In light of geopolitical tensions and global uncertainties, the European Council has adopted further restrictive measures against Russia: The no-Russia clause.
What obligations result from the new clause?
Include a contractual clause:
Companies are obliged to include a clause in their contracts prohibiting re-export to Russia and re-export for use in Russia when selling, supplying, transferring or exporting certain goods and technologies to third countries.
Applicabilty of the clause: The no-Russia clause applies to the sale of the following goods and technologies:
- Goods and technologies listed in Annexes XI, XX and XXXV of Regulation 833/2014.
- Firearms and ammunition according to the list in Annex I of EU Regulation 258/2014
In order to fulfill the obligation, the contract with the partner from a third country must contain appropriate remedial measures in the event of a breach of a contractual obligation.
The responsible authority must also be informed in the event of a violation by the partner.
Far-reaching impacts
Overall, the twelfth sanctions package covers a wide range of topics. The new clause in particular is likely to trigger a need for action, as the scope of application covers all third countries with the exception of a few partner countries.
The amendment requires a careful review of contracts, business relationships and other business activities in order to identify and eliminate potential risks and not violate the provisions of the regulation.
Conclusion
The clause marks a significant step in EU policy towards Russia and signals that the European Union is prepared to take decisive action against violations of international norms and principles.
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Legal Compliance Expert
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