Commission Proposes Gas Demand Reduction Plan to Prepare EU for Supply Cuts: The EU faces the risk of further gas supply cuts from Russia, due to the Kremlin’s weaponization of gas exports. The EU Commission proposed a new legislative tool to reduce gas use in Europe by 15 percent until next spring. The new Regulation would set a target for all Member States to reduce gas demand by 15 percent between 1 August 2022 and 31 March 2023. The new Regulation would also give the Commission the possibility to declare, after consulting Member States, a ‘Union Alert’ on security of supply, imposing a mandatory gas demand reduction on all Member States. The proposal needs to be approved by Council before entering into force. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4608,https://energy.ec.europa.eu/communication-save-gas-safe-winter_en,https://energy.ec.europa.eu/proposal-regulation-coordinated-demand-reduction-measures-gas_en; https://energy.ec.europa.eu/annex-communication-save-gas-safe-winter_en).
Commission Amends the Temporary Crisis Framework: On Wednesday, the European Commission adopted an amendment to the State aid Temporary Crisis Framework, which enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia’s invasion of Ukraine. The updated framework Member States can set up schemes for investments in renewable energy and can support investments to phase out from fossil fuels. In addition the framework also expands on the existing types of support that Member States can give to companies in need and further clarified the conditions under which Member States may grant aid to cover the recent increase in gas and electricity costs for companies. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4622).
EU Takes Steps to Invest Almost €1.2 Billion to Support 61 Defense Industrial Cooperation Projects: On Wednesday, the Commission announced plans to grant a total EU funding of almost €1.2 billion supporting 61 collaborative defense research and development projects selected following the first ever calls for proposals under the European Defense Fund. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4595).
Commission Proposes to Temporarily Scrap Tariffs on Goods Used to Produce Fertilizer: The Commission proposed Wednesday to suspend tariffs on inputs used for the production of nitrogen fertilizers until the end of 2024. The objective of this proposal is to help alleviate costs for EU fertilizer producers and EU farmers. The proposal needs to be approved by the Council before entering into force. (https://policy.trade.ec.europa.eu/news/commission-proposes-temporarily-scrap-tariffs-goods-used-produce-fertiliser-2022-07-19_en).
RT Evades EU Sanctions by Launching New Sites: Though the EU has imposed sanctions on Russian state-funded media outlet RT, the company created new sites in German, Spanish, and French as “carbon copies” of previous RT sites in several EU countries. As of July 19, these sites are still accessible in the EU. (https://www.politico.eu/article/russia-europe-sanctions-social-media-rt/).
Cyberattacks Have Increased Since Russian Invasion of Ukraine, Per High Commissioner:According to a Wednesday declaration from the EU high representative, Russia has significantly increased its number of cyberattacks, both in the EU and elsewhere. The declaration reads, “This increase in malicious cyber activities, in the context of the war against Ukraine, creates unacceptable risks of spillover effects, misinterpretation and possible escalation.” (https://www.ukrinform.net/rubric-society/3533107-russia-steps-up-cyberattacks-on-eu-world-since-invading-ukraine.html).
Irish Prime Minister Calls for Tougher Sanctions: On Wednesday, Irish President Gitanas Nauseda met with European Commissioner for Financial Stability Mariead McGuiness. During the meeting, the President said, “Sanctions must be painful, effective and unavoidable,” though he noted the need for international cooperation to ensure maximum efficacy of the sanctions.(https://www.delfi.lt/en/politics/nauseda-eu-sanctions-against-russia-must-be-harder-and-impossible-to-evade.d?id=90780557).
EU and Azerbaijan Sign Agreement on Gas Supply: EU President Ursula von der Leyen and Azerbaijani President Ilham Aliyev signed a Memorandum of Understanding doubling the supply of gas from Azerbaijan to the European Union. The Memorandum also lays the ground for cooperation on renewable energy and commitments to reduce methane emissions through the gas supply chain. (https://ec.europa.eu/commission/presscorner/detail/en/statement_22_4583).
Russia’s Gazprom Declares Force Majeure for Gas Supplies to Europe: Gazprom has told customers in Europe it cannot guarantee gas supplies because of ‘extraordinary’circumstances, according to a letter, upping the ante in an economic tit-for-tat with the West over Moscow’s invasion of Ukraine. (https://www.reuters.com/business/energy/russias-gazprom-declares-force-majeure-gas-supplies-europe-2022-07-18/).
EU Insists Russia Sanctions Work, but Bloc Needs “Postwar Strategy”: As the EU prepares to impose another round of punitive measures on Russia over Ukraine, the bloc’s foreign ministers insisted on Monday that the previous six rounds of sanctions have been effective. (https://www.euractiv.com/section/global-europe/news/eu-insists-russia-sanctions-work-but-bloc-needs-postwar-strategy/).
EU Foreign Ministers Consider Ban on Russian Gold Imports. EU foreign ministers are considering a ban on Russian gold imports. However, the EU’s High Representative for Foreign Policy said the package would largely “improving the implementation of the already existing sanctions.” (https://www.theguardian.com/world/2022/jul/18/eu-foreign-ministers-weigh-up-ban-on-russian-gold-imports).
EU Shipowners Scramble to Move Russian Oil Before Bans Enter Into Force: Though EU sanctions that ban EU vessels from carrying Russian oil come into effect on December 5, EU tankers are still moving oil; Greek tankers moved about half of Russian crude volumes in May and June, according to Lloyds List Intelligence. EU tanker owners have been approached by Chinese purchasers to sell their boats before the ban enters into force, as China and India increase their consumption of Russian oil. Some EU tanker owners note that they may be forced to suspend part of their fleet after the ban begins. (https://www.wsj.com/articles/eu-shipowners-race-to-move-russian-oil-before-sanctions-kick-in-11658055600).
Poland to Boost Coal Imports Subsidies Amid Russia Sanctions: Poland will develop new types of coal subsidies for consumers and boost imports to make sure it has enough fuel for the heating season amid shortages and surging prices. (https://www.reuters.com/business/energy/poland-boost-coal-imports-subsidies-amid-russia-sanctions-2022-07-18/).
Germany’s Scholz Says Switch Back to Coal and Oil “Temporary”: German Chancellor Olaf Scholz announced on Sunday that Germany has decided to reactivate sixteen oil and coal-fired power plants. The government, however, warns that this is only a temporary measure as a result of “cuts in natural gas supplies from Russia amid the war in Ukraine.” (https://www.dw.com/en/germanys-scholz-says-switch-back-to-coal-and-oil-temporary/a-62498429).
Greece’s Fur Industry on the Brink as EU Sanctions on Russia Bite: Hundreds of fur businesses were banned from exporting to Russia, the main market for Greece’s fur industry. With no domestic market workers are sent home and his stockrooms fill-up with hundreds of unsold garments. (https://www.reuters.com/markets/europe/greeces-fur-industry-brink-eu-sanctions-russia-bite-2022-07-18/).
Swedish Retailer H&M Leaving Russia: On Monday, Swedish apparel retailer H&M announced that it would be winding down its business in Russia. The move will cost the company $200 million and impact 6,000 staff, as Russia was the company’s sixth-largest market. H&M previously announced that it would be suspending Russian operations in March. (https://www.reuters.com/business/retail-consumer/hm-says-wind-down-russia-2022-07-18/).
EU Clarifies that it has No Sanctions on Russian Fertilizer, Food: EU Foreign Policy Chief Josep Borrell said on Monday that the EU sanctions do not and will not contain any direct restrictions on Russian exports of fertilizers, foods, and any payment for any of these items. The statement came after a meeting of EU foreign ministers in Brussels. (https://tass.com/world/1481549).
EU Updates Guidance on Donetsk and Luhansk Oblasts: On July 13, 2022, the European Commission updated the FAQ on the Donetsk and Luhansk Oblasts. The Commission added one question on the transit of goods between mainland Russia and Kaliningrad. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-oblasts_en.pdf)
Preview of EU’s Seventh Sanctions Package on Russia to be Agreed by Next Week: The EU is preparing to unveil and approve a new round of sanctions on Russia within a week, which is expected to ban Russian gold imports and close existing loopholes. Preparations by EU ambassadors for the new, seventh package are to resume this Thursday and Friday (14 and 15 July), and are likely to be approved by member states by mid-next week according to several EU diplomats. (https://www.euractiv.com/section/europe-s-east/news/a-preview-of-eus-seventh-sanctions-package-on-russia-to-be-agreed-by-next-week/).
Lithuania to Keep Kaliningrad Trade Restrictions While Working out New Rules: Lithuania will keep restrictions on trade flows to the Russian enclave of Kaliningrad while it works out new rules, Prime Minister Ingrida Simonyte said on Thursday (https://www.reuters.com/markets/europe/lithuania-keep-kaliningrad-trade-restrictions-while-working-out-new-rules-2022-07-14/).
EU Weighs Lifting Sanctions on Some Russians Over Legal Concerns: The European Union is in discussions about removing sanctions it imposed on some Russian individuals over their involvement in Moscow’s war in Ukraine after the bloc’s lawyers found that the penalties may have been imposed on weak grounds, according to people familiar with the matter. About 40 individuals have asked to be taken off sanctions list. (https://www.bloomberg.com/news/articles/2022-07-14/eu-mulls-lifting-sanctions-on-some-russians-over-legal-concerns#xj4y7vzkg).
Recession Would Make Tough Oil Sanctions on Russia More Likely: Commentary fromReuters argues that, in the major economies, the only sure-fire way to reduce Russia’s petroleum revenues is to have a major global recession that reduces oil revenues. The commentary indicates this is an uncomfortable truth that Western policymakers have tried to obfuscate from voters at home. (https://www.reuters.com/markets/commodities/recession-would-make-tough-oil-sanctions-russia-more-likely-kemp-2022-07-14/).
EU Announces Freezing EUR 13.8 Billion of Russian Assets: Top EU justice official Didier Reynders stated Tuesday that the EU has frozen 13.8 billion euros (US $13.83 billion) worth of assets held by Russian individuals and entities sanctioned for Moscow’s war against Ukraine. (https://www.reuters.com/world/europe/eu-has-frozen-138-bln-euros-russian-assets-over-ukraine-war-official-says-2022-07-12/).
EU Council Adopts EUR 1 Billion Assistance to Ukraine: The Council today decided to provide EUR 1 billion of additional macro-financial assistance to Ukraine, as a matter of urgency. The total macro-financial support from the EU to Ukraine since the start of the war now reaches EUR 2.2 billion and it is expected to increase further in the coming months. (https://www.consilium.europa.eu/en/press/press-releases/2022/07/12/council-adopts-additional-1-billion-assistance-to-ukraine/).
EU Delegation to Nepal Issues Fact-Sheet on Sanctions and Trade in Agrifood Products: The EU delegation to Nepal issued a fact sheet restating that EU sanctions to not restrict EU and third countries’ trade in agrifood products. The delegation provides a helpful reminder of sanctions in place vis-à-vis exports of agrifood from Ukraine, Russia and Belarus. (https://www.eeas.europa.eu/delegations/nepal/fact-sheet-eu-sanctions-do-not-restrict-eu-and-third-countries%E2%80%99-trade-agrifood_en).
Bloomberg Reports Possible New EU Sanctions on Russia in Coming Weeks:Bloomberg reported on Tuesday that it expects a new package of sanctions on Russia from the EU in coming weeks. The agency previously reported that the new package may include restrictions on gold imports, measures to bolster the effectiveness of previous sanctions, and an updated list of sanctioned parties. It expects that an oil price cap will not be included in this new package. (https://news.yahoo.com/eu-propose-sanctions-package-against-105300373.html).
Renault Car Sales Plummet After Closure of Russian Operations: The sales of French car company Renault have fallen 30 percent in the first half of 2022, due to the closure of its Russian operations, according to company disclosures released Tuesday. Prior to 2022, Russia was the company’s second-largest market, and accounted for 15 percent of its earnings; Renault sold its Russian subsidiary earlier in the year. (https://www.reuters.com/business/autos-transportation/renault-first-half-sales-volume-slumps-30-after-russia-exit-2022-07-12/).
European Space Agency Terminates Cooperation with Russia on Mars Mission:The European Space Agency announced on Tuesday that it would be suspending cooperation with its Russian counterpart on the ExoMars mission to Mars. The ExoMars launch, which was planned as Europe’s first Mars mission, was delayed from March to September of this year due to the invasion of Ukraine, but the Agency formally suspended all cooperation in the Tuesday announcement. The Agency will have more details on the future of the Mission on July 20. (https://www.cnn.com/2022/07/12/world/exomars-terminated-russia-european-space-agency-scn/index.html).
Finnish Ambassador Expresses Lack of Faith in Efficacy of Sanctions: Finland’s Ambassador to the U.S. Mikko Hautala expressed a pessimistic view on the impact of economic sanctions on Russia during a Tuesday speech. He explained that, in his view, Russia will be able to mass produce sanctioned items and rearm themselves regardless of the sanctions for up to one year. He stated “focusing on the sanctions will not immediately relieve Ukraine, basically in any way.”(https://www.politico.com/newsletters/national-security-daily/2022/07/11/finnish-ambassador-russia-can-keep-fighting-for-a-very-long-time-00045088).
