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HomeEU adopts ninth sanctions package in response to Russia’s invasion of Ukraine

EU adopts ninth sanctions package in response to Russia’s invasion of Ukraine

The EU has further expanded the sanctions regime against Russia. New measures include additional export restrictions on a wide array of items, and updated asset freeze lists.
19 December 2022

Other notable measures include a prohibition on EU nationals holding any posts on the governing bodies of Russian State-owned entities or legal persons etc. established in Russia, and a new possibility for national competent authorities to authorize certain otherwise forbidden transactions, which are strictly necessary for EU companies to withdraw from or divest their Russian activities.

The new sanctions package entered into force on 17 December 2022. The measures are set out in three different regulations accessible here, here and here.

Below, we outline a selection of key changes to be noted by Danish companies to ensure continued compliance with EU sanctions against Russia.

New export restrictions

Regulation 2022/2474[1] (amending Regulation 833/2014) significantly expands the existing export restrictions on goods and technologies. The regulation introduces new items to Annex VII, XI, XVII, XXIII, XXV, Annex XXXI and Annex XXXII, which contain restrictions on export of items such as dual-use items, advanced technologies, aircraft engines and their parts, luxury goods, and industrial components.

Further, the list of entities connected to Russia’s military and industrial complex has been significantly expanded by the additional of 168 new entities. This entails that even tighter controls in respect of sensitive dual-use and advanced technologies will apply to these newly listed entities.

Items subject to enhanced export restrictions include generators, drone engines, laptops, hard drives, IT components, night-vision and radio-navigation equipment, cameras and lenses and much more.[2] Notably, the export ban regarding drone engines applies to both direct exports to Russia and exports to any third country that could supply drones to Russia.

New exit licenses and exemptions to import restrictions

Regulation 2022/2474 also introduces a new possibility for EU companies to apply for permission from their national sanctions authorities to exit from Russia, including by way of a sale of a Russian subsidiary, even if the Russian subsidiary holds export-controlled items.  This entails that going forward it will be possible to apply for permission to sell or transfer a large number of products covered by the EU’s export ban when it is strictly necessary to carry out a divestment and withdrawal of a Russian business.

Export-controlled items covered by the exit authorization scheme include dual-use items; advanced technology; items for extraction, transport, refining, etc. of oil and gas; marine goods and technology; luxury goods and industrial components. Similarly, it will be possible to apply for authorization to import certain iron and steel items and items that generate significant revenues for Russia (as set out in Annex XXI) in connection with an exit.

Before a license can be granted, it is inter alia a requirement that the goods in question were already in Russia before the respective import and export bans came into force (most of which date back to the period between March and June 2022). It is also a requirement that the national authorities do not have reasonable grounds to believe that the products may be for a military end user or for military end use in Russia.

The permit will have to be obtained from the national competent authority, which we assume will be the Danish Business Authority, the Danish Maritime Authority and the Danish Customs Agency. The authorities will be able to grant permission until 30 September 2023 – in other words, this is a temporary arrangement, and given that permission will generally also have to be obtained from the Russian authorities, timing is an important factor.

We expect that the Danish authorities will soon publish further information on how to obtain a permit.

Financial restrictions and restrictions on business services

Regulation 2022/2474 also prohibits EU nationals from sitting on governing boards on Russian State-owned enterprises, including joint-ventures with a Russian State majority/controlling influence. Further, it is prohibited to make new investments in the Russian mining sector, with the exception of mining and quarrying activities involving certain critical raw materials.

The regulation also enhances restrictions on consultancy services, as it contains bans on provision of advertising, market research and public opinion polling services, as well as product testing and technical inspection services to the Russian Federation and to legal persons, entities or bodies established in Russia (certain exceptions apply).

Specific individuals and entities subject to asset freezes and other restrictions

Regulation 2022/2474 places the Russian Regional Development Bank on Annex XIX, which means that it is now subject to a full transaction bans. Additionally, four Russian media outlets have been subject to a broadcasting ban.

Finally, Regulation 2022/2475[3] and Regulation 2022/2476[4] imposes asset freezes on almost 200 additional individuals and entities to the asset freeze lists including two Russian banks, Credit Bank of Moscow and JSC Dalnevostochniy Bank. The new listings includes the Russian armed forces, as well as individual officers and defence industrial companies, members of the State Duma and Federation Council, ministers, Russian proxy authorities in occupied areas of Ukraine and political parties, among others. This list covers key figures involved in in Russia’s deliberate missile strikes against civilians, in the kidnapping of Ukrainian children to Russia, and in the theft of Ukrainian agricultural products.

Impact on Danish companies

The scope of applicable sanctions targeting Russia has again been extended and Danish companies should ensure that their sanctions compliance programmes, policies, screening processes and payment processes are updated to ensure that the newly enacted sanctions are appropriately addressed. Furthermore, the new exit possibility provides a much needed helping hand for Danish companies wanting to leave the Russian market.

In light of the enhanced export controls and new additions to the asset freeze lists, we recommend that Danish companies conduct re-screening of products and business partners.

We further recommend to closely monitor the situation in order to ensure compliance with potential new restrictions which may be imposed with short notice, as we understand that further sanctions may be underway.

Gorrissen Federspiel closely follows the developments of sanctions against Russia and we can assist with the interpretation of and compliance with the applicable sanctions, as well as implementation of measures to ensure that sanctions are observed. If you have any questions, please contact a member of our Compliance & Sustainability team.

For more information on the previous EU sanctions packages, please see Gorrissen Federspiel’s newsletter of  7 October, newsletter 8 June 2022, newsletter of 11 April 2022, Gorrissen Federspiel’s newsletter of 16 March 2022, Gorrissen Federspiel’s newsletter of 10 March 2022, Gorrissen Federspiel’s newsletter of 2 March 2022, Gorrissen Federspiel’s newsletter of 28 February 2022 and Gorrissen Federspiel’s newsletter of 24 February 2022.

[1] Council Regulation (EU) 2022/2474 of 16 December 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine


[3] Council Regulation (EU) 2022/2475 of 16 December 2022 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

[4] Council Regulation (EU) 2022/2476 of 16 December 2022 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

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