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As of 20 March 2024, the revised European Union sanctions regulations entered into force, which provides for the obligation to contractually prohibit the re-export of goods into Russia concerning those specified in Council Regulation (EU) No. 833/2014 (the “Regulation“) (for example, technologies intended for use in aviation, jet fuel, various weapons, radio navigation equipment, digital cameras, navigation devices, etc.).

The re-export ban applies to exporters who deliver goods to countries other than the European Union or countries listed in Annex VIII of the Regulation, such as the United States of America, the United Kingdom, Australia, South Korea, Japan, New Zealand, Canada, Norway, Switzerland.

The re-export ban applies to the following goods:

• sensitive goods and technologies, as listed in Annexes XI, XX and XXXV of the Regulation (for example, new rubber pneumatic tires, used in aviation, brake discs and pads, used in aviation, jet fuel (other than kerosene), kerosene-type jet fuel ( medium oils), other firearms and similar devices powered by an explosive charge, weapons (such as spring-loaded shooters, air or gas guns and pistols, etc.);
• common high-priority goods, as listed in Annex XL of the Regulation (for example, radio navigation equipment, other television cameras, digital cameras and video cameras, navigation devices and instruments, etc.);
• firearms and ammunition, as listed in Council Regulation (EU) No. 258/2012 in Annex I (e.g., semi-automatic short-barrelled weapons or reloadable short-barrelled weapons, reloadable and semi-automatic long-barrelled firearms with a smooth barrel not exceeding 60 cm in length, etc.).

For agreements concluded before 19 December 2023, the re-export prohibition clause must be implemented by 19 December 2024, unless the agreement expires before this date. For agreements concluded after 19 December 2023, the re-export clause must be implemented on 20 March 2024. Agreements concluded from 20 March 2024 (inclusive) must immediately contain the re-export ban clause.

The Regulation does not provide a specific wording of the clause for the re-export ban, however, it stipulates exporters must ensure the agreement with a third-country counterparty provides for appropriate legal remedies in the event of a breach of contractual obligations, including the re-export prohibition clause.

If a third-country business partner violates any of the contractual obligations concluded under the re-export ban, the exporters shall immediately inform the competent authority of the Member State in which the exporters are residents or in which they are registered.