Russia shuts down Nord Stream Gas Pipeline: Russia has reduced Nord Stream gas exports to Europe for a long-planned, routine 10-day repair. The Nord Stream pipeline transports gas from Russia to Germany. German officials, including the Energy Minister, fear Russia might not restart the flow of gas in an attempt to destabilize Europe. Alternative supply sources are contemplated by Europeans including Norway, Azerbaijan and the U.S. but change will take time to implement. According to Germany’s energy regulator, “current stocks will only last for one or two months”. (https://www.dw.com/en/russia-shuts-down-nord-stream-gas-pipeline-for-repairs/a-62427679).
Commission Answers Parliamentary Question on Import Ban on Fishery Products: On July 8, 2022, EU High Representative Josep Borrell replied to a parliamentary question requesting an import ban on all fishery products from Russia. The High Representative underlined that EU sanctions are designed not to target food and agricultural products and stated that, against this backdrop of ensuring food security, with regard to seafood, the EU has imposed very limited restrictions.(https://www.europarl.europa.eu/doceo/document/E-9-2022-001875_EN.html).
EU Commissioner for Justice States that Commission Does Not Collect Data on Golden Passports: Commissioner for Justice Didier Reynders replied to a parliamentary question inquiring on the number of golden passports received by Russian and Belarussian nationals on July 8. The term golden passport relates to the systematic granting of EU citizenship in return for payments or investments by certain EU Member States. According to the answer, the Commission does not collect statistics on the number of naturalizations granted to Russian and Belarusian nationals based on such schemes. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001276_EN.html).
Russia Shuts Kazakhstan-EU Oil Pipeline: On July 5, 2022, a district court in Novorossiysk, Russia’s biggest Black Sea port, ordered the shutting off of a pipeline exporting oil from Kazakhstan to the EU for a month. This decision follows a phone conversation between Kazakh President Kassym-Jomart Tokayev and European Council President Charles Michel during which Kazakhstan announced its support in helping the EU overcome its current energy crisis. (https://www.dw.com/en/russia-targets-eu-cutting-off-kazakhstans-oil-exports/a-62408644).
European Commission Consults Member States on the Amendment of State aid Temporary Crisis Framework: In light of the prolonged invasion by Russia of Ukraine and of its direct and indirect effects on the economy and on the energy situation, the Commission is assessing the need to adjust the State Aid Temporary Crisis Framework. The Temporary Crisis Framework enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia’s invasion of Ukraine. Possible amendments include the adjustment of maximum aid ceilings, additional measures facilitating the investments in renewable energy and measures to further accelerate the diversification of energy supplies. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4469).
Lithuania Expands Restrictions on Trade to Kaliningrad: On July 11, 2022, Lithuania prohibited the transit to Kaliningrad through its territory to additional goods including concrete, wood, alcohol and alcohol-based industrial chemicals. This prohibition follows similar measures previously imposed by Lithuania on the transport of iron, steel and metals despite threats of retaliation from Moscow. On Monday, the Kaliningrad regional governor proposed a total ban on overland movement of goods between Russia and the three EU Baltic member states of Lithuania, Latvia and Estonia, a move which could divert Russian freight from their ports to those in Kaliningrad. (https://www.euractiv.com/section/global-europe/news/lithuania-widens-curbs-on-kaliningrad-trade-despite-russian-warning/).
Spain Urges Companies to Reduce LNG Imports from Russia: Spain’s Energy Minister Teresa Ribera urged Spanish companies on Monday to reduce imports of liquefied natural gas from Russia and search for alternatives and said the country was readying a contingency plan for the winter in order to help EU neighbors.(https://www.reuters.com/business/energy/spain-energy-minister-urges-utilities-reduce-lng-imports-russia-2022-07-11/).
Abramovich Contests Russian Sanctions Before EU Court: On July 11 2022, a summary of the application brought by Roman Abramovich against EU sanctions was published in the Official Journal of the European Union. The application alleges an infringement of the right to effective judicial protection and the administration’s obligation to state reasons, a manifest error of assessment, infringement of the principle of proportionality and the principle of equal treatment, and an infringement of fundamental rights and unjustified interference in the applicant’s fundamental rights guaranteed by the Charter of Fundamental Rights of the European Union. Mr. Abramovich requested the annulment of the sanctions as applied to him and the provisional payment by the Council of one million euros to the charitable foundation for victims of conflicts which is being established in connection with the sale of Chelsea FC, due to the non-material damage Mr. Abramovich claims to have suffered (https://www.reuters.com/business/energy/spain-energy-minister-urges-utilities-reduce-lng-imports-russia-2022-07-11/).
EU Working to Step Up Sanctions Enforcement: On Saturday, The Wall Street Journal released a summary of recent EU proposals to improve sanctions enforcement. The proposals include a centralized sanctions enforcement body, like the Treasury Department’s Office of Foreign Asset Control; an expansion of sanctions targets to include family members, making it more difficult for targets to transfer assets to a non-sanctioned relative; and a reduction in the cutoff of the amount of any company that a sanctioned oligarch can hold from 50 percent to 25 percent. (https://www.wsj.com/articles/eu-works-to-tighten-russia-sanctions-enforcement-11657371600).
France Readies for Russian Gas Cutoff: Speaking on Sunday, French Finance Minister Bruno Le Maire stated that French government was readying for a total cutoff of Russian gas supplies, calling such a shutoff “the most likely scenario.” He said that France was looking into public awareness campaigns to urge businesses and homes to voluntarily reduce gas consumption, build infrastructure to increase natural gas imports from other sources, and, as a last resort, requiring companies to lower production to save on energy consumption. France imports 17 percent of its natural gas from Russia, less than many of its neighboring countries. (https://www.reuters.com/world/europe/russian-gas-cutoff-most-likely-scenario-french-finance-minister-2022-07-10/).
Finns Ready for More Sanctions, According to Polls: Most Finns support stricter sanctions against Russia, according to recent polls published on July 9. Fifty-four per cent of Finns would be ready for stricter sanctions, while only about 30 percent are pleased with current sanctions. Only 5 percent want sanctions to be lifted altogether, the survey adds. (https://www.euractiv.com/section/politics/short_news/finns-would-like-to-see-more-russian-sanctions/).
EU Sanctions Create a Brain-Drain from Northern Europe: According to business advisor Chris Devonshire-Ellis, the combined forces of EU sanctions, the prospect of a harsh winter, and no guarantee of adequate energy supplies are pushing northern Europeans to consider relocation to southern Europe. Devonshire-Ellis notes that industry groups are pointing to sanctions as the reason for slowing industrial production in Europe. (https://www.asiabriefing.com/news/2022/07/eu-sanctions-policy-is-leading-to-dark-days-for-northern-europe/).
Dutch Prime Minister Commits to Further Support for Ukraine: During a visit to Kyiv on Monday, Dutch Prime Minister Mark Rutte met with Ukrainian President Volodymyr Zelenskyy and said that the Netherlands is prepared to support Ukraine “now and in the years to come.” He added that the Netherlands is ready to help find a solution to export grain out of Ukraine. (https://www.cnn.com/world/live-news/russia-ukraine-war-news-07-11-22/h_360234611a4dfe5a3177edc8c3a92e95).
EU Updates Guidance on Deposits: On July 8, 2022, the European Commission updated the FAQ on Deposits adding a question on repayment of loans from a credit institution. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-deposits_en.pdf).
EU Updates Guidance on Trust Services: On July 8, 2022, the European Commission updated the FAQ on Trust Services adding a question on UCITS and Alternative Investment Fund structures and another on “foundations”. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-trusts-services_en.pdf).
Polish Official Accuses Germany to Try to Exempt Kaliningrad From EU Sanctions: Marcin Przydacz, Deputy Foreign Minister of Poland stated that “Germany is calling on Europe to break the European law which is a result of a deal agreed upon by the EU 27 to impose sanctions on Russia.” This follows rumors that European officials are in talks about exempting Kaliningrad from sanctions. (https://www.thefirstnews.com/article/germany-tries-to-exempt-kaliningrad-from-eu-sanctions—polish-dep-fm-31599).
Russia Shuts Kazakhstan-EU Oil Pipeline: On July 5, 2022, a district court in Novorossiysk, Russia’s biggest Black Sea port, ordered the shutting off of a pipeline exporting oil from Kazakhstan to the EU for a month. This decision follows a phone conversation between Kazakh President Kassym-Jomart Tokayev and European Council President Charles Michel during which Kazakhstan announced its support in helping the EU overcome its current energy crisis. (https://www.dw.com/en/russia-targets-eu-cutting-off-kazakhstans-oil-exports/a-62408644).
Germany Urges Canada to Release Sanctioned Pipeline Turbine: German Economy Minister Robert Habeck released a statement on Thursday calling on Canada to release a turbine needed to repair the Nord Stream I pipeline, saying, “I’ll be the first one who will fight for a further strong EU sanction package, but strong sanctions means it must hurt and harm Russia and Putin more than it does our economy.” The part is currently being withheld due to Canadian sanctions on the item; without the part, Germany may need to ration energy consumption in the winter. (https://financialpost.com/commodities/energy/oil-gas/germanys-habeck-urges-canada-to-help-thwart-putins-gas-excuses).
Germany Urges Canada to Release Sanctioned Pipeline Turbine: German Economy Minister Robert Habeck released a statement on Thursday calling on Canada to release a turbine needed to repair the Nord Stream I pipeline, saying, “I’ll be the first one who will fight for a further strong EU sanction package, but strong sanctions means it must hurt and harm Russia and Putin more than it does our economy.” The part is currently being withheld due to Canadian sanctions on the item; without the part, Germany may need to ration energy consumption in the winter. (https://financialpost.com/commodities/energy/oil-gas/germanys-habeck-urges-canada-to-help-thwart-putins-gas-excuses).
Russia Threatens Lithuania with “Harsh Measures” over Kaliningrad Dispute: On Friday, Russian Foreign Ministry Spokeswoman Maria Zakharova warned in a statement that, “[i]f the situation does not stabilize in the coming days, then Russia will take harsh measures against Lithuania and the European Union.” She said that the situation has taken too long to resolve. (https://www.reuters.com/world/europe/russia-warns-lithuania-it-could-take-harsh-measures-over-kaliningrad-transit-2022-07-08/).
EU Parliament Consents to Making Sanction Violations an EU Crime: On July 7, 2022, the European Parliament gave its consent to adding the violation of Union restrictive measures to the list of EU crimes. This would allow the Commission to propose a directive defining the scope and the criminal penalties for the violation of sanctions across Member States in a consistent manner. The measure still need to be formally adopted by the Council of the European Union. (https://www.europarl.europa.eu/doceo/document/TA-9-2022-0295_EN.pdf).
Dutch Port Exemplifies Struggles of Sanctions Enforcement: On Friday, The New York Times published a profile of enforcement administrators at the Dutch port of Rotterdam. Officials interviewed for the piece discussed the difficulty in determining which transactions were restricted, and which ones were permitted, noting that the port was one of Europe’s major points of entry for cocaine. The port has surged staffing to meet the competing needs of Brexit and increased sanctions on Russia, but US officials interviewed for the article noted that, because EU sanctions enforcement happens at the member state level, not all countries will have the same level of commitment to enforcement. (https://www.nytimes.com/2022/07/08/world/europe/russia-eu-sanctions-rotterdam.html).
German Support for Sanctions Remains Steady: In a poll of about 1,300 eligible German voters in June, 60 of respondents said they supported measures against Russia even if energy supplies were a problem and local businesses were disadvantaged. 57 percent of respondents said they supported the measures even if energy and grocery prices continued to rise. (https://www.dw.com/en/german-voters-support-for-russia-sanctions-is-waning/a-62408344).
EU Parliament Calls on Serbia to Align With EU Sanctions: Members of the European Parliament approved an annual assessment report on Wednesday regretting that Serbia has not aligned with EU sanctions on Russia. The text was adopted with 523 votes in favor, 78 against and 34 abstentions. (https://www.euronews.com/my-europe/2022/07/06/eu-parliament-calls-for-serbia-to-change-its-stance-on-russia).
EU Working on More Sanctions Against Russia: EU Council President, Charles Michel, told the European Parliament on Thursday that Brussels is looking at more sanctions against Russia. The bloc is considering sanctions on gold and a price cap on Russian oil, in line with recent commitments made at the G7 summit. In addition, the EU will continue to provide both financial and military support for Ukraine. (https://www.financialmirror.com/2022/07/07/eu-working-on-more-sanctions-against-russia/).
France to Nationalize Power Company EDF to Combat Europe’s Energy Crisis: On Wednesday, French Prime Minister Élisabeth Borne said that the French government will purchase 100% of power company EDF’s shares, compared to the 84% it owns currently. The French government said this step is needed to manage the transition away from fossil fuels at a time of energy crisis and the war in Ukraine. EDF has struggled after the French government capped retail electricity prices, and French labor unions have previously lobbied for nationalizing EDF to enact climate change policies. (https://www.wsj.com/articles/france-to-nationalize-energy-giant-edf-to-help-it-combat-europes-energy-crisis-11657119239?mod=djemalertNEWS).
