Sanctions against Russia
56 Commons Library Research Briefing, 22 March 2023
owned companies subject to sanctions has been extended into the defence
sector. Russian individuals will also be restricted from depositing money in EU
banks over a certain value.
On 2 March the EU also announced that the Russian Direct Investment Fund
would be sanctioned and that the sale, supply, transfer or export of euro
denominated banknotes to Russia would be prohibited.
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That ban was
extended to banknotes in any official currencies of the EU member states on 8
April 2022.
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On 9 March the EU confirmed that financial restrictions would also apply to
"crypto assets" and thus "ensure the proper implementation of the sectoral
restrictions in place".
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On 8 April the EU also announced a total asset freeze on four Russian banks:
Okritie, VTB, Sovcombank and Novikombank,
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a general ban on the
participation of Russian companies in public procurement in EU member
states and the exclusion of all financial support to Russian public bodies.
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As part of its sixth sanctions package announced on 3 June, the EU confirmed
that a further three banks: Sberbank, Credit Bank of Moscow and the Russian
Agricultural Bank, would be cut off from the SWIFT international payments
system.
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Ending Russia's Most Favoured Nation (MFN) trading status
On 15 March the European Commission announced that the EU, alongside G7
nations and other "like minded partners", including Australia, Albania,
Iceland, South Korea, Moldova, Montenegro, New Zealand, North Macedonia
and Norway will end Russia's MFN status "as of today".
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The EU said that such actions were "justified under the security exemptions of
the WTO agreement".
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Sector specific trade restrictions
The EU has introduced an export ban on specific goods and technologies
related to the oil refining sector, the aviation and space industry and on dual-
use goods and technologies related to the defence and security sector,
including semi-conductors and cutting-edge technologies such as drones and
associated software, and encryption software. It will also introduce
restrictions on the provision of related services.
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EU Official Journal, L63, Vol.65, 2 March 2022
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Council of the European Union, Press release, 8 April 2022
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Council of the European Union, Press release, 9 March 2022
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Official Journal of the European Union, L110/55, 8 April 2022
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Council of the European Union, Press release, 8 April 2022
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Council of the European Union, Press release, 3 June 2022
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European Commission, Statement by Executive Vice President Dombrovskis, 15 March 2022
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European Commission, Statement by Executive Vice President Dombrovskis, 15 March 2022
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European Commission, EU sanctions against Russia: factsheet, 26 February 2022
