The Sanctions Law: All leading Russian businessmen and their relatives can now fall under EU sanctions

The Council of the European Union has expanded the criteria for imposing blocking sanctions against Russian business. According to the Telegram channel The Sanctions Law, the new criterion came into force on June 7. Now restrictions can be introduced against any businessmen and organizations working in the most profitable sectors of the Russian economy, as well as against family members of leading Russian businessmen.

A corresponding amendment is made to sub. “g” paragraph 1 of Art. 3 of the EU Council Regulation on restrictive measures against actions that undermine or endanger the territorial integrity, sovereignty and independence of Ukraine. This paragraph prescribes the circle of persons and organizations that may be subject to sanctions in connection with the situation in Ukraine.

Previously, the document referred simply to “leading entrepreneurs”, legal entities, structures or organizations involved in sectors of the economy that provide a significant source of income to the authorities of the Russian Federation. Now, the amendment has clarified and expanded this paragraph to include “leading” entrepreneurs operating in Russia, their immediate family members or other individuals who benefit from them, as well as entrepreneurs, legal entities, organizations and bodies involved in sectors of the economy that provide a significant source of income for government of Russia.

The Council of the EU, explaining the need for such an innovation, indicated that between the Russian government and its leading businessmen there is a “connection through mutual benefit and support.” Therefore, the criteria for inclusion in the sanctions list should include “leading entrepreneurs working in any sector of the Russian economy.”