Hungarian Prime Minister Orban’s Party Explores Possibilities to Rejoin Center-Right EPP: After two years of suspensions, Hungarian Prime Minister Viktor Orban is reportedly pursuing an alliance between his Fidesz party and the center-right European People’s Party (“EPP”). Fidesz was previously in the EPP but left after receiving criticism about human rights in Hungary from the EPP. This move might be complicated by Orban and Fidesz’s recent positions regarding EU sanctions, notably the firm opposition to EU sanctions against Russian Orthodox Church Patriarch Kirill. (https://euobserver.com/eu-political/155418).
Germany Urges Canada to Release Sanctioned Pipeline Turbine: German Economy Minister Robert Habeck released a statement on Thursday calling on Canada to release a turbine needed to repair the Nord Stream I pipeline, saying, “I’ll be the first one who will fight for a further strong EU sanction package, but strong sanctions means it must hurt and harm Russia and Putin more than it does our economy.” The part is currently being withheld due to Canadian sanctions on the item; without the part, Germany may need to ration energy consumption in the winter. (https://financialpost.com/commodities/energy/oil-gas/germanys-habeck-urges-canada-to-help-thwart-putins-gas-excuses).
EU Guarantee Supports EBRD Loans to Ukraine: The European Commission and the European Bank for Reconstruction and Development formalized a commitment for the European Commission to provide guarantees to support €70 million of recent EBRD loans to Ukrainian companies that provide vital services to the country’s real economy. (https://www.ebrd.com/news/2022/eu-guarantee-supports-ebrd-in-loans-to-key-ukraine-companies-.html).
Commission Presents Guidance on Safe Home Initiation: During a session of the Ukraine Solidarity Platform meeting Commissioner for Home Affairs, Ylva Johansson presented the Guidance supporting the ‘Safe Homes’ initiative. The Guidance for Safe Homes presents key principles and practices to help hosting families, facilitate proper matching with those in need, and to ensure that private housing solutions are suitable and safe. (https://home-affairs.ec.europa.eu/safe-homes-guidance_en).
Council Authorizes the Signing of the Carriage of Freight by Road Agreement with Ukraine: The Council of the EU authorized the signature of an agreement between the European Union and Ukraine on the carriage of freight by road. The agreement aims at making it easier to transport goods between the EU and Ukraine by road. The Council also authorized the provisional application of the agreement pending ratification. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2022.179.01.0004.01.ENG&toc=OJ%3AL%3A2022%3A179%3ATOC).
High Representative Replies to Parliamentary Question on Sanctions Against Persons Listed by the Anti‑Corruption Foundation: EU High-Representative Josep Borrell replied to a parliamentary question on the scope of EU sanctions underlining that the Anti‑Corruption Foundation has put together a list of around 6 000 people and entities who are directly linked to President Putin, and yet fall outside the scope of EU sanctions. The High-Representative notably mentioned that the EU “ensures that all designations meet the legal standards as defined in the jurisprudence of the CJEU”. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001862_EN.html).
Bulgaria Block Transfer to the Russian Embassy: Bulgaria’s Finance Minister said on Wednesday that Bulgaria has blocked a bank transfer worth some $890,000 to the Russian embassy because of EU sanctions.(https://www.reuters.com/world/europe/bulgaria-blocks-bank-transfer-russian-embassy-citing-eu-sanctions-2022-07-06/).
Cryptocurrency Platform BitMEX Stops Offering Services to Russian in the EU: Cryptocurrency platform BitMex announced that it will no longer be offering its services to Russian citizens or residents located in the EU. Russians situated in Russia will likely not be impacted by the changes. The restriction is being applied by the company in order to stay compliant with EU sanctions against Russia. (https://cryptobriefing.com/bitmex-to-restrict-services-to-russians-in-eu/).
Commission President Warns of Danger of Complete Cut-off of Russian Gas: Commission President Ursula von der Leyen said before the European Parliament on Wednesday that the EU needs to prepare now for further disruption of gas supply and “even a complete cut-off of Russian gas supply”. The EU already agreed last month that all natural gas storage in the 27-nation bloc should be topped up to at least 80% capacity for next winter to avoid shortages during the cold season. (https://time.com/6193972/eu-russia-gas-supply-cut-off/).
Amid Energy Crisis, E.U. Says Gas, Nuclear Can Sometimes be ‘Green’: The E.U. has agreed to phase out imports of coal and oil from Russia to hit the Kremlin’s war chest. Putin, who is aware that the bloc remains dependent on its gas, uses it as leverage to threaten and punish the E.U. Those in opposition to the inclusion of gas in the green taxonomy have expressed concern that it will incentivize investment in fossil fuels and delay the E.U.’s transition to renewable energy, but defenders of the plan argue that the war has heightened the need for rapid investment in the infrastructure required to import gas from places other than Russia.(https://www.washingtonpost.com/world/2022/07/06/eu-parliament-nuclear-gas-green/?itid=hp_world).
Transparency International Calls on EU to Drop Russian Diamond Trade: Transparency International addressed an open letter to senior Belgian and European officials calling to drop the diamond trade with Russia. According to the letter, Russia exports $4 billion of rough diamonds annually, with Belgium being the largest importer. The Belgian Prime Minister has kept the door open to action at the European level, but has resisted moves to stem the trade at home. (https://www.brusselstimes.com/250512/transparency-international-calls-on-eu-to-drop-russian-diamond-trade).
Russia to Deliver Goods to Norway Despite Sanctions: Despite Norway joining the European Union’s sanctions against Russia, in response to the Ukraine crisis, Russians still might be able to send their goods through Storskog, the only checkpoint on their border with Norway. (https://www.teletrader.com/russia-to-deliver-goods-to-norway-despite-sanctions/news/details/58183270).
Czech Government Issues Clarification on Russian Student Enrollment: In an official memo to all Czech universities, Deputy Education Minister Radka Wildova said EU sanctions forbid providing technical assistance to Russians, and that supporting higher education or applied research for Russian citizens could count as rendering technical assistance. Some Czech universities were forced to expel Russian students or force Russian students to change majors in response to the directive, but others are questioning the necessity of the measure. (https://www.dw.com/en/czech-republic-russian-university-students-face-restrictions/a-62388131).
European Commission Replies to Parliamentary Question on Agricultural Products: The Commission provided a reply to a parliamentary question on if it intends to use the Commission’s power to prevent or limit disturbance to the agricultural market following Russia’s invasion of Ukraine. The Commission did not rule out the possibility of adopting exceptional measures. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001884-ASW_EN.html).
European Commission Requests Feasibility Study on Asset Confiscation: The European Commission gave its approval to a pilot project to explore legal ways to reuse frozen Russian assets that could be confiscated due to violation of EU sanctions. (https://www.euractiv.com/section/global-europe/news/eu-eyes-to-test-waters-on-russian-asset-confiscation/).
Luxembourg Minister Says Seizing of Russian Assets Could be Part of Next Sanctions: Franz Fayot, the economy minister of Luxembourg, reported that some participants to the Ukraine recovery conference in Lugano, Switzerland, mainly Eastern European countries, suggested using seized Russian assets to finance the reconstruction of Ukraine. “We don’t have a legal framework for something like that right now” Fayot said, but seizing Russian assets could well be among the next EU sanctions against Russia.(https://delano.lu/article/seizing-russian-assets-could-b).
UniCredit Considering Sale of Russian Business, with Buyback Option: Bloomberg reported on Tuesday that UniCredit, Italy’s second largest bank, is looking at options to sell its Russian business, including one that would give it the option to buy back its Russian business should the geopolitical situation improve. UniCredit already took a 1.85 billion euro loss on its Russian business, and is attempting to reduce further losses. (https://www.bloomberg.com/news/articles/2022-07-05/unicredit-mulls-a-russia-exit-that-it-can-reverse-after-the-war).
Italian Court Turns Down Request to Lift Freeze on Russian Businessman’s Yacht: On Tuesday, the administrative court in Lazio turned down a request to lift an asset freeze on the Lady M yacht. Asmare Enterprises, the listed owner of the yacht, unsuccessfully argued that sanctioned oligarch Alexey Mordashov was not the owner of the 65 million euro ($68 million) yacht, which was seized by the Italian police in the northern port of Imperia in March.(https://www.insurancejournal.com/news/international/2022/07/05/674576.htm)
EU Considering a New Bloc-Wide Sanctions Authority: Speaking to The Financial Times on Sunday, Mairead McGuinness, EU Financial Services Commissioner, announced on Sunday that the EU is considering a new sanctions authority, similar to the Treasury Department’s Office of Foreign Asset Control, or giving its planned Anti-Money Laundering Authority the ability to oversee sanctions and amend legislation. These proposals would replace the current process, where sanctions are drafted through discussions between the European Parliament and Member-States. She added that the EU is considering forcing sanctioned entities to disclose their assets. (https://www.ft.com/content/fe83c67b-5dcc-447e-aba3-34911aa5f39d).
Swedish PM: No Agreement on Seventh Sanctions Package: During a visit to Kyiv on Monday, Swedish Prime Minister Magdalena Andersson said that the EU has not yet reached an agreement on the content of a seventh sanctions package against Russia. She added that Sweden is ready to adopt a new package, including an embargo on Russian natural gas purchases. (https://www.ukrinform.net/rubric-polytics/3521894-eu-has-not-yet-agreed-on-seventh-package-of-sanctions-against-russia-swedish-pm.html).
EU Nears Compromise Deal to Defuse Standoff with Russia: According to two sources familiar with the matter, trade through Lithuania to the Russian exclave of Kaliningrad could return to normal within two days. European officials are edging towards a compromise deal with the Baltic state to defuse a row with Moscow. European officials are in talks about exempting the territory from sanctions, paving the way for a deal in early July if EU member Lithuania drops its reservations. (https://www.reuters.com/world/europe/exclusive-kaliningrad-row-eu-nears-compromise-deal-defuse-standoff-with-russia-2022-06-29/).
Commission Publishes Guidance Note on Provision of Humanitarian Aid : On June 30, 2022, the EU Commission published a guidance note on the provision of humanitarian aid in compliance with EU sanctions. This builds on previous guidance on the provision of humanitarian aid to fight the Covid-19 pandemic in certain environments subject to EU sanctions that focused on EU counterterrorism sanctions and Iran, Nicaragua, Syria and Venezuela sanctions regimes. (https://ec.europa.eu/info/publications/220630-humanitarian-aid-guidance-note_en).
EU Parliament Publication on Implication for the ECB of the War in Ukraine: The Directorate-General for Internal Policies published a compilation of papers on the implication of the war in Ukraine for the European Central Bank following a request from the ECON committee of the European Parliament. (https://www.europarl.europa.eu/RegData/etudes/STUD/2022/703366/IPOL_STU(2022)703366_EN.pdf).
EU Provides Guidance on Sanctions and the REACH Regulation: On July 1, 2022, the European Commission published an FAQ on REACH containing 15 questions relating to EU Sanctions and Regulation (EC) No 1907/2006. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-reach_en.pdf).
EU, Ukraine, and Moldova Sign Road Freight Transport Agreement: Moldova and Ukraine both signed transport agreements with the EU to help secure supply chains, including food security following Russia’s aggression against Ukraine. In addition, the EU and Ukraine signed an understanding on updating Ukraine’s indicative TEN-T network to improve infrastructure connections between the EU and Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_4245).
EU Updates Guidance on General Questions: On June 30, 2022, the European Commission updated the FAQ on General Questions. The Commission added one question on the application of sanctions to EU branches of Russian companies. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-general_en.pdf).
EU Nears Compromise Deal to Defuse Standoff with Russia: According to two sources familiar with the matter, trade through Lithuania to the Russian exclave of Kaliningrad could return to normal within two days. European officials are edging towards a compromise deal with the Baltic state to defuse a row with Moscow. European officials are in talks about exempting the territory from sanctions, paving the way for a deal in early July if EU member Lithuania drops its reservations. (https://www.reuters.com/world/europe/exclusive-kaliningrad-row-eu-nears-compromise-deal-defuse-standoff-with-russia-2022-06-29/).
German Chancellor Says NATO Will Support Ukraine for as Long as Necessary: German Chancellor Olaf Scholz said that NATO allies will continue to help Ukraine defend itself against Russia for “as long and as intensively as it is necessary.” German Defense Minister Christine Lambrecht said Berlin would provide division of 15,000 troops, with 65 planes and 20 ships, to NATO’s high-readiness forces. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-06-29-22/h_099c28e86d5e3396be04bad228fd5d4c).
NATO Formally Invites Finland and Sweden to Alliance: NATO formalized its invitation to Finland and Sweden to the alliance, according to a statement from NATO Heads of State and Government on Wednesday. The statement added, “The accession of Finland and Sweden will make them safer, NATO stronger, and the Euro-Atlantic area more secure.” (https://www.cnn.com/2022/06/29/politics/joe-biden-nato-day-2/index.html).
Council Takes the First Step to Make Violation of EU Sanctions an EU Crime: On 28 June 2022, the Council reached an agreement at technical level on the Commission’s proposal to make violation of EU sanctions an EU crime. This would allow the Commission to propose a directive defining the scope and the criminal penalties for the violation of sanctions across Member States in a consistent manner. The Council’s Permanent Representative Committee still has to officially endorse the agreement and to request the consent of the European Parliament before the final adoption of the text. (https://data.consilium.europa.eu/doc/document/ST-10556-2022-INIT/en/pdf).
