(1)

On 31 July 2014, the Council adopted Decision 2014/512/CFSP (1).

(2)

The Union remains unwavering in its support for Ukraine’s sovereignty and territorial integrity.

(3)

On 24 February 2022, the President of the Russian Federation announced a military operation in Ukraine and Russian armed forces began an attack on Ukraine. That attack is a blatant violation of the territorial integrity, sovereignty and independence of Ukraine.

(4)

In its conclusions of 24 February 2022, the European Council condemned in the strongest possible terms the Russian Federation’s unprovoked and unjustified military aggression against Ukraine. By its illegal military actions, the Russian Federation is grossly violating international law and the principles of the Charter of the United Nations (the ‘UN Charter’), and undermining European and global security and stability. The European Council called for the urgent preparation and adoption of a further individual and economic sanctions package.

(5)

In its conclusions of 23–24 June 2022, the European Council stated that work will continue on sanctions, including to strengthen implementation and prevent circumvention.

(6)

On 21 September 2022, notwithstanding numerous calls by the international community on Russia to immediately stop its military aggression against Ukraine, the Russian Federation decided to further escalate its aggression against Ukraine by supporting the organisation of illegal ‘referenda’ in the parts of the Donetsk, Kherson, Luhansk and Zaporizhzhia regions that are currently occupied by Russia. The Russian Federation also further escalated its aggression against Ukraine by announcing a mobilisation in the Russian Federation and by again threatening to use weapons of mass destruction.

(7)

On 28 September 2022, the High Representative of the Union for Foreign Affairs and Security Policy (the ‘High Representative’) issued a declaration on behalf of the Union condemning in the strongest possible terms the illegal sham ‘referenda’ conducted in parts of the Donetsk, Kherson, Luhansk and Zaporizhzhia regions of Ukraine currently and partially occupied by Russia. The High Representative also declared that the Union does not and will never recognise those illegal sham ‘referenda’ and their falsified outcome, nor any decision taken on the basis of that outcome, and urged all Members of the United Nations to do the same. By organising those illegal sham ‘referenda’, Russia aimed to change by force the internationally recognised borders of Ukraine, which constitutes a clear and serious breach of the UN Charter. The High Representative also indicated that all those involved in organising those illegal sham ‘referenda’ as well as those responsible for other violations of international law in Ukraine will be held accountable and that additional restrictive measures against Russia will be brought forward in this regard. The High Representative recalled that the Union remains unwavering in its support for Ukraine's independence, sovereignty and territorial integrity within its internationally recognised borders, and demands that Russia immediately, completely and unconditionally withdraw all of its troops and military equipment from the entire territory of Ukraine. The High Representative further declared that the Union and its Member States will continue to support Ukraine’s efforts to this end, as long as necessary.

(8)

On 30 September 2022, the members of the European Council adopted a statement in which they firmly rejected and unequivocally condemned the illegal annexation by Russia of Ukraine's Donetsk, Kherson, Luhansk and Zaporizhzhia regions. By wilfully undermining the rules-based international order and blatantly violating the fundamental rights of Ukraine to independence, sovereignty and territorial integrity, core principles as enshrined in the UN Charter and international law, Russia is putting global security at risk. The members of the European Council stated that they do not and will never recognise the illegal ‘referenda’ that Russia has engineered as a pretext for this further violation of Ukraine's independence, sovereignty and territorial integrity, nor their falsified and illegal results. They declared that they will never recognise that illegal annexation, that those decisions are null and void and cannot produce any legal effect whatsoever and that Crimea, Donetsk, Kherson, Luhansk and Zaporizhzhia are Ukraine. They called on all States and international organisations to unequivocally reject that illegal annexation and recalled that Ukraine is exercising its legitimate right to defend itself against the Russian aggression to regain full control of its territory and has the right to liberate occupied territories within its internationally recognised borders. The Members of the European Council stated that they will strengthen the Union's restrictive measures countering Russia's illegal actions and further increase pressure on Russia to end its war of aggression.

