“The EU has imposed massive and unprecedented sanctions against Russia in response to Russia’s war of aggression against Ukraine”.
Since 2014, the EU has imposed economic sanctions on Russia for its actions in Donbas, linking their lifting to the implementation of the Minsk Agreements. In the absence of compliance, these sanctions have been extended biannually, effective until July 2024. Russian aggression against Ukraine in 2022 and the annexation of Ukrainian territories led the EU to intensify sanctions. In December 2023, a clause was added prohibiting EU exporters from re-exporting certain goods, including advanced technology and weaponry, to Russia to strengthen control over materials that could support Russia’s military effort. Sanctions include individual sanctions, economic sanctions and visa measures.
Individual sanctions target persons responsible for supporting, financing or executing actions that undermine the territorial integrity, sovereignty and independence of Ukraine or those who benefit from such actions. In addition to the above-mentioned individuals, some of the Russian entities to which software may not be distributed include the following: Banks and financial institutions, companies in the military and defence sectors, companies in the aviation, shipbuilding and machine-building sectors, armed forces, political parties, telecommunications companies, media outlets engaged in propaganda and disinformation…
The economic sanctions target the financial, trade, energy, transport, technology and defence sectors, with a range of restrictions on imports and exports from Russia. These sanctions target all Russian individuals and entities, as well as entities established in the EU that are subsidiaries of companies established in Russia. From June 2022, the EU has put in place a series of staggered bans on the provision of certain services to Russia or Russian citizens. This begins with restrictions on financial and consulting services, including accounting and public relations, and expands to bans on IT consulting, legal advice, and architectural and engineering services in October 2022. By December 2022, restrictions were added on advertising and market research, and finally, in December 2023, the supply of business management and industrial design software was banned. These measures cover all forms of IT services (consulting, development, engineering, etc.), and in particular those related to business management and industrial design.
The list of sanctioned goods covers a wide range including cutting-edge technology such as quantum computers, advanced semiconductors, electronic components and software; specific machinery and transportation equipment; essential goods and technology for petroleum refining; equipment, technology and services for the energy industry; and items for the aviation and space industry, including aircraft, engines, spare parts and jet fuel. Also sanctioned are products for maritime navigation and radio communication technology, dual-use goods such as drones and drone software, encryption devices, luxury goods such as cars, watches and jewellery, civilian firearms and their components, chemicals, lithium batteries, thermostats, business management, design and industrial manufacturing software, among others. This prohibition extends to the sale, supply, transfer, export and making available of software, including updates, whether in tangible or intangible form. EU operators must carry out appropriate due diligence to avoid engaging in circumvention of these sanctions, for example by selling through third countries.
- Across Legal therefore recommends that you review your software distribution conditions and sales protocols to comply with the EU sanctions list and demonstrate your commitment to international compliance and contribute to maintaining a responsible business environment.
- If you want to know more, particularly on IT controls, consult with Across Legal and our team of experts will provide detailed guidance on how these sanctions could affect you. In this way, we will help you develop strategies to mitigate risks and ensure that your operations remain within the applicable legal framework.
