine’s sovereignty and territorial integrity, condemning Russia’s ongoing aggression.
Restrictive Measures: It continues to impose sanctions, including extending the suspension of Russian media outlets' broadcast licences in the EU. These media are seen as tools of propaganda that support Russia’s war and destabilize neighboring countries.
Export Restrictions: The decision tightens restrictions on the export of dual-use goods and technology to Russia’s military and security sectors. It also adds 53 new entities involved in Russia's military actions to the sanctions list.
Prohibitions on Certain Imports: The EU introduces new restrictions on Russian goods like primary aluminium and expands prohibitions on goods contributing to Russia’s military capacity.
Transport and Energy: The decision imposes bans on specific transport services, including the transport of goods by road, and also restricts services related to Russian energy projects like LNG and crude oil.
Diamonds and Infrastructure: There are new requirements for the traceability of rough diamonds and a ban on EU involvement in construction and infrastructure services supporting Russia's economy, particularly related to military equipment.
Ports and Financial Transactions: It prohibits transactions with Russian ports involved in the transport of military technology and restricts financial services supporting Russia's resilience or circumventing sanctions.
Let's explore the specific changes, article by article, providing an ideal introduction to the key modifications to simplify the need to read legally dense text.
Stay Informed with The Export Control & Sanctions Watch
To navigate the complexities of these new restrictions, subscribe to The Export Control & Sanctions Watch - out weekly flagship magazine to keep you up to date with the latest changes in the world of export controls & sanctions.
Our expert insights help businesses remain compliant and avoid costly penalties. Stay updated on evolving EU, UK, and US sanctions regimes.
Leave your e-mail address at www.customsmanager.info to get started.
Comes with a free 7 days trial.
Council Decision (CFSP) 2025/394 amends article 1 of Decision 2014/512/CFSP
Article 1ac:
Updated to prohibit transactions with entities involved in claims against persons under EU sanctions in Russian courts based on certain Russian laws or equivalent legislation.
Article 1ad:
Introduced a derogation allowing transactions related to export credit repayment, divestment from Russia, or execution of contracts concluded before February 25, 2025, under specific conditions and timelines.
Article 1ae:
Replaced with new provisions prohibiting transactions with non-EU entities involved in certain transactions with Russia related to dual-use goods, military items, or circumvention of sanctions. Exemptions apply for specific goods, judicial purposes, and humanitarian aid.
New Article 1af:
Introduced a ban on transactions with certain Russian ports and airports, particularly those involved in the transfer of UAVs, missiles, or military goods, and those facilitating circumvention of sanctions. Some exemptions apply for humanitarian purposes and essential goods transport.
Article 1b:
Added a point regarding necessary transactions for the restructuring or liquidation of entities related to specific listed entities under Decision 2014/145/CFSP.
Article 1f:
Expanded to include civil society and media activities in Russia promoting democracy, human rights, or the rule of law, funded by the EU or partner countries.
Article 1h:
Updated to include entities acting on behalf of persons/entities mentioned in previous points, tightening restrictions.
Article 1i:
Amended to prohibit providing support (including financial assistance) under EU or national programs to entities linked to Russia.
Article 1k:
Prohibited providing services (construction, engineering, legal, IT) to the Russian government or entities. It also added a provision about the sale or licensing of intellectual property or trade secrets to Russian entities. A derogation was introduced for certain consular and diplomatic services.
The amendments primarily aim to tighten sanctions against Russia, restrict financial and service-related transactions, and prevent circumvention of measures, while providing some limited exemptions for specific humanitarian or operational needs.
Council Decision (CFSP) 2025/394 amends article 3 of Decision 2014/512/CFSP
Article 3a amendments:
Exemptions for non-military use: The prohibitions in paragraphs 1 and 2 do not apply to goods and technology for non-military use, including humanitarian and medical purposes, if not listed in Annex XL.
Reporting requirements: Exporters must declare these exemptions in customs declarations and notify the competent authority in the Member State of the first use in Russia.
Exemptions for transit: The prohibition on the transit of certain goods through Russia does not apply to goods for non-military uses.
New reporting requirements: Member States must provide reporting on exemptions used under this article.
Article 3a(4) changes:
Authorisation can be given for the export of goods or technology for specific non-military uses, including space programmes, civil nuclear cooperation, maritime safety, cybersecurity, and medical purposes.
