EU Law and Practice Contributed by: Edward Borovikov, Laurens Engelen, Xiaoyi Tang and Semen Medvedkov, Dentons
and the EU Global Human Rights Sanctions Regime – for example, the recent listings of entities and indi - viduals linked to extremist Israeli settler violence. 1.3 Key Industries The sectors most impacted by EU sanctions regula - tions vary depending on the specific sanctions regime. However, some sectors tend to be more frequently tar - geted than others. The following sectors are currently targeted by the EU in its Russia Sanctions Regulation. • Financial sector and services: restrictions on transactions with banks, insurance companies and investment institutions to limit their access to inter - national capital and financial resources. • Energy: restrictions on fossil fuel imports into the EU or limitations on the technology needed for energy production. • Transport: sanctions are targeting airlines, shipping companies and logistics firms, as well as restricting access to the EU market or transit through the EU. • Technology: restrictions on technology exports to limit access to the advanced technologies needed for various industries and to impede economic development. • Defence: sanctions may target specific military equipment or technology, limiting the ability to modernise military capabilities. In addition, the EU has a strict framework that controls the exportation of goods that have a potential military application (so-called dual-use goods). 1.4 Overview 1.4.1 Types of Sanctions The EU has a toolbox of “restrictive measures” (sanc - tions) that it can use in several ways, including the following: • implementation of UN resolutions – when the UN Security Council imposes sanctions, the EU can translate them into its own laws and enforce them within its member states; • strengthening existing UN sanctions – the EU can go beyond UN measures by adding stricter sanc - tions of its own; and • acting autonomously – the EU can develop and implement its own sanctions regimes to address specific situations.
The EU primarily adopts targeted and sectoral sanc - tions. Targeted sanctions prohibit all transactions or other dealings with specific individuals and entities. They virtually always include asset freezes and travel bans. Sectoral sanctions are generally both broader and narrower than targeted sanctions. They are broader in the sense that they provide restrictions on trans - actions with a wider category of targets. They are narrower, however, in that they tend to only prohibit certain types of dealings. Sectoral sanctions may also broadly prohibit dealing in any military or dual-use goods. 1.4.2 Scope of Sanctions EU sanctions apply: • within the jurisdiction (territory) of the EU; • to EU nationals in any location; • to companies and organisations incorporated under the law of a member state – including branches of EU companies in third countries; and • on board aircraft or vessels under member states’ jurisdiction. Consequently, they must be complied with by: • any individual within the territory of the EU; • any individual on board any aircraft or any vessel under the jurisdiction of an EU member state; • any national of an EU member state, wherever located; • any legal entity incorporated or established under the laws of an EU member state, wherever located; and • any individual or legal entity in respect of any busi - ness done in whole or in part within the EU. These persons and entities are commonly referred to as “EU persons”. 1.4.3 Domestic and/or Supranational Measures The EU implements sanctions mandated by the UN Security Council as well as its own autonomous sanc - tions regimes, while it may also – in a hybrid manner – autonomously build on regimes that are implemented based on UN sanctions regimes.
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