EU Nears Compromise Deal to Defuse Standoff with Russia: According to two sources familiar with the matter, trade through Lithuania to the Russian exclave of Kaliningrad could return to normal within two days. European officials are edging towards a compromise deal with the Baltic state to defuse a row with Moscow. European officials are in talks about exempting the territory from sanctions, paving the way for a deal in early July if EU member Lithuania drops its reservations. (https://www.reuters.com/world/europe/exclusive-kaliningrad-row-eu-nears-compromise-deal-defuse-standoff-with-russia-2022-06-29/).
German Chancellor Says NATO Will Support Ukraine for as Long as Necessary: German Chancellor Olaf Scholz said that NATO allies will continue to help Ukraine defend itself against Russia for “as long and as intensively as it is necessary.” German Defense Minister Christine Lambrecht said Berlin would provide division of 15,000 troops, with 65 planes and 20 ships, to NATO’s high-readiness forces. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-06-29-22/h_099c28e86d5e3396be04bad228fd5d4c).
NATO Formally Invites Finland and Sweden to Alliance: NATO formalized its invitation to Finland and Sweden to the alliance, according to a statement from NATO Heads of State and Government on Wednesday. The statement added, “The accession of Finland and Sweden will make them safer, NATO stronger, and the Euro-Atlantic area more secure.” (https://www.cnn.com/2022/06/29/politics/joe-biden-nato-day-2/index.html).
Bulgaria Expels 70 Russian Diplomats: Bulgaria expelled 70 Russian diplomats over espionage concerns, more than half of Russia’s diplomatic presence in the country. The Foreign Ministry said the decision was designed to bring down the size of Moscow’s mission to that of the Bulgarian representation in Moscow. (https://www.reuters.com/world/europe/bulgaria-expels-70-russian-diplomatic-staff-over-espionage-concerns-2022-06-28/).
Decathlon Temporarily Closes Stores in Russia: Sport equipment company Decathlon announced it would be closing its Russian stores and online shop temporarily due to supply problems. Decathlon imports almost all its product from abroad. Unlike many western companies, Decathlon decided not to pull out of Russia following the invasion of Ukraine. (https://www.retaildetail.eu/news/leisure/empty-shelves-force-decathlon-to-close-in-russia/).
European Steelmakers Continue to Purchase Russian Steelmaking Components: On Tuesday, The Wall Street Journal reported that Russian exports of ferrotitanium, a metallic alloy used to strengthen steel, to Europe increased by 30 percent in March from the previous month, despite industry statements that they would avoid Russian-sourced raw materials. Buyers are attracted by the steep discounts, and as long as the alloy is not sanctioned, they likely will keep buying. (https://www.wsj.com/articles/steelmakers-avoid-russian-components-but-bargain-hunters-swoop-in-11656402338?mod=hp_lista_pos5).
Lithuania’s President Vows To Stick To Kaliningrad Restrictions: Lithuanian President Gitanas Nauseda has stressed that his Baltic country “must” and “will” enforce EU sanctions on Russian goods amid harsh rhetoric from Moscow over Vilnius’s recent restrictions affecting the Russian exclave of Kaliningrad. He called for an “urgent” start to consultations with the European Commission to protect Lithuania’s interests and international obligations in the shadow of sanctions against Ukraine’s “aggressor.” (https://www.rferl.org/a/lithuania-kaliningrad-eu-sanctions-enforce-russia/31915719.html).
Russian Hackers Temporarily Disable Lithuanian Government Websites: On Monday, the websites for the Lithuanian State Tax Inspectorate and the Migration Department were temporarily disabled as a result of a distributed denial of service (“DDOS”) attack. A pro-Moscow hacking group, Killnet, has claimed responsibility for the actions. Russia repeatedly warned Lithuania that the country would “retaliate” in response to Lithuania’s decision to disrupt transportation to the Russian enclave of Kaliningrad. (https://www.nbcnews.com/tech/security/cyberattack-hits-lithuania-sanctions-feud-russia-rcna35488).
Lithuanian PM: Russia Knew About Transit Sanctions and Was Preparing for Them: Russia has known about the sanctions imposed on the transit of goods to the Kaliningrad region since March and has been preparing for them, Lithuanian Prime Minister Ingrida Simonyte says, adding that Moscow’s propaganda attacks are part of an information war. (https://www.baltictimes.com/lithuanian_pm__russia_knew_about_transit_sanctions_and_was_preparing_for_them/).
EU Commission Answers Parliamentary Question of Circumvention: Commissioner McGuinness answered a parliamentary question seeking clarification on how the European Union plans to prevent Russia circumventing sanctions through illegal transactions using dummy companies. The Commission notably recalls that it will conduct a review of practices that circumvent and undermine sanctions which will inform possible legislative proposals or implementation guidelines. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001491-ASW_EN.pdf).
Mandatory Gas Storage Legislation Passes Final Step: The Council has definitively adopted a regulation that provides that underground gas storage on member states’ territory must be filled to at least 80% of their capacity before the winter of 2022/2023 and to 90% before the following winter periods. The text will enter into force the day after its publication in the Official Journal. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/27/council-adopts-regulation-gas-storage/).
France Pushes for Cap on Oil Prices Worldwide: While G7 leaders have been debating a price-cap plan targeting Russian oil exports, the services of the French president confirmed that France is pushing for a cap on oil prices “not only on Russian oil” but that “take[s] into account all market players”. (https://www.politico.eu/article/france-wants-worldwide-cap-on-oil-prices/).
EU Extends Broadcasting Prohibition: The Council of the EU adopted Council Decision (CFSP) 2022/995 and Implementing Regulation (EU) 2022/994 extending the broadcasting prohibitions to three additional entities: Rossiya RTR / RTR Planeta, Rossiya 24 / Russia 24, and TV Centre International. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.LI.2022.167.01.0003.01.ENG&toc=OJ%3AL%3A2022%3A167I%3ATOC and https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.LI.2022.167.01.0001.01.ENG&toc=OJ%3AL%3A2022%3A167I%3ATOC).
Remarks by President Charles Michel before the G7 Summit in Schloss Elmau, Germany: On June 26, 2022, at the opening of the G7 summit in Germany, European Council President Michel stated that G7 discussions will focus on the situation in Ukraine. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/26/remarks-by-president-charles-michel-before-the-g7-summit-in-schloss-elmau-germany/).
Putin’s War Is Forcing Italy to Rethink Its Historic Ties to Russia: The invasion of Ukraine is exposing a fissure over attitudes to Moscow that runs through Italian business, politics and society at large. (https://www.bloomberg.com/news/articles/2022-06-25/putin-s-war-is-forcing-italy-to-rethink-its-historic-ties-to-russia).
Hungary Will Not Discuss Ban on Russian Oil With EU: Speaking over Facebook, Hungarian Foreign Minister Peter Szijjarto said on Monday that “Hungary doesn’t want to hold talks on a gas embargo… That would practically incapacitate our economy and the entire country…” (https://tass.com/economy/1472149)
EU Updates Consolidated FAQ: On June 24, 2022, the European Commission published an updated consolidated version of the frequently asked questions concerning sanctions adopted following Russia’s military aggression against Ukraine. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-consolidated_en.pdf).
EU Publishes First FAQs on Business Services and Trust Services: On June 24, the European Commission published the first version of the FAQs on business services (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-business-services_en.pdf) and trust services (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-trusts-services_en.pdf).
EU Updates FAQs on Oil Imports, Imports and Purchase of Goods, and Road Transport: On June 24, the European Commission published updated versions of the FAQs on oil imports(https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-oil-imports_en.pdf),imports and purchase of goods (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-imports-purchase-goods_en.pdf), and road transport(https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-road-transport_en.pdf).
EU Sanctions Do Not Restrict EU and Third Countries’ Trade in Agrifood Products: The European External Action service published a fact-sheet stating that the EU sanctions do not restrict EU and third countries’ trade in agrifood products. (https://www.eeas.europa.eu/sites/default/files/documents/Food%20security%20fact-sheet_2.pdf).
Germany Considering Nationalizing Nord Stream II Pipeline: On Friday, reports emerged that Germany is considering nationalizing part of the Nord Stream II Pipeline. This would allow the pipeline to connect to a floating LNG terminal that is already connected to Germany’s gas transmission system. German analysts are still working through the legal and political consequences of the action. (https://news.yahoo.com/germany-could-nationalize-part-nord-162000632.html).
Russia Sanctions vs. Recession Risk in Europe: EU States Look to Stem Rising Inflation: Since Russia invaded Ukraine four months ago, the cost of living crisis has become a global issue. Prices have gone up around the world. In Europe, the countries that use the euro saw an average of 8.1 percent inflation in May. Pressure on prices, combined with stuttering economic growth, has sparked fears of a recession. These concerns could still come into play regarding the EU’s response to the Russian invasion of Ukraine. In this program, we’re joined by two MEPs to discuss how the EU should balance sanctions against Russia with the risk of recession. (https://www.france24.com/en/tv-shows/talking-europe/20220624-russia-sanctions-vs-recession-risk-in-europe-eu-states-look-to-stem-rising-inflation).
EU Updates Guidance on Gas and Oil Imports, State-Owned Enterprises, Insurance and Reinsurance, Agricultural Products from Russia and Agricultural Products from Ukraine: On June 22 and 23, 2022, the European Commission updated 5 different FAQs on Russian Sanctions. (https://ec.europa.eu/info/business-economy-euro/banking-and-finance/international-relations/restrictive-measures-sanctions/sanctions-adopted-following-russias-military-aggression-against-ukraine_en#oil).
EU Publishes First Consolidated Guidance of Russian FAQs: On June 23, 2022, the European Commission published a consolidated version of the frequently asked questions concerning sanctions adopted following Russia’s military aggression against Ukraine. This is the first time that all the FAQs are gathered in a single document. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-consolidated_en.pdf).
Uncertainties Regarding the Application of Sanctions to Kaliningrad: Following the decision of Lithuania to ban the transit of goods under EU sanctions from mainland Russia to Kaliningrad, the Commission is said to be working on new guidance that makes clear that Lithuanian customs authorities have to check the goods to avoid sanctions evasion, but can allow onward transport of metals if they are destined for Russia’s internal market. Lithuanian Prime Minister Ingrida Šimonytė insists, however, that the transit ban on steel and ferrous metal through the EU is part of the bloc’s sanctions, as agreed by all 27 members. (https://www.politico.eu/newsletter/brussels-playbook/kaliningrad-simmers-enlargement-hypocrisies-renew-and-bulgaria/).
EU Grants Ukraine, Moldova Candidate Status: On Thursday, the EU announced that it had granted Ukraine and Moldova candidate status for the Union. Ukraine has long sought this status, and the EU’s decision to approve its candidate status is likely in part due to the Russian invasion. (https://www.reuters.com/world/europe/wind-change-europe-path-eu-opens-ukraine-2022-06-23/).
Hungary Pushes for Ceasefire, No Additional Sanctions: Speaking on the sidelines of an EU summit on Thursday, Balazs Orban, a senior aide to Hungarian Prime Minister Viktor Orban stated that the bloc should not seek any more sanctions on Russia, and instead push for Russia and Ukraine to organize a ceasefire and conduct negotiations. He stated, “At the end of the day Europe will be on the losing side of this war because of the economic problems. Our recommendation would be that we should stop the sanction process.” (https://www.reuters.com/world/europe/no-more-eu-sanctions-russia-needed-negotiations-better-option-hungary-2022-06-23/).
12 EU Countries Facing Gas Disruptions: On Thursday, EU Climate Policy Chief Frans Timmermans said that 12 EU countries have been impacted by Russian gas supply cuts through the Nord Stream pipeline. Russia slashed capacity in the pipeline last week, citing difficulties in sourcing equipment due to international sanctions. (https://www.reuters.com/business/energy/russian-gas-cuts-have-hit-12-countries-eu-climate-chief-says-2022-06-23/).
Germany Moves to Gas “Alert Level”: On Thursday, Germany announced that it had moved to its so-called “alert level” of its emergency gas plan. The move means that Germany now seeks a high risk of long-term gas supply shortages. The shift can come when there is “disruption of gas supply or exceptionally high gas demand which results in significant deterioration of the gas supply situation occurs but the market is still able to manage that disruption or demand without the need to resort to non-market-based measures.” (https://www.cnbc.com/2022/06/23/germany-triggers-alert-level-of-emergency-gas-plan-sees-high-risk-of-long-term-supply-shortages.html).
Council of the EU Adopts Conclusions on a Framework for Coordinated EU Response to Hybrid Campaigns: The Council of the EU adopted its non-binding conclusions on a framework for coordinated EU response to hybrid campaigns. While recalling that primary responsibility for countering hybrid threats lies within Member States, the Council identified the main principle that should guide coordinated EU response. The Council notably calls on Member States to develop an efficient monitoring mechanism and to collect relevant early signals and exchange information. Priority should be given to measures aiming to mitigate and terminate the impact of a detected campaign, as well as to prevent its further expansion and escalation. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/21/council-conclusions-on-a-framework-for-a-coordinated-eu-response-to-hybrid-campaigns/).
