On Monday 27 May 2024, the EU established a new sanctions framework for the implementation of restrictive measures against those responsible for serious human rights violations or abuses, for the accelerating and systematic repression of civil society and democratic opposition, and for undermining democracy and the rule of law in Russia.
As set out in Council Decision (CFSP) 2024/1484 and Council Regulation (EU) 2024/1485 (“Russia Human Rights Regulation”).
In its press release (here), the European Commission stated that the adoption of this new sanctions regime is part of the EU’s response to accelerating and systematic repression in Russia. The European Commission went on to express that it remains deeply concerned about the continuing deterioration of the human rights situation in Russia and strongly condemns the expansion of restrictive legislation, the systematic repression against civil society and human rights defenders and the crackdown on independent media, individual journalists and media workers, political opposition members and other critical voices throughout Russia and overseas.
The introduction of the Russia Human Rights Regulation was in response to a call from the European Council in March 2024, following outrage at the in-custody death of Alexei Navalny, Russian opposition leader and political prisoner.
Expands current Human Rights sanctions
Prior to the implementation of the Russia Human Rights Regulation, the EU was responding to the continued deterioration of the human rights situation in Russia by leveraging the existing EU Global Human Rights Sanctions Regulation (Regulation (EU) 2020/1998) in order to impose restrictive measures against perpetrators or those connected to such violations. The introduction of the Russia Human Rights Regulation thus supplements existing EU Global Human Rights Sanctions Regulation.
The new Russia Human Rights Regulation
By way of summary, the Russia Human Rights Regulation:
- Imposes asset freezes and travel bans on those persons listed in Annex IV (as well as any entities which are owned for more than 50% or controlled by such listed persons). Pursuant to the designation criteria, persons who are responsible for serious violations or abuses of human rights or the repression of civil society and democratic opposition, or whose activities otherwise seriously undermine democracy or the rule of law in Russia, as well as any persons providing financial, technical or material support or are otherwise associated with such persons, are liable to listing. Following the introduction of the Russia Human Rights Regulation, 20 actors have been listed under the new designation criteria, including the central authority responsible for overseeing the Russian prison system and 19 individuals who were involved in the imprisonment of Alexei Navalny and political sentencings of Oleg Orlov and Alexandra Skochilenko.
- Introduces trade restrictions on selling, supplying, transferring or exporting certain equipment to or for use in Russia which might be used for internal repression as listed in Annex I, as well as any equipment, technology or software intended for use in information security and the monitoring or interception of telecommunications which could be misused for internal repression, as listed in Annex II. The provision of associated services – being technical assistance, brokering services, financing or financial assistance – is also prohibited.
- Introduces a ‘catch all’ prohibition on the supply of any equipment, technology or software where such items are intended, in their entirety or in part, for use in connection with internal repression in Russia. To the extent an operator becomes aware of these circumstances, this provision imposes an obligation to notify the competent authorities.
Key takeaways
The impact to businesses is likely to be most felt as a result of the imposition of the trade-related restrictions. The recitals of the Russia Human Rights Regulation, as well as the Council Decision, acknowledge that there might well be overlaps between items which are controlled under the EU Russia Regulation (Regulation (EU) 833/2014) and the new Russia Human Rights Regulation.
It will therefore be important for organisations to assess to what extent any products or activities might also be caught under the new Russia Human Rights Regulation, even in circumstances where they might otherwise be operating under an exception for the purposes of the EU Russia Regulation, as a licence might now be required.
In addition, the new ‘catch all’ restriction demonstrates the importance of organisations carrying sufficient supply chain due diligence, particularly as the new Russia Human Rights Regulation includes a defence to this provision where the operator has no reason to suspect that the items were, in their entirety or part, for use in connection with internal repression in Russia.
If you have questions related to the above, please contact a member of our Trade team.
