EU Law and Practice Contributed by: Edward Borovikov, Laurens Engelen, Xiaoyi Tang and Semen Medvedkov, Dentons
contained in Article 12 of Council Regulation (EU) No 833/2014 has been expanded, with the following: “It shall be prohibited to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent prohibitions in this Regulation, includ - ing by participating in such activities without deliber - ately seeking that object or effect but being aware that the participation may have that object or effect and accepting that possibility.” Arguably, this update should make EU persons addi - tionally cautious. Relatedly, the new Article 8a of Council Regulation (EU) No 833/2014 requires EU persons (both individu - als and legal entities) to use their best efforts to ensure that third-country entities that they own or control do not “undermine” EU sectoral sanctions against Rus - sia. Articles 12f to 12gb of Council Regulation (EU) No 833/2014 introduced a suite of circumvention restric - tions aimed at preventing the evasion of EU sanctions against Russia through third-country operators and intermediaries. These provisions prohibit persons and entities from participating in arrangements, whether directly or indirectly, that are designed to circumvent the prohibitions established under that Regulation, including by routing transactions or asset transfers through third parties or jurisdictions outside the EU. Operators subject to Regulation (EU) No 833/2014 are also subject to enhanced due diligence obligations and are required to ensure that contractual counter - parties undertake not to facilitate circumvention, with particular emphasis placed on the role of professional intermediaries, financial institutions, and traders in The EU response to the war in Ukraine will likely domi - nate its sanctions agenda in the coming year. Further tightening of existing sanctions and new packages tar - geting the Russian economy, individuals and entities are anticipated, with a particular focus on maintaining and expanding restrictions on the energy sector, clos - ing remaining channels for Russia‑related cryptocur - rency and digital‑asset transactions, and broadening closing evasion loopholes. 3.2 Future Developments
measures directed at Russian financial institutions and payment channels. The Council of the EU and the Commission will con - tinue prioritising sanction enforcement and focusing on anti-circumvention policies. This could involve tightening current loopholes, such as introducing personal sanctions against individuals and companies from third countries that facilitate the circumvention of sanctions against Russia, strengthening enforcement mechanisms at the level of the EU member states and co-operating with international allies. Global developments or internal political shifts within the EU could lead to unforeseen sanctions targets or changes in the regimes. Individuals or legal entities subject to EU sanctions have the right to contest their designation. The ini - tial step normally involves submitting a request for de-listing to the Council of the EU and/or the Euro - pean External Action Service (EEAS). This request should be accompanied by supporting evidence that challenges the reasons for designation. The Council reviews the submission and determines whether to uphold or revoke the designation. Another recourse that might be explored in paral - lel with the application to the Council is to bring the matter before the CJEU courts in Luxembourg. The General Court is the first instance where one can file a case, and decisions made there can be appealed at the Court of Justice. Legal challenges have often resulted in the annulment of sanctions, with the courts citing various grounds such as lack of sufficient evi - dence, breaches of due process, imprecise justifica - tions, factual inaccuracies or infringement of the rights of the defence. It is important to note that the process is governed by strict deadlines and follows a detailed legal proce - dure. Moreover, legal representation of a sanctioned individual or entity, or the receipt of funds from frozen assets, may necessitate obtaining a licence from the 4. Delisting Challenges 4.1 Process
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