Ireland Froze 1.72 Billion Euros of Russian Assets: The Department of Foreign Affairs of Ireland announced that Ireland has frozen €1.72 billion of assets linked to sanctioned Russian individuals and entities. This is almost double the €839 million that was contained in an EU document in early April. (https://www.irishtimes.com/business/economy/2022/06/21/ireland-freezes-172bn-of-russian-assets-following-rounds-of-sanctions/).
Council of the EU to Remove Russian Lobbies from Transparency Register: The French presidency of the Council informed national diplomats last week of its intention to have representatives of Russian interests suspended from the EU’s transparency register. Inclusion in the register is a requirement for access to the European Commission, Parliament and Council premises. The European Parliament already banned lobbyists for Russia-based entities earlier this month. (https://www.politico.eu/article/eu-russia-lobbyist-ban/).
Japan Asks EU to “Avert Impact” of Russian Shipping Insurance Ban on Sakhalin Oil: Japan’s Ministry of Economy, Trade and Industry has requested the EU “avert the impact” of Sakhalin equity oil liftings from the EU’s ban on insuring and financing seaborne transport of Russian oil to third countries. (https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/062222-japan-asks-eu-to-avert-impact-of-russian-shipping-insurance-ban-on-sakhalin-oil).
EU to Temporarily Return to Coal Power: On Wednesday, the EU announced a temporary shift back to coal power in response to the sudden decrease in gas flow from the Russian Nord Stream pipeline. Gazprom cut supplies the line by sixty percent over the past week. The head of the International Energy Agency warned that “Europe needs to prepare immediately for the eventuality of Russia turning off all gas exports to the region this winter.” (https://www.reuters.com/business/energy/russian-gas-flows-europe-via-nord-stream-ukraine-unchanged-2022-06-22/; https://www.theguardian.com/business/2022/jun/22/what-if-russia-cuts-europe-gas-exports-winter).
EU to Discuss Gold as New Target of Sanctions: Ahead of the European Council Summit on June 23-24, Reuters reports that gold is a possible new target of EU sanctions against Russia. The European Council is currently split between Member States wanting to push for a 7th package of sanctions and those wanting to focus on implementation of current measures. (https://www.reuters.com/world/europe/eu-leaders-keep-sanction-pressure-russia-gold-flagged-new-target-2022-06-21/).
Russia to Summon EU Ambassador Over Kaliningrad Transit: The Governor of Kaliningrad mentioned that the Russian foreign ministry will summon European Union ambassador to Moscow on Tuesday. This summon follows the decision of Lithuania to ban the transit of goods under EU sanctions from mainland Russia to Kaliningrad. (https://www.reuters.com/world/moscow-summon-eu-ambassador-russia-over-kaliningrad-transit-kaliningrad-governor-2022-06-20/).
African Union Calls on the EU to Ease Food Payments to Russia: Senegalese President Macky Sall, Chair of the African Union called the EU to provide some scope for African states to pay for imported agricultural products. The African Union mainly points to the consequences of the SWIFT ban and request a mechanism as for gas and oil. (https://www.politico.eu/article/african-union-chief-urges-eu-to-ease-food-payments-to-russia/).
Top Advisor to German Chancellor Suggests Focusing on Long-Term Relationship with Russia: German Chancellor Olaf Scholz’s top foreign policy aide suggested Europe should focus more on preserving long-term relations with Russia and less on the specifics of German tank shipments to Ukraine. He also called for a softer approach toward China and argued that Ukraine should not be granted any “rebates” on its bid to become an EU member. (https://www.politico.eu/article/plotner-unplugged-top-germany-adviser-controversy-russia-comments/).
Airbus Calls on International Community to Spare Russian Titanium from Sanctions: On Tuesday, major European aerospace manufacturer Airbus urged the international community to avoid imposing sanctions on Russian titanium, as the company is heavily reliant on the product in its operations and approving new suppliers is difficult. Though Airbus is not the only importer of Russian titanium, American companies Boeing and Raytheon have publicly announced their intent to cease partnerships with Russian titanium providers. (https://www.wsj.com/articles/airbus-calls-on-west-to-avoid-sanctions-on-russian-titanium-11655817028).
German Exports to Russia Drop by Half: Germany’s exports to Russia slumped 50 percent in May compared to the same month last year, as a result of the war and sanctions. Russia was ranked 10th among the most important destinations for German exports outside the EU in May. (https://www.politico.eu/article/german-exports-to-russia-drop-by-half-in-may/).
EU Commission President Calls to End Unanimity in Foreign Policy Decisions: EU Commission President Von der Leyen said to Politico that “In foreign affairs, we really have to move to qualified majority voting”. Van der Leyen acknowledges, however, that such a major shift in EU’s decision-making would be difficult to achieve. (https://www.politico.eu/article/commission-president-ursula-von-der-leyen-end-unanimity-eu-foreign-policy/).
EU Extends Crimea and Sevastopol Sanctions by One Year: On Monday, the Council of the EU extended the sanctions relating to the illegal annexation of Crimea and Sevastopol by one year. These sanctions include restrictions relating to imports of certain products, infrastructure or financial investments and tourism services, and on the exports of certain goods and technologies. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/20/crimea-and-the-city-of-sevastopol-eu-extends-sanctions-over-russia-s-illegal-annexation-by-one-year/).
Council of the EU Adopts Conclusions on Global Food Insecurity: The EU Council adopted non-binding conclusions on global food insecurity, calling for a Team Europe response to the global food insecurity. The conclusions reiterate that there are no EU sanctions on Russian exports of food to global markets. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/20/global-food-insecurity-council-approves-conclusions-on-the-team-europe-response/).
Member States Push for Seventh Sanctions Package, Funds for Ukraine: Reuters reported on Monday that “about one-third of the 27 EU governments, mostly Nordic and eastern states, want the EU Commission to begin work on a seventh round of sanctions.” Draft copies of conclusions obtained by Reuters do not currently indicate new sanctions are coming, but the draft may be revised. In addition, Sweden and Poland are also calling for additional funds to Ukraine through the European Peace Facility. (https://www.reuters.com/world/europe/eu-nations-push-new-russia-sanctions-more-military-aid-ukraine-2022-06-20/).
Top EU Diplomat calls Russian Blockade a “Real War Crime”: Josep Borrell, the EU’s High Representative, called Russia’s blockade of key grain exports from Ukraine a “real war crime” on arrival at a EU foreign ministers meeting in Luxembourg, adding that Moscow would have to be held “accountable” for its actions. (https://www.dw.com/en/ukraine-eu-condemns-real-war-crime-of-russian-grain-blockade/a-62187109).
Germany Conducts First Seizure of Sanctioned Real Estate: Prosecutors in Munich seized three private apartments and a bank account owned by a member of the Russian Duma and his wife on Monday. It is believed to be the first seizure of real estate assets of an individual sanctioned under the new Russia sanctions regime in Germany. The tenants currently occupying the apartments will continue living in the flats, but will pay rent directly to the Munich district court. (https://www.dw.com/en/germany-seizes-first-russian-owned-property-under-sanctions/a-62191796).
Russian Gas Cuts Impact Summer Filling Season: On Monday, The Wall Street Journal looked at the impact recent gas cuts had on European energy companies, noting that the summer months are typically the “filling season,” where energy companies stock up on gas supplies for the winter while demand for heat is low. Given the reduction in Russian gas exports, this filling campaign is going slower than usual, which has led some countries, like Germany, to unveil mitigation strategies even while demand is low. (https://www.wsj.com/articles/less-russian-gas-puts-europes-winter-fuel-supply-in-jeopardy-11655725207?mod=hp_lead_pos10).
Polish Official Calls for Tougher Sanctions on Russia: In a Saturday interview with German newspaper Welt am Sonntag, Poland’s Deputy Foreign Minister Marcin Przydacz said that the sixth EU sanctions package “was not enough to weaken Putin and his military machine sufficiently.” His proposals for a seventh EU sanctions package include a total ban on the export of EU dual use goods to Russia. Polish negotiators are expected to push for a seventh EU package during an EU foreign minister’s meeting on Monday in Luxembourg. (https://www.thefirstnews.com/article/poland-calls-for-tougher-sanctions-on-russia-31142).
Lithuania Bans Transit Through its Territory to Kaliningrad: Lithuania’s national rail service announced on Saturday that it had banned transit through its territory of goods bound for the Russian enclave of Kaliningrad. The Governor of Kaliningrad estimated that the ban, which entered into force on Saturday, would cover 40 to 50 percent of the items Kaliningrad imports from and exports to Russia, and, if it remains in place for a long time, the Governor promised to work with the Russian government to get more ferries to move items from mainland Russia to the enclave. (https://www.aljazeera.com/news/2022/6/18/lithuania-enforces-eu-sanctions-on-goods-to-russias-kaliningrad).
Germany Announces Efforts to Reduce Gas Consumption: As Russia reduces gas shipments to countries across the EU, Germany announced measures to reduce natural gas consumption on Sunday. The country will restart coal-fired power plants and offer incentives for companies to reduce gas consumption. (https://www.wsj.com/articles/germany-steps-up-measures-to-conserve-gas-as-russia-slows-supply-to-europe-11655642717).
Italy Receives Reduced Gas Volumes from Gazprom: On Sunday, Italian energy company Eni announced that it was receiving gas from Gazprom, though at approximately 50 to 65 percent of its requested volumes. (https://tass.com/economy/1468153).
Commission Recommends EU Council to Confirm Ukraine’s EU Candidate Status: On Friday June 17, 2022, the European Commissions issued its recommendation regarding Ukraine’s EU candidate status, and recommended the EU Council to grant Ukraine EU candidate status. A similar opinion was issued regarding Moldova and Georgia. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3790).
EU Updates Guidance on State-Owned-Enterprises: On June 16, 2022, the European Commission updated the FAQ on State-Owned-Enterprises. The Commission added one question on the provision of legal services.https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-state-owned-enterprises_en.pdf).
EU Updates Guidance on Central Securities Depositories: On June 16, 2022, the European Commission updated the FAQ on Central Securities Depositories. The Commission added one question on the Russian National Securities Depository (NSD). (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-central-securities-depositories_en.pdf).
Germany Urges Citizens to Reduce Gas as Gazprom Cuts Supply: On Wednesday, Germany urged its citizens to reduce gas consumption as Russia curbs gas exports through the Nord Stream pipeline due to alleged technical problems. Gazprom also announced that it was experiencing problems with gas supplies to Italy, Slovakia, and Austria. European nations claim these curbs are not due to technical problems, but rather political motivations. (https://www.ft.com/content/9cdd8457-0e5a-4452-af3e-9df7107fd128).
Ukraine Contemplates Suing Russia for Environmental Crimes: Ukraine is gathering evidence and contemplating options to sue the Russian military for environmental crimes committed during the invasion as a potential source to finance reconstruction. Total damage is estimated at 6.6 billion euros. Ukraine could bring the case before its national courts, options before international courts are limited. (https://www.politico.eu/article/how-ukraine-want-make-russia-pay-for-war-environmental-damage/).
French, German, Italian Leaders visit Ukraine: French President, German Chancellor and Italian Council President visited Kyiv and Irpin today. The visit takes place ahead of a meeting of EU leaders next week, to decide whether to grant Ukraine candidate status to join the EU. (https://www.politico.eu/article/macron-scholz-draghi-kyiv-visit-zelenskyy-ukraine/).
Russia Reduces Gas Exports to Germany and Italy: Gazprom announced it was reducing capacity on the NordStream1 pipeline to 60 percent. Italian company ENI also announced on Wednesday that Gazprom had also cut supplies to Italy by 15 percent. (https://www.ft.com/content/1e972cf5-f42b-4ed8-b81b-6969dd91ccfd).
Dutch Court Rules on Termination of Contracts in Russia: A Dutch Court has established that there are legal grounds for Western contractors with outstanding contracts in Russia to terminate their commitments and exit the country, thus offering a defense against future compensation claims by former Russian clients. In a judgement published on June 9 the Rechtbank district court in Amsterdam rejected an appeal from Dutch-registered Saren — acting on behalf of Russian operator Arctic LNG 2 — seeking payment of €39.5 million ($41.2 million). (https://www.upstreamonline.com/lng/dutch-court-paves-way-for-western-contractors-to-exit-russian-lng-projects/2-1-1238544).
Russian Oligarchs Flew Jets in EU Airspace, Despite Ban: On Wednesday, German newspaper Welt am Sonntagreported that at least 30 private jets and helicopters owned by Russian oligarchs have used EU airspace, despite the bloc’s ban on Russian aircraft in its airspace beginning on February 27. Aircraft belonging to Eugene Shvidler, Alexander Zanadvorov, Alisher Usmanov, Albert Avdolyan, Viktor Vekselberg, and Roman Abramovich were found in EU airspace in the research. (https://www.businessinsider.com/russian-oligarch-jets-helicopters-fly-eu-airspace-sanctions-ukraine-war-2022-6).
EU Signs Gas Deal With Israel and Egypt: The EU, Israel and Egypt signed a tripartite natural gas export deal allowing “significant” exports of Israeli gas to Europe. Israeli gas will be brought via a pipeline to Egypt’s LNG terminal on the Mediterranean, where some will be liquefied and transported on tankers to European shores. In January, the EU and Israel already signed a deal for construction of an undersea electricity cable that will link the power grids of Israel, Cyprus and Greece. (EU signs gas deal with Israel, Egypt in bid to ditch Russia | Oil and Gas News | Al Jazeera).
