EU Criminalizes Trade in Sanctioned Goods

Trade in sanctioned goods will be considered a criminal offense in all EU countries. The maximum sanction is five years in prison. The relevant directive was approved by the EU Council.
Now, all EU countries must recognize trade in sanctioned goods and assistance in circumventing the ban on entry to their territory for sanctioned persons as a criminal offense. They will also punish incitement to such an offense or assistance in its commission.

When the directive enters into force, the same penalty will be imposed for violations – imprisonment for up to 5 years if the offense involves assets worth more than EUR 100 thousand. Various measures are envisaged for companies, including monetary and non-monetary measures (e.g., revocation of authorizations, deprivation of the right to benefits, liquidation in court, fines, etc.)

What will be considered a violation of sanctions?

• providing funds or economic resources to or for the benefit of a sanctioned person or organization;
• Failure to freeze money or economic resources of a sanctioned person or organization;
• granting entry or transit permits to a sanctioned person;
• trade in goods or services, import, export, sale, purchase, transfer, transit or transportation of which is prohibited or restricted by sanctions, as well as the provision of brokerage or other services related to such goods;
• providing financial services or performing financial activities prohibited or restricted by sanctions;
• other ways of circumventing the sanctions regime (for example, by concealing beneficiaries).

The Directive will enter into force 20 days after its publication in the Official Journal of the European Union. Member states will have 12 months to implement its provisions into national legislation.

Tags: sanctions, Russia, EU