(9)

In view of the gravity of the situation it is appropriate to introduce further restrictive measures.

(10)

In particular, it is appropriate to expand the prohibition to engage in any transaction with certain Russian State-owned or State-controlled legal persons, entities or bodies by including a ban on Union nationals to hold any posts on the governing bodies of those legal persons, entities or bodies. It is also appropriate to add to the list of Russian State-owned or State-controlled entities that are subject to that transaction ban the Russian Maritime Register of Shipping, a 100 % State-owned entity which performs activities related to the classification and inspection, including in the field of security, of Russian and non-Russian ships and crafts. That addition prohibits the provision of any sort of economically valuable benefit to the Russian Maritime Register of Shipping. In this regard, it is also appropriate to require the withdrawal of authorisations granted by Member States to the Russian Maritime Register of Shipping under Directive 2005/65/EC (2), 2009/15/EC (3) or (EU) 2016/1629 (4) of the European Parliament and of the Council or Regulation (EC) No 725/2004 (5) of the European Parliament and of the Council.

To enable the Member States to effect such withdrawals in compliance with Regulation (EC) No 391/2009 of the European Parliament and of the Council (6) and Directive (EU) 2016/1629, it is also appropriate to withdraw the Union’s recognition of the Russian Maritime Register of Shipping. In addition, it is appropriate to extend the port access and lock ban in the territory of the Union to vessels certified by the Russian Maritime Register of Shipping.

(11)

Moreover, it is appropriate to remove the threshold for the existing prohibition on the provision of crypto-asset wallet, account or custody services to Russian persons and residents, thereby banning the provision of such services regardless of the total value of such crypto-assets.

(12)

It is also appropriate to extend the existing prohibition on the provision of certain services to the Russian Federation by banning the provision of architectural and engineering services as well as of IT consultancy services and legal advisory services. In line with the Central Products Classification as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No 77, CPC prov., 1991, ‘architectural and engineering services’ covers both architectural and engineering services as well as integrated engineering services, urban planning and landscape architectural services and engineering-related scientific and technical consulting services. ‘Engineering services’ does not cover technical assistance related to goods exported to Russia where their sale, supply, transfer or export is not prohibited at the time at which such technical assistance is provided. ‘IT consultancy services’ covers consultancy services related to the installation of computer hardware, including assistance services to the clients in the installation of computer hardware (i.e. physical equipment) and computer networks, and software implementation services, including all services involving consultancy services on, development of and implementation of software.

(13)

‘Legal advisory services’ covers: the provision of legal advice to customers in non-contentious matters, including commercial transactions, involving the application or interpretation of law; participation with or on behalf of clients in commercial transactions, negotiations and other dealings with third parties; and preparation, execution and verification of legal documents. ‘Legal advisory services’ does not include any representation, advice, preparation of documents or verification of documents in the context of legal representation services, namely in matters or proceedings before administrative agencies, courts or other duly constituted official tribunals, or in arbitral or mediation proceedings.

(14)

Furthermore, it is appropriate to specify that the prohibition to import, purchase or transport arms and related materiel of all types, including weapons and ammunition, military vehicles and equipment, paramilitary equipment, and spare parts therefor, from the Russian Federation applies to both direct and indirect import.

(15)

It is also appropriate to extend the list of restricted items which might contribute to the Russian Federation’s military and technological enhancement or to the development of its defence and security sector, by including in that list certain chemical substances, nerve agents and goods which have no practical use other than for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment, or which could be used for those purposes. Goods subject to that prohibition are also covered by Regulation (EU) 2019/125 of the European Parliament and of the Council (7). In this context, Decision 2014/512/CFSP is to be treated as lex specialis and therefore, in the event of a conflict, takes precedence over Regulation (EU) 2019/125.

