Authored by our Global Sanctions Team

On 2 March 2022, the EU published a wide-ranging package of new sanctions against Belarus in response to its involvement in Ukraine. The existing restrictions on dual-use items, potash, tobacco-related and mineral products have been expanded, and a full import ban now applies for wood, cement and steel products, rubber tyres and a wide range of machinery. Previous "grandfathering" clauses allowing the execution of prior contracts involving restricted trade, disbursements under existing loans to listed banks, and the provision of (re-)insurance services to certain parties no longer apply. The EU has also added more Belarusian parties to its asset freeze list.

Effective on 3 March 2022, the existing restrictions on supplies of dual-use items and related services have been expanded to reflect those imposed on Russia,2 while those on trade in potash, mineral and tobacco products have also been tightened.

Also effective from 3 March 2022, import/purchase and transport restrictions now apply to the following products, meaning they cannot be directly or indirectly imported, purchased, or transported, if originating in Belarus or exported from Belarus. Related technical assistance, brokering, financing or financial assistance (including financial derivatives and (re-)insurance are also prohibited. Contracts concluded before 2 March 2022 (and ancillary contracts) can only be executed until 4 June 2022:

From 3 March 2022, the capital market sanctions in place with respect to the Republic of Belarus, its public bodies, and five banks12 have been tightened. Drawdowns or disbursements under pre-25 June 2021 contracts are no longer permitted. The provision of insurance or re-insurance to the Belarus Government, its public bodies or natural legal persons acting on their behalf or at their direction under pre-25 June 2021 contracts is now prohibited.13

In recent days, the EU has expanded its asset freeze list to include more Belarusian nationals.14 All funds and economic resources in the EU belonging to or controlled by these listed parties must now be frozen. Furthermore, no funds or economic resources may be made available – directly or indirectly (e.g., through companies owned or controlled by them) – to or for their benefit, unless authorized or exempt.

1 See Regulation 2022/335, available here, amending Regulation 765/2006, latest consolidated version available here, not yet reflecting recent amendments of Regulation 2022/212, available here. 2 See our alert here. 3 Previously, the ban only targeted military end-use and military end-users. 4 See new Annex Va. 5 See revised Annex VI. 6 See revised Annex VII. 7 See new Annex X, which covers the entire Chapter 44 of the EU Combined Nomenclature. 8 See new Annex XI, which covers tariff headings 2523 and 6810. 9 See new Annex XII, which covers the entire Chapters 72 and 72 of the Combined Nomenclature. 10 See new Annex XIII, only containing tariff heading 4011 at this stage. 11 See new Annex XIV, containing numerous headings of Chapters 84 and 85 of the Combined Nomenclature. 12 See Annex IX. 13 The existing exemption for the provision of compulsory or third party liability insurance for risks situated in the EU or provision of insurance to Belarusian diplomatic/consular missions in the EU remains in place. 14 See Council Implementing Regulations 2022/332 here and 2022/353.

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