Latvia Reports Over 400 Attempts at Sanctions Evasion: On Wednesday, Ieva Jaunzeme, head of the Latvian State Revenue Service, reported that the country has seen over 400 attempts at sanctions evasion since the start of Russia’s invasion of Ukraine. She said that most of the instances involved falsified contracts to allow otherwise embargoed goods to enter the country. She added that the Service has opened over a dozen criminal cases already based on the information obtained. (https://bnn-news.com/latvian-vid-uncover-more-than-400-attempts-to-breach-sanctions-against-russia-and-belarus-235494).
Ikea Announces Closure of Russia Business: On Wednesday, Swedish furniture company Ikea announced that it would sell factories, close offices, and reduce its workforce in Russia amid restrictions and supply chain issues, although it will pay its employees through August. Ingka Group, which owned IKEA stores in Russia, will keep its separately branded “MEGA” malls open. (https://www.reuters.com/business/retail-consumer/ikea-further-scale-down-operations-russia-2022-06-15/).
EU Updates Guidance on Imports and Purchase of Goods: On June 14, 2022, the European Commission updates the FAQ on imports purchase of goods. The Commission added three questions on goods not transiting through the EU and goods already released for free circulation in the EU. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-gas-imports_en.pdf).
Germany Struggles Over Schwedt Refinery: The German government is considering temporarily handing control of the Schwedt refinery’s day-to-day operations to British oil major Shell or handing operations to Polish refinery PKN Orlen. Schwedt provides most of Berlin’s fuel and is majority owned by Russian oil giant Rosneft. (https://www.reuters.com/business/energy/exclusive-germanys-refinery-dilemma-tests-russian-oil-ban-resolve-2022-06-14/).
Germany to Lend up to $10.4 billion to Rescue Ex-Gazprom Unit: Bloomberg reported Tuesday that the German government will lend as much as 10 billion euros ($10.4 billion) to rescue a former arm of Gazprom PJSC, which was brought under the control of the German energy regulator in April. The plan includes a loan from state-owned KfW Group, which could eventually be converted into a direct stake under a new form of trusteeship. The name of the company will change to Securing Energy for Europe GmbH. (https://www.bloomberg.com/news/articles/2022-06-14/germany-to-lend-up-to-10-4-billion-to-rescue-ex-gazprom-unit?srnd=premium).
Natural Gas Surges in Europe Amid Lower Russian Supply and U.S. LNG Delay: Benchmark futures jumped as much as 21% Tuesday when Gazprom announced it would reduce the flow of natural gas through the Nord Stream pipeline by 40%. After a fire broke out at the Freeport LNG terminal in Texas last week, the operator is now reporting that it may take 90 days for the facility to partially restart. Full capacity won’t return until late 2022, exacerbating concerns in Europe over the fragile energy market. (https://www.bloomberg.com/news/articles/2022-06-14/european-gas-prices-rise-as-fluctuating-flows-stoke-supply-fears?srnd=premium).
EU Seeks Expanded Energy Partnership with Israel: EU Commission President con der Leyen and Italian Prime Minister Draghi met with Israeli officials Tuesday as they sought to strengthen energy ties and reduce Europe’s reliance on Russian gas. The parties discussed two major energy projects with Israel: a power cable connecting Israel with Cyprus and Greece, and a pipeline for natural gas and hydrogen in the eastern Mediterranean. (https://www.bloomberg.com/news/articles/2022-06-14/european-union-working-to-forge-gas-and-power-ties-with-israel?srnd=politics-vp).
EU Issues Guidance on Execution of Prior Contracts: On June 13, 2022, the European Commission issued an FAQ on the execution of prior contract exemption under the Russian sanctions schemes. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-execution-prior-contracts_en.pdf).
Italy Is Considering the Nationalization of Lukoil Refinery: Lukoil’s refinery in Sicily could be severely impacted by the EU’s oil ban. Italian Ecological Transition Minister Roberto Cingolani said that “there are several options under study, one is something like nationalisation…another one is that an external buyer intervenes, for example.” (https://www.euractiv.com/section/energy/news/italy-minister-says-nationalisation-an-option-for-lukoil-refinery/).
EU Court Expected to Give Interim Ruling on EU Sanctions Against Alisher Usmanov: The Guardian reports that the Court of Justice of the European Union will render an interim decision on whether to suspend sanctions against Russian Oligarch Alisher Usmanov within the next two weeks. A final ruling that is likely to be made by the end of the year. (https://www.theguardian.com/business/2022/jun/08/eu-sanctions-alisher-usmanov-sisters-could-be-lifted-ecj-putin).
French, Italian, German Leaders Planning to Visit Ukraine This Week: On Sunday, sources within their respective governments stated that French President Emmanuel Macron, German Chancellor Olaf Scholz and Italian Prime Minister Mario Draghi were planning to visit Kyiv on Thursday, though they stressed that plans may change. The trip would be the first to Ukraine since the beginning of the war for the three Western leaders. (https://www.wsj.com/articles/russia-shells-chemical-plant-sheltering-civilians-ukraine-says-11655031115).
Lithuania Opens Cultural Center for Displaced Ukrainians: On Sunday, The New York Times reported that Lithuania has opened a “cultural center” for displaced Ukrainians living in the country. The center will offer education, career and psychological services, as well as recreation and child care. (https://www.nytimes.com/live/2022/06/12/world/russia-ukraine-war-news/a-new-cultural-center-in-lithuania-for-ukrainians-seeks-to-preserve-the-nations-vitality?smid=url-share).
Hungary says Russian Gas Ban Not in Next Sanction Package: Hungarian Foreign Minister Peter Szijjarto ruled out the possibility of including a Russian gas ban in the new package of sanctions of the EU, saying it would be “impossible.” (https://www.cnbc.com/2022/06/10/russian-gas-ban-hungary-says-eu-cant-impose-a-gas-ban-on-russia.html).
Clearstream Stops Russian Share Conversions: Clearing company Clearstream (part of the Deutsche Boerse) halted requests to convert Russian firms’ depository receipts into Moscow listed shares as a result of EU sanctions. Customers will not see any instructions, either new or already pending, related to Russian depository receipt conversions processed. (https://finance.yahoo.com/news/clearstream-halts-russian-share-conversions-112105150.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAA8BuIKKTLiDdrfE40tcd4gjxTxAZE4Ddfd5GyriPQRRKU8wKcLpwFnax4tlo_9t_Ok087VONKXjU1bmwHBUBG2Y7q3g2070t3kfHMvYv_veRJg5PEa_rnQt6wHFIRyAxBnrgSYBfu7K1awJU6SwzznLcx2OFJdJ25BdC7Glz93e).
Serbian President Does not Believe EU Sanctions are Efficient: Responding to calls implement EU sanctions, Serbian President Aleksandar Vucic said he did not believe sanctions to be “efficient.” German Chancellor Olaf Scholz visited Serbia on Friday, where he pressured the country, which is currently a candidate for EU membership, to implement sanctions on Russia similar to those in place in the EU. (https://www.reuters.com/world/europe/scholz-heads-western-balkans-help-eu-membership-bid-2022-06-10/).
President Von Der Leyen Visits Kyiv: On Saturday, European Commission President Ursula Von Der Leyen visited Kyiv. In joint press availability with Ukrainian President Volodymyr Zelenskyy, she focused on the EU’s commitment to rebuilding Ukraine, but the underlying purpose of the visit was to discuss Ukraine’s bid for EU membership. (https://ec.europa.eu/commission/presscorner/detail/en/statement_22_3622; https://www.politico.eu/article/ursula-von-der-leyen-ukraine-europe-membership-russia-war/).
European Parliament Adopts Foreign Strategy Following the War in Ukraine: The European Parliament adopted a non-binding recommendation on the EU’s Foreign, Security and Defence Policy after the Russian war of aggression against Ukraine. Members of the European Parliament (MEPs) notably recommend introducing qualified majority voting for the adoption of EU personal sanctions regimes. MEPS also recommend to bring the UK into a framework for common cooperation on defence and foreign policy matters. (https://interfax.com.ua/news/general/837995.html).
EU Announces €205 Million in Humanitarian Aid: Today, the EU announced another €205 million in humanitarian assistance for Ukraine. The announcement came while the Commissioner for Crisis Management, Janez Lenarčič, was visiting Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3549).
EU Sets Up €20 Million Support Fund for Ukrainian Start-Ups: The European Commission launched a €20 million action to support Ukrainian start-ups through an amendment of the 2022 European Innovation Council (EIC) work program. The new initiative will support at least 200 Ukrainian deep tech start-ups with up to €60,000 each. (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3533).
Committee Defers Decision on Russian Credit Default Swaps: The EMEA Credit Derivatives Determinations Committee said Thursday that it would defer its decision on how to hold a potential auction on Russian credit default swaps following an update on U.S. sanctions by the Treasury Department earlier this week with the goal of allowing “credit derivatives market participants time to assess the implications that the updated OFAC (Office of Foreign Assets Control) FAQs may have on the ability of market participants to participate in an auction.” (https://wtvbam.com/2022/06/09/committee-defers-decision-on-russia-cds-auction-after-u-s-sanctions-update/).
Luxembourg froze 4.2 Billion Euros in Russian Assets: Luxembourg Minister of Finance announced that the country froze 4.2 billion euros in Russian assets. According to the Grand-Duchy, 90 people and 1,100 legal entities were identified and sanctioned by Luxembourg. (https://www.law360.com/corporate-crime-uk/articles/1500682).
Freeze and Seize Task Force will Investigate Tax Fraud: The Commission announced the establishment of a group within the Freeze and Seize Task Force to help discover possible tax crimes and recover unpaid taxes as part of the effort to sanction Russia and Belarus. (https://www.law360.com/tax-authority/articles/1500722/eu-sets-up-group-to-audit-sanctioned-russians).
President of European Council Reports to Parliament after Addressing the UN Security Council: European Council President Charles Michel addressed the plenary session of the European Parliament after his speech before the UN Security Council. The President addressed the food crisis and reiterated that the EU did not impose sanctions on agricultural products. Charles Michel also mentioned the financing needs of Ukraine and said that Russia should pay to rebuild the country and said the EU is looking into the possibility of confiscating assets of sanctioned Russian individuals and entities. Finally, President Michel stated that the Commission is considering the possibility of trying to lower the gas price by capping it. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/08/report-by-president-charles-michel-to-the-european-parliament-plenary-session/).
EU Updates Russia Sanctions Guidance on State-Owned-Enterprises: On June 8, 2022, the European Commission updated its Russian Sanctions Guidance on state-owned enterprises. The Commission added a question relating to the application of the wind down period. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-state-owned-enterprises_en.pdf).
EU Commits 7.25 Million Euros to Support ICC Investigations: The European Commission launched a new project to support the investigating capacities of the International Criminal Court with 7.25 million euros to help the ICC respond to the ongoing investigations into war crimes committed by Russia in Ukraine. (https://ec.europa.eu/commission/presscorner/detail/en/MEX_22_3542).
Uncertainties on the Violation of the Blocking Statute After Greece Seized Russian Vessel:Legal uncertainties arise following the decision of the Greek authorities to seize a Russian ship transporting Iranian oil. The ship was released following a change in ownership, but Greek courts granted a request from the U.S. Department of Justice to transship the oil to an American ship in application of U.S. sanctions. Euractiv wonders if this amounts to a violation of the Blocking Statute. The EU Commission stated it does not have enough information to take position. (https://www.euractiv.com/section/politics/short_news/commission-greece-lost-in-translation-over-seizure-of-russian-ship-transferring-iranian-oil/).
EU Commission Answers Parliamentary Question on SME Support: The European Commission replied to a question from a Member of the European Parliament regarding the support to SMEs affected by the Ukrainian crisis. Commissioner Breton recalled the existence of the Temporary Crisis Framework adopted in March 2022 and of the Recovery and Resilience Facility. There are no plans for additional financial support for businesses affected by this crisis from other EU programs, he stated. (https://www.europarl.europa.eu/doceo/document/E-9-2022-000826_EN.html).
Two Actions for Annulment of Belarussian Sanctions Brought Before EU Courts: Alexander Evgenevich Shartov and company Synesis TAA, both of which are sanctioned under EU restrictive measures against Belarus, lodged actions for annulment before the General Court of the European Union. (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:62022TN0215&from=EN).
Commission Answers Parliamentary Question on Media Ban: The European Commission confirmed that only companies mentioned in Annex XV to Regulation 833/2014 will see their license suspended. However, transactions with companies associated with sanctioned individuals such as Yandex can be affected and operators need to exert appropriate due diligence when dealing with them. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001234_EN.html).
EU High Representative Answers Question on Russia Arm Embargo: EU High Representative Josep Borell, on behalf of the Commission, clarified that the exemption for pre-2014 contracts from the arm embargo was deleted by the Council and that arms exports, beyond the arms embargo in place, are subject to the Common Position of December 8, 2008. (https://www.europarl.europa.eu/doceo/document/E-9-2022-001537-ASW_EN.pdf).
Serbia Stops Receiving Russian Oil: Following the EU’s import ban on Russian oil, Serbian oil company NIS will no longer receive Russian oil from the Adriatic oil pipeline supplied by tanker via a Croatian harbor. (https://www.euractiv.com/section/energy-environment/news/eu-sanctions-fallout-serbia-to-stop-receiving-russian-oil-via-adriatic-pipeline/).
