The 14th round of sanctions

On June 24, local time, the Council of the European Union issued a statement on its official website, officially announcing the 14th round of sanctions against Russia.

This round of sanctions is aimed at high-value sectors of the Russian economy, such as energy, finance and trade. In particular, the EU has imposed further restrictions on the export of goods that help boost Russia’s production capacity, with chemicals such as manganese ore, rare earth compounds, plastics and mining, control and electrical equipment all subject to export restrictions. The sanctions package also includes measures against 116 individuals and entities in Russia that the EU believes are involved in circumventing trade sanctions, procuring components used in the production of sensitive products such as drones, or providing material support to Russian military operations.

Coupled with recent US sanctions, remittances from Russian buyers are increasingly difficult to receive.

On June 12, the U.S. Department of State and Treasury OFAC issued a notice imposing sanctions on more than 300 individuals and entities, involving the overseas branches of Russian financial institutions, including VTB Shanghai, where foreign trade people have lined up to open accounts since this year. Because of the executive order, banks in third countries will be reluctant to deal with high-risk Russian clients.

On June 21, Russia’s Moscow Exchange announced that some of the exchange’s customers’ foreign exchange deposits had been frozen by the United States sanctions.