Transit authorisation: The competent authorities may also authorise transit of certain goods through Russia for specific non-military purposes, such as cybersecurity and civil nuclear cooperation.
Article 3b amendments:
Prohibition on goods to entities listed in Annex IV: It remains prohibited to export dual-use goods and technologies, or those listed in Annex VII, to entities in Annex IV of the regulation.
Technical assistance and services: It is prohibited to provide technical assistance, brokering services, financing, or intellectual property rights related to these goods to entities listed in Annex IV.
Exemptions for humanitarian and contractual purposes: Authorisation may be granted for the export of goods or the provision of assistance under specific conditions, such as for humanitarian purposes or contracts concluded before 26 February 2022.
Council Decision (CFSP) 2025/394 amends article 4 of Decision 2014/512/CFSP
A new paragraph (1a) prohibits the sale, supply, transfer, export, or provision of software listed in Annex II to Regulation (EU) No 833/2014 to any entity in Russia or for use in Russia.
Paragraph 2 is revised to prohibit providing technical assistance, brokering services, or financing related to the goods and technology referred to in paragraph 1 and 1a for Russia or entities within Russia.
A new paragraph (3a) allows the sale, supply, or export of software for contracts concluded before 25 February 2025, with conditions until 26 May 2025.
Paragraph 4 is deleted, and paragraph 6 is revised to allow derogations for certain activities under specific conditions.
Article 4a:
A new paragraph (3b) allows authorization for mining and quarrying activities related to specific materials.
Paragraph 4 is revised to require Member States to inform the Commission about any authorizations granted under specific paragraphs.
Article 4b:
A new paragraph (2a) allows for public financing or financial assistance for small and medium-sized enterprises (SMEs) in the Union, up to EUR 10 million per project.
A new paragraph (5) requires Member States to inform the Commission of any authorizations granted under specific paragraphs.
Article 4e:
Paragraphs 1 and 1b prohibit Russian air carriers and aircraft owned or chartered by Russian entities from landing, taking off, or overflying the Union, with exceptions for emergency situations.
New provisions allow derogations for aircraft used for humanitarian purposes or private non-commercial flights, under specific conditions.
Article 4k:
New paragraphs (3cg) and (3ch) allow for the import and transport of specific goods (CN code 7601) under certain conditions between 2025-2026.
New derogations are introduced for goods related to Budapest metro and the Druzhba pipeline, with specific conditions for maintenance or repair purposes.
Article 4m:
New derogations allow authorization for the export of specific goods related to the Druzhba pipeline or civilian non-public electronic communication networks, under specific conditions.
Certain chemicals, plastics, and rubber are exempted from prohibitions until 26 May 2025 for contracts concluded before 25 February 2025.
Other Changes
These changes primarily focus on updating prohibitions, creating exceptions, and specifying authorization conditions related to the sale, transfer, export, and use of goods and services, particularly in the context of Russia and certain restricted items.
These amendments focus on allowing exceptions for the export of certain goods for humanitarian and medical purposes, while maintaining strict controls on exports to entities in Russia's military or defence sectors. The introduction of reporting requirements aims to ensure transparency and oversight.
The article updates and replaces several provisions regarding export controls and legal enforcement within the EU, particularly related to Russia.
Article 5bb:
New requirements for natural and legal persons selling, supplying, transferring, or exporting high-priority items (as listed in Annex XL to Regulation (EU) No 833/2014) or other sensitive goods. They must:
Assess and document the risks of exporting to Russia.
Implement policies and controls to mitigate these risks.
These requirements apply starting 26 December 2024 for items in Annex XL and 26 May 2025 for other sensitive goods.
Exemptions apply for transactions within the EU or to partner countries listed in Annex VII.
The requirements also extend to entities outside the EU owned or controlled by Union-based entities.
Article 7a:
No Russian court orders (from Article 248.1 or Article 248.2 of the Arbitration Procedure Code or equivalent) will be recognized or enforced in EU Member States.
No assistance requests or sanctions based on Russian criminal law regarding such court decisions will be recognized.
Article 8c:
The EU Council, acting unanimously, will amend multiple annexes related to export controls and sanctions (Annexes I, II, III, etc.).
Amendments to Annexes:
Specific amendments to the annexes take effect starting 9 April 2025, based on Council decisions.
The decision will come into force the day after its publication in the EU Official Journal, dated 24 February 2025.
Comments