France Turns to UAE for Russian Oil Alternatives: French Finance Minister said that France is in discussions with the UAE regarding the supply of oil and diesel as an alternative to Russian oil. (https://www.politico.eu/article/le-maire-france-oil-russia-embargo-inflation/).
Deutsche Bank Offers to Relocate Russian Employees to Berlin: The Wall Street Journal reported Tuesday that Deutsche Bank had offered nearly 1500 employees from its technology center in Russia the opportunity to move with their families to Berlin. According to the report, about half of those given the offer accepted it. Deutsche Bank has not said publicly what it plans to do with the Russian center and the staff who will stay there, but it did note in March that it would be winding its Russian operations down. (https://www.wsj.com/articles/deutsche-bank-moves-hundreds-of-employees-from-russia-to-berlin-11654599210).
Cypriot Services Sector Struggling to Understand EU Sanctions Exemptions: The services sector, as well as the Ministry of Finance, in Cyprus are reportedly working to understand the EU’s sixth tranche of sanctions on Russia, including the prohibition on the provision of auditing, accounting, business, administrative, and PR services to Russian entities. So far, it seems, the sanctions do not apply to the provision of services intended for the exclusive use of legal persons, entities or bodies established in Russia that are owned or controlled exclusively or jointly by a legal person, entity or body which is incorporated or constituted under the law of a Member State. The sector is trying to understand whether the exemption – a company established in Cyprus by Russians which in turn established another company in Russia – applies to Cypriot companies established by Russian entities. (https://cyprus-mail.com/2022/06/07/cypriot-services-sector-still-grappling-with-russian-sanctions-impact/).
Investigation Shows European Companies Increased Purchases of Russian Oil:According to an investigation from Global Witness, Greek, Cypriot, and Maltese shipping firms have increased their shipments of Russian oil since the invasion of Ukraine began. Investigators are skeptical that the recently announced EU ban on Russian oil will change the situation, saying that European shipping companies are still permitted to ship Russian oil to non-EU ports even with the new restrictions.(https://www.independent.co.uk/news/business/russia-ukraine-oil-sanctions-shipping-b2092658.html).
Council President Blames Russia for Food Crisis: Speaking to the UN Security Council on Monday, European Council President Charles Michel blamed Russia for the impending food crisis due to the war in Ukraine. He stressed that the EU has no sanctions on the agricultural sector, and that Russia could ship grain to non-EU nations if it wanted to. (https://www.consilium.europa.eu/en/press/press-releases/2022/06/06/address-by-president-charles-michel-at-the-un-security-council-on-peace-and-security-in-ukraine/; https://www.politico.eu/article/at-un-michel-blames-russia-for-food-crisis/).
EU Sanctions Impact “Google of Russia”: In response to EU sanctions, Arkady Volozh promptly resigned from his position as CEO and board member of Yandex NV, Russia’s most popular search engine known colloquially as the “Google of Russia.” Volozh does not own shares in Yandex directly, instead depositing his shares in a family trust after a 2019 restructuring. Though he called the sanctions “misguided,” he promised to not give directions to the trust after his designation. (https://www.bloomberg.com/news/articles/2022-06-06/the-internet-pioneer-brought-low-as-kremlin-ally-by-eu-sanctions).
Melnichenko’s Wife Plans to Contest EU Sanctions: According a statement provided to Reuters on Saturday, Aleksandra Melnichenko, wife of sanctioned Russian oligarch Andrey Melnichenko, plans to “vigorously contest the unfortunate decision” by the EU to impose sanctions on her. Aleksandra is not a Russian citizen, but the EU sanctioned her because she “takes good advantage of the fortune and benefits from the wealth of her husband.” Andrey has already sued to contest the sanctions against him in EU courts. (https://www.reuters.com/world/europe/wife-russian-billionaire-melnichenko-contests-eu-sanctions-2022-06-04/).
German Press Expects Taxpayers to Pay 5 Billion More for Gas Due to Sanctions:In a survey of industry representative, German weekly Welt am Sonntag reports that German taxpayers can expect to pay 5 billion euros more in gas payments as a result of sanctions on Russia. Though the paper reported that gas supplies were not at risk, prices would increase as the German government replaces Russian gas with gas purchased on the spot market. (https://www.reuters.com/business/energy/germany-faces-5-bln-euros-year-hit-russian-gas-sanctions-newspaper-2022-06-05/).
EU Considering Options to Reduce Energy Consumption: The Wall Street Journal on Sunday reported on European efforts to reduce energy consumption. These efforts included French subsidies to homeowners to renovate their homes in a more energy-efficient manner, and bloc-wide efforts to switch from gas heating systems to electric heating systems. Still, members of European parliament warn that these efforts will take time and require significant investment. (https://www.wsj.com/articles/ukraine-war-drives-europe-to-accelerate-energy-efficiency-11654434181).
EU Adopts 6th Sanctions Package: the EU has adopted its 6th sanctions package against Russia, which notably consists of:
o Asset freeze measures against members of the Russian armed forces, officials, media personalities, oligarchs, family members of previously designated individuals and entities involved in the industrial and technological sectors.
– Grounds for authorization have been introduced for the provision of electronic communication services under certain conditions.
o A prohibition on the purchase, import, or transfer of crude oil or petroleum products originating in or exported from Russia and the provision of related services.
– Exemptions apply for:
– One-off transactions and for contracts concluded before June 4, 2022, until December 5, 2022 for crude oil and until February 5, 2022 for petroleum products, subject to notification requirements.
– Seaborne crude oil and petroleum departing or transiting through Russia provided the origin and owner of the goods are non-Russian.
– Crude oil delivered by pipeline (restrictions are foreseen on the transfer, transport or sale of crude oil delivered by pipeline into a Member State)
– For landlocked Member States if the supply of crude oil by pipeline is interrupted for reasons outside the control of that Member State.
– If required in order to meet the essential need of the purchaser in Russia or of humanitarian projects in Russia.
– Croatia and Bulgaria have longer phase-out periods.
o A prohibition on services related to the transport to third countries of crude oil and petroleum products originating in or exported from Russia.
– Exemptions apply (i) until December 5, 2022 for contracts concluded before June 4, 2022 and (ii) for oil and petroleum products departing or transiting through Russia provided the origin and owner of the goods are non-Russian.
o Extension of the list of entities for which enhanced dual-use controls apply.
o Extension of the list of items subject to controls to cover certain electronics, chemicals, and material processing items, spirits and liqueurs and heading 2303.
o Addition of exemptions for transactions with state-owned/related entities.
o Prohibition on the provision of financial messaging services (SWIFT) to Sberbank, Credit Bank of Moscow and JSC Russian Agricultural Bank and the entities in Russia they own for more than 50%, as of June 14, 2022.
o Prohibitions on the provision of accounting, auditing, including statutory audit, bookkeeping, or tax consulting services, or business and management consulting or public relations services to the Government of Russia and entities established in Russia, subject to exemptions and derogations.
o Derogation to allow for the granting of authorizations for deposits or the provision of wallet, account or custody services intended exclusively for the payment of fees or service charges for the routine holding or maintenance of frozen funds or economic resources.
o Extension of the derogations relating to the sale of transferable securities denominated in an EU currency to EEA and Swiss nationals and residents.
o The entry into force of prohibitions affecting trusts at an earlier date.
o Extension of the broadcasting prohibition to three additional entities and the advertising of products or services.
o Enforcement provisions clarify that Member States shall have criminal penalties, as appropriate, and provide for appropriate measures of confiscation of the proceeds of sanctions infringements.
o Belarussian sanctions have been reinforced with inter alia additional individuals and entities subject to asset freeze measures, reinforced trade controls, prohibition of financial messaging services to Belinvestbanks and the entities in Belarus it owns for more than 50 percent as of June 14, 2022.
See the press release and Q&A:
https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2802
https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_2823
See the legal texts:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2022:153:TOC
EU, Israel, and Egypt Near Deal on Natural Gas: Bloomberg reports that the EU is set to sign an agreement this month with Egypt and Israel to supply the bloc with natural gas amidst its efforts to reduce its dependence of Russian supplies. The memorandum of understanding outlining the terms of the arrangement is set to be signed when EU Commission President Ursula von der Leyen visits Cairo at the end of June. The deal will include Israeli natural gas being liquefied in Egyptian processing plants with the final product being shipped to the EU. (https://www.bloomberg.com/news/articles/2022-06-03/eu-egypt-near-gas-supply-deal-in-shift-away-from-russia).
Finland Cuts Russian Power Link: Finish utility company Fortum Oyj has disconnected the interconnector between Imatra in Finland and Svetogorsk in Russia until further notice, following the failure of the Finish company to pay RAO Nordic Oy, a subsidiary of Russian energy company Inter RAO, on May 14. (https://tass.com/economy/1460299).
Luxembourg Prime Minister Criticizes Hungary’s Success in Removing Russian Orthodox Patriarch Kirill from Sanctions List: Speaking to the pan-European ALDE group on Friday, Luxembourg Prime Minister Xavier Bettel criticized Hungary’s success in the removal of Patriarch Kirill from the latest sanctions list as “not acceptable.” (https://www.reuters.com/world/europe/concessions-hungary-sanctions-not-acceptable-luxembourgs-pm-says-2022-06-03/).
Roman Abramovich and Other Russian Oligarchs Suing the EU Over Sanctions:POLITICO reported that at least 20 of Russia’s most powerful oligarchs are filing cases against the European Union to unfreeze their assets and unblock their visas, based on filings at the EU General Court. (https://www.politico.eu/article/roman-abramovich-sue-eu-sanctions-assets-visas-vladimir-putin-russia-war-ukraine-mikhail-fridman-petr-aven-alisher-usmanov/).
Hungary Blocks Sanctions Against the Head of the Russian Orthodox Church: After obtaining concessions on the Russian oil embargo, Hungary objected to the proposal to sanction the head of the Russian Orthodox Church Patriarch Kirill. The objection comes as a surprise as an agreement on sanctions was expected to be reached in Council after the EU Leaders’ summit agreed on the oil embargo. (https://www.politico.eu/article/hungary-throws-in-new-spanner-in-sanctions-discussions/).
EU Updated Russia Sanctions Guidance on Public Procurement: On June 1, 2022, the European Commission updated the Russian Sanctions Guidance on Public Procurement. The Commission updated a question on the types of public procurement covered by sanctions. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-public-procurement_en.pdf).
Dutch National Coordinator on Sanctions Presents His Report: This week the Dutch Coordinator for the implementation of sanctions Stef Blok presented his report to the Dutch Parliament. The report calls for the sharing of information between Member States on ultimate beneficial owners and for a protocol on how to deal with operating companies in Europe. The report also calls on the Commission to share information with authorities ahead of the publication of the official sanctions list to prevent the moving of funds before publication. (https://www.government.nl/documents/reports/2022/06/02/report-by-the-national-coordinator-for-sanctions-compliance-and-enforcement).
Multiples Actions Against EU Sanctions Before EU Courts: Politico reported that twenty businessmen, politicians, and other individuals connected to the Kremlin are suing the Council of the EU before the General Court of the EU after having been sanctioned following the invasion of Ukraine. It will take years before the General Court rules on the applications. (https://www.politico.eu/article/more-than-20-of-putins-allies-fight-back-against-eu-sanctions/).
Russian Lobbyists Banned from European Parliament:European Parliament President Roberta Metsola announced that Russian company representatives may not enter Parliament buildings “effective immediately.” The ban will apply to all entities that are established in the Russia Federation and that are listed in the EU transparency register as well as entities subject to EU sanctions. (https://www.politico.eu/article/european-parliament-bars-russia-backed-lobbyists/).
EU Pushes Back on Allegations that EU Sanctions Threaten Food Security: EU Commission President Ursula von der Leyen recalls that the EU has no sanctions on food and agricultural products after Macky Sall, President of Senegal and Chair of the African Union raised concerns in an address to EU leaders. The EU and the African Union agreed on a message that puts the blame for disruptions to food supply on Russian President Vladimir Putin. (https://www.euractiv.com/section/global-europe/news/eu-steps-up-efforts-to-debunk-putins-food-security-propaganda/).
Italian Oil Imports from Russia Surge: AP News reported Wednesday that Italy has become the only country in Europe to increase Russian imports, despite the imposition of an oil embargo by the EU, as a consequence of the country’s need to protect one of its largest refineries. (https://apnews.com/article/russia-ukraine-politics-economy-global-trade-b0c193007210592123112e2db1069461).
EU Working on a Ban on Russian Oil Insurance Services: The EU is said to be working with G7 members to coordinate a ban on providing the insurance services needed to ship Russian oil to any destination. Bloomberg reports that the European Commission is in talk with the UK on this issue. (https://www.bloomberg.com/news/articles/2022-06-01/europe-seeks-g-7-coordination-on-russian-oil-insurance-ban).
