On June 23, 2022, the UK government adopted its latest package of trade sanctions measures against Russia in response to its continued military aggression in Ukraine.  The new sanctions measures were implemented pursuant to The Russia (Sanctions) (EU Exit) (Amendment) (No. 10) Regulations 2022 (“Russia Regulations Amendment No. 10”), which introduce a tranche of new trade sanctions, as well as adding new items to various existing restrictions and expanding existing prohibitions on military goods and technology to the non-government controlled Ukrainian territory.  Additionally, the UK government has this week updated its guidance on the aviation and space goods and technology insurance ban.

For more information on how these developments could impact your organization, contact the author of this post, Alexandra Melia, in Steptoe’s Economic Sanctions team in London.

For additional resources can be found on Steptoe’s “Sanctions against Russia: Implications for Business and International Trade” page.

New Trade Sanctions

The Russia Regulations Amendment No. 10 have introduced a new tranche of trade sanctions measures, which includes bans on:

  • the export, supply, delivery and making available to Russia and non-government controlled Ukrainian territory of interception and monitoring and internal repression goods and technology (as specified in Part 2 and Part 3, respectively, of Schedule 3C) as well as the transfer of such technology. The provision of related services also is prohibited, including interception and monitoring services;
  • the export, supply, delivery and making available to Russia and non-government controlled Ukrainian territory of goods relating to chemical and biological weapons (as specified in Part 4 of Schedule 3C), with a carve out for medicinal products and medical devices. The provision of related services also is prohibited;
  • the export, supply, delivery and making available of maritime goods and technology (as specified in in Chapter 4 (Navigation Equipment) and Chapter 5 (Radio-Communication Equipment) of Annex 1 of the Merchant Shipping Notice 1874) for placing on board a Russian-flagged vessel and transfer of maritime technology to a Russian-flagged vessel;
  • the export to or for use in Russia, making available in Russia, or to a person connected with Russia, of Sterling or EU denominated banknotes;
  • the provision of technical assistance, financial services or brokering services relating to iron and steel products;
  • the export to or for use in Russia of jet fuel and fuel additives (as specified under the relevant heading in Part 8 of Schedule 2A), as well as the provision of related services;
  • the import, acquisition or supply and delivery of revenue generating goods (as specified in Schedule 3D) that originate in or are consigned from Russia, and the provision of related services; and
  • the provision of services relating to iron and steel imports.

Addition of Products to Existing Trade Sanctions Prohibitions

The Russia Regulations Amendment No. 10 also has added new products to existing trade sanctions prohibitions on:

  • critical industry goods and technology;
  • oil refining goods and technology (including certain cold boxes, exchangers, pumps and process units for use in the LNG process); and
  • energy-related goods (including hydraulic fracturing items and high pressure pumps).

Extension of Certain Existing Russia Prohibitions to Non-government Controlled Ukrainian Territory

Finally, The Russia Regulations Amendment No. 10 has expanded the existing prohibitions on exporting, supplying, delivering and making available military goods and technology, and transferring military technology, to apply to non-government controlled Ukrainian territory as well as Russia.  The provision of related services also is prohibited.

New Guidance Published on Aviation and Space Goods Insurance Ban

On June 22, 2022, the UK government revised its statutory guidance on the UK’s Russia sanctions regime and, in particular, its guidance in relation to the prohibition on providing insurance and reinsurance services in relation to certain specified aviation and space goods and technology.

The revised guidance clarifies that the prohibition would not apply when:

  • the insurance in question is for the benefit of the non-Russian owner of the goods/technology, rather than the user or operator of such goods/technology; or
  • the items remain in Russia as the result of the termination of a lease and against the lessor’s will, or are being flown out of Russia in the process of being returned to their owner.