On 18 December 2023, the European Union (“EU”) adopted its 12th package of sanctions targeting Russia, in continued response to the Russian invasion of Ukraine (“the Package”). A timeline of the previous 11 sanctions packages can be found here.

The Package introduces a number of new measures including:

  • Intra-group services: An updated ban on intra-group services has been introduced, such that services including legal, finance and IT will not be able to be provided by an EU entity to its Russian subsidiary, unless a licence is obtained from the local EU Member State authority. This updated ban comes into effect on 20 June 2024, with a six-month transition period and could have far-reaching implications for business operations.
  • Counter-sanctions response: Russia previously issued counter-sanctions which allowed them to take control of Western-owned entities based in Russia. The Package allows the European Commission to freeze the assets of such Russian entities, as well as the buyers and board members of these entities. Consensual sales will not be affected.
  • Trade sanctions: Further trade sanctions have been introduced, including a new EU import ban on Russian diamonds, as well as raw materials for steel production, processed aluminium products and other metal goods. There is also a new prohibition on providing enterprise and design-related software to the Russian government or Russian companies.
  • Anti-circumvention: In order to limit circumvention,Russian citizens are prohibited from owning, controlling or holding positions within the governing structures of organisations offering certain cryptoasset services to Russian individuals / residents.
  • Notification requirements: The Package introduces a new measure that will require the notification of certain transfers of funds out of the EU, from EU entities directly / indirectly owned by more than 40% by Russians or entities established in Russia.
  • Additional designated persons / entities: 29 new entities have been added to the list of those directly supporting Russia’s military efforts against Ukraine. These entities will now be subject to tighter export restrictions. Over 140 new additional individuals and entities are also subject to asset freezes.

At this stage there is no end to the war in sight, so further sanctions should be expected from Western governments.  

For further information, please reach out to UKReg@proskauer.com.

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Photo of John Verwey John Verwey

John Verwey is a partner in the Private Funds Group. John advises on a wide number of regulatory issues at a national UK and European level, including firm authorisations, appointed representative arrangements, change in control, market abuse. He represents a variety of clients…

John Verwey is a partner in the Private Funds Group. John advises on a wide number of regulatory issues at a national UK and European level, including firm authorisations, appointed representative arrangements, change in control, market abuse. He represents a variety of clients that range from small start-up fund managers to established global fund advisers and managers.

A particular area of focus for John is Alternative Investment Fund Managers Directive (AIFMD) and Markets in Financial Instruments Directive II (MiFID II).  This includes advising on pre-marketing and marketing strategies for fund managers, advising on the Level One and Lever Two requirements under AIFMD and implementing UK rules and legislation, and advising on the organizational and conduct of business requirements under MiFID II.

Photo of Amar Unadkat Amar Unadkat

Amar Unadkat is a special regulatory counsel in the Corporate Department and a member of the Private Funds Group.

Amar advises on a variety of financial services regulatory and compliance matters both from a UK and European perspective. Amar regularly advises his clients…

Amar Unadkat is a special regulatory counsel in the Corporate Department and a member of the Private Funds Group.

Amar advises on a variety of financial services regulatory and compliance matters both from a UK and European perspective. Amar regularly advises his clients on issues relating to the Alternative Investment Fund Managers Directive (“AIFMD”), the second Markets in Financial Instruments Directive (“MiFID II”), as well as the latest ESG developments. Amar also focusses on UK regulatory compliance matters, including the FCA’s change of control regime, the appointed representative regime and the Senior Managers & Certification Regime.

Amar’s clients include private equity firms, investment managers and advisers, firms in the FinTech space, wealth management businesses, banks and sovereign wealth funds.

Photo of Sulaiman Malik Sulaiman Malik

Sulaiman Malik is an associate in the Corporate Department and a member of the Private Funds Group.

Sulaiman advises clients on a range of UK and international financial regulation. He advises private equity funds, hedge funds, sovereign wealth funds and other asset managers…

Sulaiman Malik is an associate in the Corporate Department and a member of the Private Funds Group.

Sulaiman advises clients on a range of UK and international financial regulation. He advises private equity funds, hedge funds, sovereign wealth funds and other asset managers, as well as banks, FinTechs, broker-dealers and governments.

Prior to joining Proskauer, Sulaiman trained at Simmons & Simmons in London, where he was seconded to Brevan Howard. He has also spent time at the UK’s Ministry of Justice and as an adviser to the Mayor of Brisbane, in Australia.

Sulaiman is a passionate advocate for diversity and inclusion. He previously worked at Rare, a market-leading diversity consultancy, and provides pro bono legal advice to a range of community and civil rights organizations.