EU Updated Russia Sanctions Guidance on Credit Rating, Deposits, Insurance and Reinsurance and State-Owned Enterprises and Customs: On June 1, 2022, the European Commission updated the Russian Sanctions Guidance on credit rating, deposits, insurance and reinsurance and state-owned enterprises and customs. The Commission added questions for credit rating relating to scoring services, credit rating on Russian entities, rating services for third parties, and the application of credit rating provisions to persons with a temporary residence permit outside of Russia. Other questions on insurance and reinsurance relate to exemptions for subsidiaries in Switzerland and EEA countries, reinsurance of export receivables on the basis of export/insurance contracts. For state-owned enterprises, the Commission provided an interpretation of the notion of “acting on behalf or at the direction of”, and of the exception provided in Article 5aa(2) of Council Regulation (EU) 833/2014. Finally, for customs, the Commission replied to questions on the return of cultural goods, daily crossing of Russian borders, and the definition of agricultural products. (https://ec.europa.eu/info/business-economy-euro/banking-and-finance/international-relations/restrictive-measures-sanctions/sanctions-adopted-following-russias-military-aggression-against-ukraine_en#customs).
EU Updated Russia Sanctions Guidance on Circumvention and Due Diligence: On May 31, 2022, the European Commission updated the Russian Sanctions Guidance on circumvention and due diligence. The Commission added a question on the authority responsible for interpreting anti-circumvention provisions. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-circumvention-due-diligence_en.pdf).
Denmark Holds a Referendum on Participation to EU’s Common Defense Policy: On June 1, 2022, Danes voted on the participation of Denmark to EU’s common defense policy. Denmark currently benefits from an opt-out and does not participate in EU’s foreign policy where defense is concerned, and does not contribute troops to EU military missions. Polls suggest that a strong majority of Danes will vote in favor of joining EU’s common defense policy. (https://www.euronews.com/2022/06/01/denmark-to-vote-on-europe-common-defence-opt-out-in-wake-of-ukraine-war).
EU Opens Door to Billions in Aid to Poland: The New York Times reported Wednesday that the EU’s executive arm had endorsed a Polish plan to address the EU Commission’s concerns over the politicization of its judiciary which would in turn lead to the disbursement of $38 billion in assistance. If the plan is approved, Polish officials expect the first tranche to be paid by September. (https://www.nytimes.com/2022/06/01/world/europe/poland-eu-ukraine-coronavirus.html?).
EU Leaders Agree on Russian Oil Embargo: European leaders agreed on a Russian oil embargo with a temporary exemption for pipeline imports to help landlocked states. EU officials reported that if Hungary did not commit to a cut-off date, tariffs on oil could be imposed without requiring unanimity in Council. The exemption could be a potential source of distortion to the single market with exempted-countries enjoying cheaper oil than others. Details of the embargo still need to be discussed and adopted by the Council. (https://www.ft.com/content/065d9946-b762-448b-9ab4-f1f213896d4a).
EU Summit Adopts Conclusions on Ukraine: The highly-awaited European Council conclusions mention (i) the need to gather evidence and to investigate crimes committed in Ukraine, (ii) the upcoming oil embargo, (iii) the need to continue to support Ukraine with a view to addressing humanitarian, liquidity and reconstruction needs (iv) the commitment of the EU to continue bolstering Ukraine’s ability to defend itself. The conclusions also address the question of the economic and political support and the impact on neighboring countries. (https://www.consilium.europa.eu/en/press/press-releases/2022/05/31/european-council-conclusions-on-ukraine-30-may-2022/).
Gas Unlikely to be Part of a New Round of Russian Sanctions: While Baltic States and Poland want to phase-out Russian gas supplies, Estonian Prime Minister says she does not expect to see gas in the next set of sanctions as it would have an effect on Europeans. Austrian chancellor also made similar remarks. (https://www.theguardian.com/world/2022/may/31/eu-leaders-say-gas-unlikely-to-be-part-of-new-round-of-russia-sanctions).
Sberbank Said to be Cut from SWIFT Under 6th Sanction Package: Bloombergreported that Russia’s biggest lender Sberbank will be cut from SWIFT under the upcoming 6th sanction package. (https://www.bloomberg.com/news/articles/2022-05-31/russia-s-biggest-lender-sberbank-targeted-in-eu-sanctions-plan?srnd=premium-canada).
Russia Cuts Gas Supply to the Netherlands, Denmark and Germany: Energy company Gazprom halted gas supply to the Dutch company GasTerra, Danish company Ørsted and Shell Energy for its contract to supply Germany. The decision follows the imposition of an oil embargo by the EU and the failure of Ørsted and Shell Energy to make payment in Rubles. GasTerra already found alternative supply sources while Ørsted said that a gas cut would not immediately put the country’s gas supplies at risk. (https://www.theguardian.com/world/2022/may/31/russia-cuts-gas-supplies-dutch-state-trader-sanctions-war).
EU Power Prices Reach a New High: On Tuesday, Europe’s benchmark price for power reached its highest level for 2022. In Germany, power prices for 2023 reached their highest level ever. EU’s energy storage levels are 46% full which is also a 2022 high. (https://markets.businessinsider.com/news/commodities/european-power-prices-hit-new-highs-russia-gas-cutoff-sanctions-2022-5).
Croatian President Does Not Believe EU Sanctions are Effective: Croatian President Zoran Milanovic seems to believe that an all-out energy embargo against Russia is necessary. On sanctions he stated that “perhaps one day, they will start producing some effect. Currently, neither has the rouble depreciated nor is Russia feeling the financial effects”. (https://www.total-croatia-news.com/politics/63263-croatian-president-does-not-believe-that-eu-sanctions-have-any-effect).
France Not Ruling out More Sanctions Against Russia: French President Emmanuel Macron stated on May 31, 2022 that, following a sixth European Union package of sanctions against Russia, nothing could be ruled out in terms of additional sanctions in the coming weeks. (https://www.reuters.com/world/europe/frances-macron-says-not-excluding-anything-about-additional-eu-sanctions-against-2022-05-31/).
Abramovich Contests EU Sanctions Before EU Court: Roman Abramovich filed a lawsuit before the General Court of the European Union following his inclusion on the list of individuals subject to an asset freeze. Abramovich holds a Portuguese passport and was forced to sell Chelsea football club after being sanctioned. (https://www.washingtonpost.com/sports/soccer/sanctioned-abramovich-files-lawsuit-at-eu-general-court/2022/05/31/d060cd16-e0f8-11ec-ae64-6b23e5155b62_story.html).
EU Updated Russia Sanctions Guidance on Credit Rating: On May 31, 2022, the European Commission updated the Russian Sanctions Guidance on Credit Rating. The Commission added two new questions on intragroup credit rating. (https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/faqs-sanctions-russia-credit-rating_en.pdf).
EU Commission Replies to Parliamentary Question on Aid to Rail Transporters Supporting Humanitarian Work in Ukraine: On May 30, 2022, Commissioner Vălean provided a written reply to a question from a Member of the European Parliament. In its reply, the Commission notably recalls that it adopted the Temporary Crisis Framework which recognizes that the transport of refugees and humanitarian aid do not fall in principle under EU state aid rules. (https://www.europarl.europa.eu/doceo/document/P-9-2022-001120_EN.html).
EU Commission Replies to Parliamentary Question on Implementation and Enforcement of EU Sanctions Against Russia: On May 30, 2022, Commissioner McGuinness provided a written reply to a question from a Member of the European Parliament. In its reply, the Commission notably recalls that it has set up a Freeze and Seize Task Force to ensure coordination of Member States activities in enforcing EU sanctions. (https://www.europarl.europa.eu/doceo/document/P-9-2022-001348_EN.html).
EU Launches Platform for Registration of Individuals Fleeing Ukraine: The European Commission launched a platform to register individuals fleeing Ukraine so they can enjoy their rights in all Member States while addressing instances of double or multiple registrations and limiting possible abuse. (https://ec.europa.eu/commission/presscorner/detail/en/mex_22_3384).
Tourism-Heavy Countries Brace for Summer Without Russian Tourists: On Tuesday, Al Jazeera profiled the tourism industries in Greece, Cyprus, and Turkey, popular destinations for Russian tourists that are now more difficult to access due to Russian visa restrictions. Hoteliers in Greece saw a limited drop in bookings, saying that UK tourists have largely replaced Russian tourists. Turkish authorities were less optimistic, saying that reduced purchasing power by Russian tourists would lead to $3-4 billion in losses in tourism revenue. Cypriot representatives focused on secondary effects of lost tourism, noting heavy investment in the Cypriot economy by Russians. (https://www.aljazeera.com/news/2022/5/31/tourist-destinations-gear-up-for-summer-without-russian-visitors).
Deal Reached on Russian Oil Embargo and Sixth Sanctions Package: On Monday night, European Council President Charles Michel tweeted that the Council had reached a deal to ban Russian oil imports to the EU. The move will immediately cover 2/3 of Russian oil imports to the EU. He added that the new package will include a de-Swifting of Sberbank, a ban on three Russian state owned broadcasters, and sanctions on individuals responsible for war crimes in Ukraine. Though full details of the deal are not clear, Michel’s tweet likely refers to a carveout from the ban on Russian oil imports for oil transported through pipelines, which represents 30% of EU imports. Hungarian Prime Minister Viktor Orban, said the idea was “not bad,” but wants insurance from the EU in case anything happens to the pipeline delivering oil to Hungary. It is unclear if EU leaders will adopt the text as proposed during the European summit (ending on Tuesday) or leave the issue entirely to the Council of Ministers.(https://twitter.com/eucopresident/status/1531391899218608133?cxt=HHwWioCwzbK0zMAqAAAA; https://www.politico.eu/article/eu-moves-step-closer-to-deal-on-russian-oil-embargo/).
EU to Consider Ways to Bypass Russian Food Export Blockade: The European Council is said to be discussing the consequences related to the difficulties in exporting food commodities. EU diplomats mentioned to Euractiv that the Council wishes to tackle the spillover effect in the Maghreb countries and in the Middle East. EU leaders are considering all available ways including a naval mission to escort cargo ships, but the lifting of the sanctions is off of the table. (https://www.euractiv.com/section/agriculture-food/news/eu-leaders-to-consider-all-available-ways-to-bypass-russian-food-export-blockade/).
Gazprom Suspends Shipments to Dutch Trader GasTerra: On Monday, GasTerra, which buys and trades energy products on behalf of the Dutch government, and Gazprom announced that the Russian gas company will no longer ship natural gas to GasTerra beginning on May 31, because the company refuses to pay for its shipments in rubles. The Dutch government stated that it had contracted elsewhere to make up for the gap in gas supply, and Gazprom stated that the suspension will continue until GasTerra pays in rubles. (https://www.reuters.com/business/energy/gazprom-suspends-gas-deliveries-dutch-trader-gasterra-2022-05-30/).
French Foreign Minister Demands Probe into French Journalist Death in Eastern Ukraine: French Foreign Minister Catherine Colonna called for an immediate and transparent inquiry into the circumstances of the death of a French journalist in Ukraine. The newly appointed Foreign Minister was visiting Kyiv when the death of the journalist was reported. (https://www.france24.com/en/europe/20220530-live-eu-to-pledge-support-for-ukraine-but-new-russia-sanctions-not-ready-yet).
EU Sanctions Against Russia Challenged Before EU Court: An action for annulment against the Decision and Regulation imposing sanctions in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine was published in the Official Journal of the European Union by a complainant under the name “OT”. The sanctions are only challenged as far as they apply to the applicant. 7 pleas were raised before the General Court of the European Union. (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:62022TN0193&from=EN).
EU, Ukraine Foreign Ministers Hold Call Sunday: EU Foreign Policy Chief Josep Borell and Ukrainian Foreign Minister Dmytro Kuleba held a call on Sunday, including a discussion on the “urgency to advance on sanctions” and “how to support export of agricultural products from Ukraine and impact of Russian aggression on global food security.” (https://www.ukrinform.net/rubric-polytics/3495295-borrell-kuleba-discuss-expansion-of-sanctions-pressure-on-russia.html).
Deal Reached on Russian Oil Embargo and Sixth Sanctions Package: On Monday night, European Council President Charles Michel tweeted that the Council had reached a deal to ban Russian oil imports to the EU. The move will immediately cover 2/3 of Russian oil imports to the EU. He added that the new package will include a de-Swifting of Sberbank, a ban on three Russian state owned broadcasters, and sanctions on individuals responsible for war crimes in Ukraine. Though full details of the deal are not clear, Michel’s tweet likely refers to a carveout from the ban on Russian oil imports for oil transported through pipelines, which represents 30% of EU imports. Hungarian Prime Minister Viktor Orban, said the idea was “not bad,” but wants insurance from the EU in case anything happens to the pipeline delivering oil to Hungary. It is unclear if EU leaders will adopt the text as proposed during the European summit (ending on Tuesday) or leave the issue entirely to the Council of Ministers.(https://twitter.com/eucopresident/status/1531391899218608133?cxt=HHwWioCwzbK0zMAqAAAA; https://www.politico.eu/article/eu-moves-step-closer-to-deal-on-russian-oil-embargo/).
German Economy Minister Fears European Unity on Russia “Starting to Crumble”:Speaking at a news conference on Sunday, German Economy Minister Robert Habeck stated, “After Russia’s attack on Ukraine, we saw what can happen when Europe stands united. With a view to the summit tomorrow, let’s hope it continues like this. But it is already starting to crumble and crumble again.” The Minister’s remarks come as the sixth EU sanctions package has stalled ov