Page 52 - RusRPTAug24

52 I Eastern Europe bne August 2024
also free up a portion of the European market for Ukrainian grain imports to replace Russian, which has already caused overstocking and sparked protests among European farmers.
The new tariffs, described by European Commission Vice President Valdis Dombrovskis as "prohibitively high," effectively ban the import of grain, sunflower seed, and fodder crops from Russia and Belarus by making their import economically unfeasible. The proposal for these tariffs was introduced on March 22.
The Council noted that these tariffs do not apply to the transit of grain to third countries through European ports.
While the EU's strategy aims to support Ukraine's agricultural exports and stabilize local markets, it also risks further straining port capacities and the broader food supply chain within Europe. The full impact of these tariffs on both the European and Russian agricultural sectors remains to be seen.
EU Belarusian sanctions in detail
The Council of Europe details of the measures include:
Trade
The Council is extending the export ban on dual-use/advanced goods and technologies, as well as introducing further export restrictions on goods which could contribute to the enhancement of Belarusian industrial capacities.
Further restrictions are also introduced on exports to Belarus of maritime navigation goods and technologies, and luxury goods.
Regarding imports, it will be prohibited to import directly or indirectly, purchase or transfer namely of gold and diamonds from Belarus, as well as helium, coal
and mineral products including
crude oil. The latter measure will be complemented by a new export ban on goods and technologies suitable for use in oil refining and the liquefaction of natural gas.
Services
The Council is prohibiting the provision of certain services to
Belarus, its government, public bodies, corporations or agencies and to any natural or legal person acting on behalf or at their direction:
• accounting services, auditing services, including statutory audit, bookkeeping services, tax consulting services, business and management consulting services, and public relations services;
• architectural and engineering services, as well as IT consultancy services and legal advisory services;
• advertising, market research and public opinion polling services, as well as product testing and technical inspection services.
In order to minimise the risk of circumvention, the EU will prohibit
the transit via the territory of Belarus
of dual-use goods and technologies, goods and technologies which might contribute to Belarus’s military and technological enhancement or to the development of its defence and security sector, goods which could contribute
to the enhancement of Belarusian industrial capacities, goods and technologies for use in the aviation or space industry, as well as arms exported from the EU.
In addition, in order to help counter the re-exportation of battlefield
goods found in Ukraine or critical to the development of Russian military systems, it was decided that EU operators selling such battlefield goods to third countries will need to implement due diligence mechanisms
“Further restrictions are also introduced on exports to Belarus of maritime navigation goods and technologies, and luxury goods”
Transport
The Council is broadening the prohibition on the transport of goods by road within the territory of the EU, by trailers and semi-trailers registered in Belarus, including when hauled by trucks registered outside Belarus.
In order to minimise the risk of circumvention, EU operators which are owned for 25% or more by a Belarusian natural or legal person, should be prohibited from becoming a road transport undertaking or from transporting goods by road in the Union, including in transit.
Anti-circumvention
Today’s decision requires that EU export- ers insert in their future contract the so-called 'no-Belarus clause', through which they contractually prohibit the re- exportation to Belarus or re-exportation for use in Belarus of sensitive goods and technology, battlefield goods, firearms and ammunition.
capable of identifying and assessing risks of re-exportation to Russia and mitigating them.
Lastly, EU parent companies will be required to undertake their best efforts to ensure that their third-country subsidiaries do not take part in any activities resulting in an outcome that the sanctions seek to prevent.
Protection of EU operators
The package also includes measures
to allow EU operators to claim compensation from damages caused by Belarusian individuals and companies due to sanctions implementation
and expropriation, provided that the member state national or company concerned does not have effective access to remedies, for example under the relevant bilateral investment treaty.
The relevant legal acts will be published in the Official Journal of the EU.
www.bne.eu