EU further extends the scope of sanctions on Belarus to fight circumvention

On 29 June, the European Commission welcomed the adoption of a new set of sanctions against Belarus by the Council of the EU given its involvement in Russia’s illegal war of aggression against Ukraine.

“The close integration of the Russian and Belarusian economies has substantially facilitated the circumvention of existing sanctions against Russia,” says the European Commission’s Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR) in a press release. “This new set of sanctions against Belarus mirrors several of the measures already imposed on Russia, making EU sanctions against Russia more effective.”

The new measures are tailored given the specific characteristics of EU-Belarus trade and affect various sectors of the Belarusian economy, including trade, services and transport.

Trade

Export restrictions on dual-use and advanced technology goods have been extended and new restrictions have been introduced on goods, which could contribute to the enhancement of Belarusian industrial capacities, as well as maritime navigation equipment, oil refining technology and certain luxury goods. Imports of goods allowing Belarus to diversify its sources of revenue as well as gold and diamonds have been prohibited.

Anti-circumvention

EU operators must now undertake their best efforts to prevent their foreign subsidiaries from engaging in activities that undermine sanctions.

The transit of certain goods (e.g. dual use, advanced technology, firearms, aviation-related materials) via Belarus is now prohibited. Moreover, EU exporters must include a “no-Belarus clause” in new contracts and EU operators trading in battlefield goods must implement due diligence mechanisms.

The package also introduces the possibility for the Council to impose targeted measures against individuals or entities that circumvent the sanctions or that significantly undermine their purpose or effectiveness.

Services

The provision of services to Belarus, its government and related entities is now restricted, including accounting, auditing, engineering and advertising services.

Road transport

Restrictions have been extended to include the use of trailers or semi-trailers registered in Belarus. In addition, the existing prohibition to transport goods by road in the EU, including transit, now also applies to EU companies owned 25% or more by Belarusian persons.

Other

The new measures enable EU operators to claim compensation for damages caused by Belarusian entities linked to sanctions implementation and expropriation. The Commission will continue to monitor the possible circumvention of sanctions on Russia via Belarus and stands ready to support further alignment between the two sanctions regimes, said DG NEAR.

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Press release