Council Regulation (EU) 2023/2878 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine

New Council Regulation (EU) 2023/2878 concerning restrictive measures with respect to Russia’s action to destabilize the situation in Ukraine was published in the Official Journal (OJ) of the EU. The regulation modifies Council Regulation (EU) No 833/2014 primarily to implement further trade restrictions or restrictions relating to the provision of ancillary services. The key provisions of the new regulation are briefly described below:
##### Council Regulation (EU) 2023/2878
– expands the list of products that are prohibited to be sold or exported to the Russian Federation or any other country for the use in Russia to include, for instance, certain chemicals, electrical goods, metals, certain vehicles, and machine parts. These items primarily concern goods that may be used for military purposes.
– establishes restrictions on the import, acquisition, supply, and delivery of diamonds and diamond jewelry originating in the Russian Federation, including non-industrial and synthetic diamonds, wristwatches, goldsmiths’ or silversmiths’ wares, and others as defined in new Annex XXXVIIIA.
– prohibits the provisions of ancillary services related to above noted goods such as (trade) financing, brokerage, insurance, or technical assistance.
– provides that competent authorities may approve certain imports (technological and iron goods) up to June 30, 2024 for purposes of divestment from Russian source supply.
– extends the exemption from the Russian crude oil import prohibition into the Union for certain Member States by one year.
– includes an exemption that allows for loans or credits to be provided to Russian energy sector entities, even if they fall under the transaction ban specified in Regulation (EU) No 833/2014 provided certain conditions are met.
– enhances the price cap mechanism for the import or transport of Russian crude oil by requiring the provision of additional information, such as line items information on costs of transport including insurance, to prevent circumvention. This information needs to be readily available by all entities down the value chain.
– implements new notification requirements for the sale of tankers to any third country.
– establishes reporting obligations of EU entities owned or controlled by Russian entities or persons (ownership of more than 40%) – directly or indirectly – to report on a quarterly basis transactions to non-EU countries which exceed EUR 100,000 to national competent authorities.