(16)

It is also appropriate to prohibit the sale, supply, transfer or export of firearms, their parts and essential components and ammunition to any natural or legal person, entity or body in the Russian Federation, or for use in the Russian Federation. Goods subject to that prohibition are also covered by Regulation (EU) No 258/2012 of the European Parliament and of the Council (8). In this context, Decision 2014/512/CFSP is to be treated as lex specialis and therefore, in the event of a conflict, takes precedence over Regulation (EU) No 258/2012.

(17)

It is also appropriate to extend the import ban on steel products that either originate in the Russian Federation or have been exported from it, as well as to impose import restrictions on additional items that generate significant revenues for the Russian Federation. That prohibition applies to goods that originate in the Russian Federation or are exported from it and includes such items as wood pulp and paper, certain elements used in the jewellery industry such as stones and precious metals, certain machinery and chemical items, cigarettes, plastics and finished chemical products such as cosmetics. It is also appropriate to extend the export prohibition by adding new items to the list of goods which could contribute to the enhancement of Russian industrial capacities, as well as to impose restrictions on the sale, supply, transfer or export of additional goods used in the aviation sector.

(18)

The Union is committed to avoiding threats to nuclear safety and security. Consequently, none of the measures in this Decision seek to undermine the safety of civil nuclear capabilities or civil nuclear cooperation, in particular in the field of research and development, or to undermine the planning, construction and engineering, commissioning, maintenance or fuel supply of newly built nuclear projects.

(19)

In addition to the existing prohibitions related to the provision of services for the maritime transport of crude oil and certain petroleum products to third countries, it is appropriate to further prohibit the maritime transport of such goods to third countries. That prohibition should be conditional upon the Council introducing a pre-established price cap agreed by the Price Cap Coalition.

(20)

It is also appropriate to introduce an exemption from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate in or are exported from Russia, purchased at or below the price cap. That exemption should mitigate adverse consequences on energy supply to third countries and reduce price surges driven by extraordinary market conditions, while limiting Russian oil revenues. That exemption should be time-limited, in order to ensure that it remains appropriate, and can be renewed, if justified by the third country’s energy security needs. The application to that exemption of the price cap mechanism would rely on an attestation process that would enable operators in the supply chain of seaborne Russian oil to demonstrate that it has been purchased at or below that price cap. The Commission, in close consultation with the Council, would issue guidance to specify the practical aspects of the price cap application, in order to facilitate uniform application and enable a level playing field in the Union and globally.

(21)

In deciding whether to introduce the price cap, the Council will take into account the effectiveness of the measure in terms of its expected results, international adherence to and informal alignment with the price cap mechanism, and its potential impact on the Union and its Member States. The Commission should fully support the Council in making the assessment as to whether to introduce the price cap, including by convening coordination meetings with the Member States and representatives of the affected industries. Following the entry into force of the first Council Decision making the price cap applicable, the Commission will continue to convene such meetings to assess, inter alia, potential circumvention practices of the price cap, such as deflagging of vessels, and their impact on the effectiveness of the price cap mechanism, and will propose appropriate solutions.

(22)

In order to ensure the uniform application of the price cap, the Council should swiftly update the price agreed in coordination with partner countries in the Price Cap Coalition. The price cap would not affect in any way the exceptions allowing certain Member States to continue importing crude oil and petroleum products from Russia due to their specific situation or to import seaborne crude oil from Russia if the supply of crude oil by pipeline from Russia is interrupted for reasons outside their control. Specific projects which are essential for the energy security of certain third countries may be exempted from the price cap.

(23)

In the event that a vessel under the flag of a third country has transported Russian crude oil or petroleum products purchased at a price above the price cap, it should be prohibited to provide technical assistance, brokering services, financing or financial assistance, including insurance, related to any transport in the future by that vessel of crude oil or petroleum products.

(24)

Further action by the Union is needed in order to implement certain measures.

(25)

Decision 2014/512/CFSP should therefore be amended accordingly,