27 Feb 2023 10:51

Council of European Union's resolution on 10th package of sanctions against Russia takes effect

BRUSSELS. Feb 27 (Interfax) - The European Union regulations for the 10th package of sanctions against Russia over the events in Ukraine, which were endorsed in a written procedure on Saturday, have taken effect.

"The relevant legal acts, including the names of the listed individuals and entities, have been published in the Official Journal of the EU," the resolution of the Council of the European Union, published on Saturday, said.

The Council said earlier in a statement that the approved package of sanctions envisages restrictions on three Russian banks, alongside imports of asphalt and synthetic rubber, transit of dual-use goods and technologies via Russia, and seven Iranian drone manufacturers.

"It is also appropriate to extend to three newly-listed banks derogations from the asset freeze and from the prohibition on making funds and economic resources," the document said.

As expected, the European Union imposed restrictions on Russia's National Wealth Fund, as the Russian authorities planned to use the Fund for compensating the budget deficit in 2023-2024.

The EU listed Petr Aven, German Khan, Mikhail Fridman, Cyprus-based Alfa Capital Markets, Alfa Forex, Alfa Leasing, Amsterdam Trade Bank NV, Alfa-Bank;s subsidiary in Kazakhstan and ABH Holdings among companies and persons associated with Alfa-Bank.

It named Vladimir Potanin and TCS Group Holding among companies and persons associated with Tinkoff Bank.

The Council of the European Union's statement said that the new package of sanctions includes restrictions on exports of essential technologies and manufactured goods, such as electronics, specialized vehicles, such as snowmobiles, vehicle parts and spares, building materials and structures, and goods used by the aircraft industry.

The Council banned the provision of gas storage facilities (including those for LNG) to Russian citizens in order to ensure security of gas supply to the EU and "in order to avoid Russia's weaponization of its gas supply and risks of market manipulation."

The new sanctions package of the European Union applies to the Russian National Reinsurance Company owned by the Russian Central Bank.

As of this moment, the Russian National Reinsurance Company is the chief reinsurer of Russian vessels exporting Russian oil, including the fleet of Sovcomflot , as Western insurance companies revoked coverage of Russian ship owners due to sanctions, says the explanatory note published by the Official Journal of the European Union on Saturday. The Russian National Reinsurance Company thus mitigates the effect of sanctions imposed on Russia over the events in Ukraine, it said.

The new restrictions apply to exports to the European Union roughly totaling 11.4 billion euros, the statement said. Together with this package, the EU restricts nearly half (49%) of its exports to Russia.

There is a ban on asphalt and synthetic rubber imports totaling about 1.3 billion euros.

It is prohibited to transit dual-use goods and technologies to the European Union via Russia.

Additionally, there are restrictions on mass media: Arabic-language services of RT and Sputnik are prohibited from airing their programs in the European Union.

There is a ban on Russian citizens as members of management bodies of critical infrastructure companies in EU member states. Aircraft operators are compelled to report to the respective national authorities irregular flights between the European Union and Russia either directly or through third countries.

As reported earlier, the new sanctions lists consist of 121 individuals and entities.

There are also restrictions on seven Iranian enterprises, which the EU suspects of manufacturing drones.