American Club Circular No. 26/22 – European Union (EU) Sanctions – Exception/Waiver Issued on Carriage of Certain Russian Cargoes, Including Coal and Fertilizers – Update

2. Is the transfer of goods listed in Annexes XVII, XXI and XXII of Council Regulation 833/2014 by an EU company authorized when the goods are destined for a third country and do not transit through the territory of the Union? ?Last update: September 19, 2022
No. Articles 3g, 3i and 3j of Council Regulation 833/2014 prohibit the purchase, import or transfer, directly or indirectly, of the goods listed in Annexes XVII, XXI and XXII if they originate in Russia or are exported from Russia . The transfer ban applies regardless of the final destination of the goods, while the import ban applies by nature to goods circulating “in the Union”. Provided that the transfer falls within the scope of Article 13 of Council Regulation 833/2014, it does not matter whether the goods are destined for the EU or not. This supports the objective of the sanctions which is to significantly weaken Russia’s economic base, deprive it of critical markets for its products and significantly reduce its ability to wage war. Any other interpretation would render the ban largely devoid of purpose and create significant loopholes.
However, the Union is committed to preventing its sanctions from having an impact on the food and energy security of third countries in the world, in particular the least developed ones. In the light of this commitment, clearly set out in recitals 11 and 12 of Council Regulation 2022/1269, the transfer to third countries of certain goods listed in Annexes XXI and XXII should be authorized “to combat food and energy insecurity in the world”. and “in order to avoid any potential negative consequences” in third countries. This applies to the transfer to third countries, as well as financing or financial assistance related to this transfer, carried out by EU operators or via EU territory (including in transit) of following goods: