Sanctions Summary - July 30 (with Turza Comment)
On July 30, 2014, the European Council published its regulation and decision concerning trade and investment restrictions for Crimea and Sevastopol. The regulation prohibits EU nationals from entering into or participating in new infrastructure investments in the transport, telecommunications and energy sectors of Crimea and Sevastopol. The regulation contains similar prohibitions related to participation in the exploitation of oil, gas and minerals in the region. The regulation also prohibits the export to Crimea and Sevastopol of key equipment and technology for the same sectors.
The European Council also designated an additional three entities and eight individuals. The entities added to the EU's sanctions list are as follows: Almaz-Antey (a Russian state-owned arms company); Dobrolet (a subsidiary of a Russian state-owned airline); and the Russian National Commercial Bank (fully owned by the so-called "Republic of Crimea"). Almaz-Antey was sanctioned previously by both the United States and Canada under their Sectoral Sanctions programs.
The eight individuals include four Ukrainian separatist leaders and four close associates of Russian President Vladimir Putin. Among the Putin associates named by the European Union is Yuriy Kovalchuk, the chairman and largest shareholder of Bank Rossiya. Both Kovalchuk and Bank Rossiya were previously sanctioned by the United States. Other Putin associates include Nikolay Shamalov, the second-largest shareholder of Bank Rossiya; Arkady Rotenberg, whose companies were awarded lucrative contracts in the lead up to the Sochi Winter Olympics; and Alexey Gromov, first Deputy Chief of Staff of the Presidential Administration.
Turza Comment: While the sanctions published today by the European Council include a number of important individuals, including Yuriy Kovalchuk and Arkady Rotenberg (both of whom were previously designated by the United States and Canada), additional details on Europe's sectoral sanctions remain outstanding. Publication of those sanctions is expected to occur later this week.