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Writer's pictureArne Mielken

6th EU Sanctions against Russia Package: Oil Embargo

The EU decided that the sixth package of sanctions would include crude oil and petroleum products sent by Russia to EU Member States. We break it down + law


A temporary exception will be given for crude oil transported through a pipeline. In the event of a sudden disruption in supply, emergency actions will be implemented to guarantee supply security.

"The European Council was able to agree on the sixth package of sanctions that would allow us to prohibit Russian oil with a temporary exemption for oil flowing via pipeline," said Charles Michel, President of the European Council. “This implies that 75 percent of Russian oil is directly impacted. That implies that by the end of the year, this legislation will have covered roughly 90 percent of Russian oil shipped into Europe”.


The summary

The agreed-upon package contains a number of measures aimed at effectively impeding Russia's ability to continue its actions.


Oil


  • The EU resolved to ban the purchase, import, or transfer of Russian crude oil and certain petroleum products into the EU. The withdrawal of Russian oil will take six months for crude oil and eight months for other refined petroleum products.

  • A temporary exemption is planned for crude oil pipeline imports into EU member states who, owing to their geographical location, are reliant on Russian supply and have no viable alternative choices.

  • Furthermore, Bulgaria and Croatia will benefit from temporary exemptions on imports of Russian seaborne crude oil and vacuum gas oil, respectively.

Additional Russian and Belarussian banks have been de-SWIFTed.


The EU is expanding the existing prohibition on the provision of specialised financial messaging services (SWIFT) to three more Russian credit institutions - Russia's largest bank Sberbank, Credit Bank of Moscow, and Russian Agricultural Bank - as well as the Belarusian Bank For Development And Reconstruction.


Broadcasting


The EU has suspended three additional Russian state-owned outlets' broadcasting operations in the EU: Rossiya RTR/RTR Planeta, Rossiya 24 / Russia 24 and TV Centre International. The Russian government has utilised these mechanisms to manipulate information and spread falsehoods regarding the invasion of Ukraine, including propaganda, in order to destabilise Russia's neighbours as well as the EU and its member states. In accordance with the Charter of Fundamental Rights, these regulations will not preclude those media outlets and their employees from engaging in activities other than broadcasting in the EU, such as research and interviews.


Export controls


The EU is increasing the list of individuals and companies subject to export restrictions on dual-use products and technology. Russian and Belarussian entities have been added to the list. Furthermore, the EU will broaden the list of items and technologies that may help to Russia's defence and security sector's technical advancement. This will comprise 80 compounds capable of being utilised to create chemical weapons.


Services for consulting


Accounting, public relations, and consulting services will be prohibited by the EU.


Listings of individuals


Furthermore, the Council decided to sanction additional individuals and entities, including those responsible for atrocities committed by Russian troops in Bucha and Mariupol, war supporters, leading business people and family members of listed oligarchs and Kremlin officials, as well as defence and financial organisations.


The Rules

  • On June 3, 2022, the Council passed Decision (CFSP) 2022/884, which added more restrictions in a number of areas.

  • It adds three more Russian credit institutions to the list of those who can't offer specialised financial messaging services.

  • It also adds more people to the list of those with ties to Russia's defence and industrial base who have to follow stricter export rules for dual-use goods and technology, as well as goods and technology that could help improve Russia's defence and security technology.

  • The EU has added more items to its list of controlled items that could help Russia improve its military and technology or build up its defence and security sector.

  • The EU also suspends Russian media broadcasting licences because Russia is manipulating and distorting news and media to destabilise its neighbours and the EU.

  • There are bans on buying, importing, or transferring Russian crude oil and various petroleum products into the Member States, as well as on ensuring and re-insuring the marine movement of these goods to third nations. Transitions are necessary.

  • Due to the location of the certain Member States, which renders them dependent on pipeline crude oil from Russia and leaves them with no alternative short-term supply choices, import sanctions on Russian crude oil do not apply to pipeline imports into these Member States until the Council determines otherwise. Member states should identify alternate oil sources to seize Russia's crude oil pipeline imports as quickly as possible.


We dedicate a special section on our expert blog to Russian Sanctions, where you can read explainer articles, videos and more, for example:


How we can help


We help with understanding sanctions. We analyse the impact on your business and show you ways to comply with sanctions. We offer extensive training on sanctions, and we also provide restricted party screening solutions for your business. Schedule a call today on www.customsmanager.org


Sources






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