Sixth package of EU sanctions against Russia enters into force

BRUSSELS. June 3 (Interfax) - The Official Journal of the European Union published details of the sixth package of sanctions against Russia on Friday.

The package envisages a ban on the imports of crude oil and certain types of petroleum products from Russia. The phased ban on crude oil imports will be imposed within up to six months, and the imposition of a ban on imports of petroleum products will take up to eight months.

The package has not gained full approval by EU members. For instance, Hungarian Prime Minister Viktor Orban achieved Hungary's exclusion from the Russian oil embargo for deliveries made through the Druzhba pipeline. Certain concessions have been made for Slovakia, which also may continue Russian oil imports through the pipeline. However, eight months later, the oil supplied through the pipeline will be permitted for use exclusively in the production of products for the domestic market and for exporting petroleum products to neighboring Czech Republic, for another ten months.

Croatia will also be able to import certain types of petroleum products from Russia as well.

In addition, the EU will de-SWIFT another three Russian banks, namely, Sberbank, Credit Bank of Moscow, and Rosselkhozbank, as well as the Belarusian Bank for Development and Reconstruction.

According to the publication, CEO and co-founder of Yandex Arkady Volozh has been put on the EU sanctions list.

"Volozh is a leading businessperson involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation," the document reads.

Arkady Volozh is the main Yandex shareholder with 86.24% Class B shares. Volozh has almost no Class A shares, but his Class B shares provide him with 45.27% of total voting power.

The EU journal says "Russian state-owned banks such as Sberbank and VTB are shareholders and investors in Yandex." VTB bought a minority stake in a Yandex share issue, receiving 1.4% of shares and 0.7% of votes. Sberbank owned a golden share until 2019.

"In 2019, Yandex agreed to a restructuring that gave a 'golden share' to a newly formed Public Interest Foundation built to 'defend the Russian Federation interests'. Through the Public Interest Foundation, the Government of the Russian Federation is able to have a veto over a defined list of issues, such as the sale of material IP and the sale or transfer of Russian users' personal data to foreign companies, both of which are deemed to affect Russia's 'national interest'," the EU journal says.

Prior to this, EU sanctions were imposed on Tigran Khudaverdyan - at that time, he was the managing director of the company. After this, Khudaverdyan left his position and the Yandex board of directors.

The National Settlement Depository (NSD) (part of the Moscow Exchange Group) has been included in the EU sanctions list as well, according to the document.

The document notes that NSD, as the central depository, plays an important role in the functioning of the Russian financial system and its interaction with the international financial market.

The EU document also states that Moscow Exchange, which owns NSD, is largely controlled by the Russian authorities.

PJSC Kamaz, Russia's largest manufacturer of heavy-duty trucks, and Ulyanovsk Automobile Plant (UAZ), the main asset of PJSC Sollers automaker, have been included in the sanctions list, according to the publication.

According to the publication, the EU has imposed sanctions against Kamaz and UAZ because their manufactured vehicles are involved in Russia's military operation on the territory of Ukraine.

The document specifies that particularly the KAMAZ-5350, KAMAZ-6350 and KAMAZ-6560 vehicles, as well as UAZ Patriot vehicles, are utilized for military purposes.

The European Union has included the tire-manufacturing enterprises of Tatneft, including Tatneft-Neftekhim Management Company LLC, Nizhnekamsk Truck Tire Plant LLC, PJSC Nizhnekamskshina and Kama Trading House LLC, in its sanctions list.

As published in the document, the EU has imposed sanctions specifically against these enterprises because they manufacture and supply tires for Russian vehicles and equipment that are utilized in Russia's military operation on the territory of Ukraine.

Restrictions are also imposed on 65 persons and 18 legal entities from Russia associated with the defense sector, politics and mass media, the Official Journal of the European Union said.

The sanctions have been imposed on head of the Russian National Defense Control Center Mikhail Mizintsev, Kremlin spokesman Dmitry Peskov's daughter Elizaveta, son Nikolai and wife Tatyana Navka, and Olympic champion, and Chairperson of the National Media Group Board of Directors Alina Kabayeva.

Roskomnadzor head Andrei Lipov and a number of Russian journalists have been added to the EU restrictive list.

The EU has also placed head of the Kherson military-civilian administration Vladimir Saldo and deputy head of the Kherson military-civilian administration Kirill Stremousov under sanctions.

The sanctions were imposed on businessman Alexei Mordashov's wife Marina, businessman Yevgeny Prigozhin's son Pavel, and Russian businessmen Eduard Khudainatov and Arkady Volozh.

Russian Armed Forces officers, whose units took part in the Russian special operation in Ukraine in the Bucha area, have been included in the EU sanction lists.

There are no restrictions against Patriarch Kirill of Moscow and all Russia, as expected, due to objections raised by Hungary.

The EU sanctions will also apply to PJSC Sukhoi, Independent Insurance Group, JSC Voyentorg, JSC Oboronenergo, JSC Voyentelecom, and LLC Voyentekstilprom.

The European Union also imposed sanctions against 12 individuals and eight legal entities in Belarus, including Belaruskali and the Belarusian Potash Company (BPC), Belaruskali's trader.

Specifically, Belarus's Naftan oil refinery; the country's largest tobacco manufacturer, Neman Grodno Tobacco Factory; and the private tobacco manufacturer Inter Tobako, have been included in the EU's sanctions list. Sanctions have also been imposed against Belkommunmash, which manufactures municipal vehicles; and against state-owned Beltamozhservice, the country's largest logistics operator.

The EU has also imposed sanctions against Belarus's mass media company, Belteleradiocompany.

According to the EU document, personal sanctions have been imposed against Belaruskali general director Ivan Golovaty, as well as against a number of representatives of law enforcement agencies and employees in state media.