Extension of the EU sanctions against the Republic of Belarus

The EU Council Decision (CFSP) 2024/1864 dd. 29.06.2024, introduced new restrictive measures against the Republic of Belarus (the RB). They partially duplicate the previously introduced measures against Russia and include the extension of the export ban and expansion of the list of prohibited exports of goods and technologies. The restrictive measures apply to transactions / agreements with any natural or legal persons of the RB, organisations or bodies of the RB, as well as to contracts concluded for the purpose of using export prohibited goods and technologies in Belarus.

Ban on exports and transit

The existing ban on the export of dual-use goods and advanced technologies has been extended. The list includes goods that "could contribute to the enhancement of Belarussian industrial capacities". The ban on the transit of these goods and technologies through the territory of the RB has been introduced.

For the execution of contracts concluded before 01.07.2024, the ban will come into force from 02.10.2024, except for goods falling under CN codes 2602 and 8708 99, for which, provided the contract is concluded before 01.07.2024, the ban will come into force from 02.08.2024 and 02.01.2025 respectively.

Exports of goods and technologies suited for use in oil refining and natural gas liquefaction, and exports of maritime navigation goods and technologies are prohibited.

A ban on the export of luxury goods from the EU (irrespective of their origin) with a value exceeding EUR 300 per unit, as set out in the Annex, has been introduced.

Ban on imports 

The import ban applies to gold, diamonds or products incorporating diamonds (under the Annex) originating in the RB and exported to the EU or any third country after 01.07.2024. The ban applies to non-industrial natural and synthetic diamonds, as well as diamond jewellery.

Under the Annex, imports of minerals and crude oil are prohibited if they originate in the RB or are exported from there, as well as imports of goods that allow the RB to diversify its sources of income, including coal and other products.

For contracts concluded before 01.07.2024 in respect of crude oil, there is a delay in the ban coming into force until 02.10.2024.

The ban does not affect the transit through the territory of Belarus of crude oil falling under CN code 2709 00, which is delivered by pipeline from Russia.

Ban on services provision

There is a ban on the provision of accounting, auditing, tax consulting, business consulting and public relations services to state bodies, corporations and agencies of the RB, as well as to persons acting on their behalf or at their direction.

Architectural and engineering services, IT consultancy services, legal advisory services, market research and opinion polling services, technical testing and analysis services, and advertising services have also been prohibited.

However, the prohibition does not apply to the provision of technical assistance related to goods exported to the RB, provided that the export of such goods is not restricted at the time the technical assistance is provided.

With regard to legal consultancy, a stipulation is made, according to which legal advice on non-contentious matters, including transactions, advice on the application of the law, participation on behalf of the client in negotiations, preparation and execution of legal documents are prohibited. The prohibition does not apply to representation, preparation of documents in proceedings before administrative bodies and courts.

For contracts entered into before 01.07.2024, the prohibition will come into force from 02.10.2024, by the same date the contracts must be terminated.

Transport

It is prohibited to transport goods by road in the EU by trailers and semi-trailers registered in Belarus, including when hauled by trucks registered outside Belarus.

Companies established in the EU, which are owned for 25% or more by individuals or legal entities resident in the RB, are also prohibited from transporting and transiting cargo within the EU.

The prohibition does not apply to road transport undertakings owned by Belarusian nationals who are also nationals of a Member State or who have a temporary or permanent residence permit in a Member State.

Energy sector

There is an explicit ban on participation, extension of participation, establishment of a joint venture with any legal entity of Belarus or any other third country operating in the energy sector of Belarus. All types of financing and investments are prohibited. 

Measures to prevent sanctions circumvention 

The concept of conscious and deliberate participation in activities, the purpose or result of which is to circumvent existing restrictions, has been expanded. The definition of such activities includes those activities that are not aimed at circumventing sanctions restrictions, but are carried out with the knowledge and intent that such participation may result in a violation of the established prohibitions.

In addition, EU parent companies have been required to make every effort to ensure that any legal person, organisation or body established outside the EU that they own or control does not engage in activities that violate the restrictive measures.

Exporters are obliged to contractually prohibit re-export to the RB (or for use in the RB) of sensitive goods and technologies listed in the Annexes to the Regulation, common high-priority goods.

EU companies that export common high-priority goods to third countries are required to implement due diligence mechanisms capable of identifying, assessing and mitigating the risks of exports to Belarus, and must ensure that their subsidiaries and controlled companies outside the EU comply with these requirements.

Member States have the power to impose liability for breach of the restrictions. When considering the application of a liability measure, voluntary disclosure of circumvention of the prohibitions will be a mitigating factor.