Fifth package of EU sanctions against Russia and Belarus in the Ukraine crisis

Upon publication in the Official Journal of the EU on 2 March 2022 (here, here and here), the following additional EU sanctions against Russia and individuals in Belarus entered into force.

Exclusion from SWIFT and other capital market sanctions

The EU has made good on its announcement last weekend that it would be including the SWIFT system in its sanctions. After a transition period of ten days that ends on 12 March 2022, providing specialised financial messaging services that are used for exchanging financial data will be prohibited for seven Russian banks (Bank Otkritie, Novikombank, Promsvyazbank, Bank Rossiya, Sovcombank, VNESHECONOMBANK (VEB) and VTB BANK) or companies of whose proprietary rights the listed banks own directly or indirectly more than 50 % (Article 5h of newly amended Regulation (EU) no. 833/2014). With this action, the EU has ordered payment services providers, particularly Belgium-based SWIFT, not to provide their services to the abovementioned banks, which had already been subject to certain capital market sanctions.

However, the EU has refrained up to now from also freezing the assets of the banks Bank Otkritie, Novikombank, Sovcombank and VTB BANK, which means that payment transactions with these banks remain possible, just not via SWIFT. This new sanction will severely restrict payment transactions with Russia but does not make them impossible.

It is now also prohibited to sell, supply, transfer or export euro banknotes to individuals or entities in Russia or for use in Russia (Article 5i of newly amended Regulation (EU) no. 833/2014) or to invest in any project co-financed by the Russian Direct Investment Fund (Art. 2e (3) of newly amended Regulation (EU) no. 833/2014).

Broadcast prohibition for Russian media

The EU has also put in place a broadcast prohibition for the Russian state-owned enterprises RT and Sputnik that prohibits them from broadcasting in the EU via their subsidiaries (Article 2f of newly amended Regulation (EU) no. 833/2014). This action is the EU’s response to Russian propaganda justifying military aggression against Ukraine.

Additional sanctions against individuals in Belarus

Also on Wednesday, due to Belarus’ participation in the invasion, sanctions against high-ranking members of the Belarusian military and members of the Belarusian Defence Ministry were resolved and announced in the Official Journal. This means that these individuals are also subject to travel and financial restrictions (expanded Annex I to newly amended Regulation (EU) no. 269/2014 and the expanded Annex to Council Decision 2014/145/CFSP).

 

---

For more information please visit our Ukraine-Russia Crisis Center