The Council of the European Union adopted a new set of sanctions targeting the Belarusian economy, aiming to replicate some of the restrictive measures imposed on Russia and inhibt the republic’s role as a transit route for sanctioned goods, reports European Pravda, citing the Council of Europe.

On June 30 the EU also hiked the tariffs on the import of grain from Russia and Belarus to Europe to 50% in an effort to limit Europe’s dependence on grain and to free up space of more grain imports to Europe from Ukraine.

“The Council today adopted restrictive measures targeting the Belarusian economy, in view of the regime’s involvement in Russia’s illegal, unprovoked and unjustified war of aggression against Ukraine. These comprehensive measures aim at mirroring several of the restrictive measures already in place against Russia, and thereby address the issue of circumvention stemming from the high degree of integration existing between the Russian and Belarusian economies,” the Council said in a statement.

Belarus has responded to the growing European pressure by rattling its nuclear sabre. Minsk is ready to use non-strategic nuclear weapons if its sovereignty and independence are jeopardized, Belarusian First Deputy Defence Minister and Chief of the General Staff Pavel Muraveiko said on June 30.

"One of the last arguments and theses, which serve as a restraining factor is the re-deployment of non-strategic nuclear weapons in our country. We have learnt how to handle these weapons, we can use them confidently and we are capable of doing so. You can be sure, we will do this if our country’s sovereignty and independence are at risk," he said in an interview with the ONT television channel.

On March 25, 2023, Russian President Vladimir Putin announced that at Minsk’s request, Moscow would deploy its tactical nuclear weapons in Belarus,

The Council's decision extends the ban on exporting dual-use goods and technologies, as well as advanced technologies to Belarus. Additional restrictions have been introduced on the export of goods that could enhance Belarus' industrial potential, maritime navigation, and luxury items including top of the line European cars that are still reaching Moscow via Minsk.

The EU will also prohibit the direct or indirect import, purchase, or transfer of gold, diamonds, helium, coal, and mineral products, including crude oil, from Belarus coming from Russia. This measure is complemented by a new ban on exporting goods and technologies suitable for use in oil refining and the liquefaction of natural gas to Belarus.

The Council of the EU also prohibits the provision of certain services to Belarus, its government, state agencies, corporations, or agents, as well as to any individual or legal entity acting on their behalf or under their direction. These services include accounting, architectural and engineering services, advertising, and market research services.

Additionally, the EU extends the ban on the transport of goods by road through EU territory with trailers and semi-trailers registered in Belarus, including when transported by trucks registered outside of Belarus.

The decision is part of the latest fourteenth sanctions package on Russia that is increasingly including Belarus as a Russian proxy. The sanctions mandates that EU exporters include a "no-Belarus clause" in their future contracts. This clause prohibits the re-export to Belarus or for use in Belarus of critical goods and technologies, military goods, firearms, and ammunition.

Despite extreme sanctions, Western technology sanctions have largely failed to prevent Russia importing machines and electronics it cannot make itself. To minimise the risk of sanctions circumvention, the EU will ban the transit through Belarus of dual-use goods and technologies, items that could contribute to Belarus' military and technical enhancement, and goods that could strengthen its industrial capabilities. Additionally, to counter the re-export of military goods found in Ukraine or critical to the development of Russian military systems, EU operators selling such goods to third countries will need to implement due diligence mechanisms.

The EU Council adopted the fourteenth package of economic on June 24, that also include individual restrictive measures against Russia. For the first time since Russia's full-scale invasion of Ukraine, these measures include sanctions against Russian gas.

Russian, Belarusian grain import tariff hiked

In a parallel development, sanctions on imports of grain from Russia and Belarus to the EU came into effect on June 30 that increase tariffs in an effort to promote more imports of grain to Europe. Tariffs were increased to 50% of the market price for certain grains, according to a May 30 European Council decree.

Russia remained unfazed by the new measures. Sergey Dankvert, head of Russia’s Federal Service for Veterinary and Phytosanitary Supervision of Russia, told TASS that the decision will harm European food and port industries more than Russia, which will be able to diversify to other markets. "They have lost capacities on fertilizer, and they will lose port capacities on grain as well," Dankvert said, TASS reports.

The European Council asserted that the aim of the tariffs is to halt the “destabilization of European markets” by Russian grain and reduce Russia’s agricultural income. The tariffs will also free up a portion of the European market for Ukrainian grain imports to replace Russian, which has already caused overstocking and sparked protests among European farmers.

The new tariffs, described by European Commission Vice President Valdis Dombrovskis as "prohibitively high," effectively ban the import of grain, sunflower seed, and fodder crops from Russia and Belarus by making their import economically unfeasible. The proposal for these tariffs was introduced on March 22.

The Council noted that these tariffs do not apply to the transit of grain to third countries through European ports.

While the EU's strategy aims to support Ukraine's agricultural exports and stabilize local markets, it also risks further straining port capacities and the broader food supply chain within Europe. The full impact of these tariffs on both the European and Russian agricultural sectors remains to be seen.

EU Belarusian sanctiosn detail

The Council of Europe details of the measures include:

Trade

The Council is extending the export ban on dual-use/advanced goods and technologies, as well as introducing further export restrictions on goods which could contribute to the enhancement of Belarusian industrial capacities.

Further restrictions are also introduced on exports to Belarus of maritime navigation goods and technologies, and luxury goods.

Regarding imports, it will be prohibited to import directly or indirectly, purchase or transfer namely of gold and diamonds from Belarus, as well as helium, coal and mineral products including crude oil. The latter measure will be complemented by a new export ban on goods and technologies suitable for use in oil refining and the liquefaction of natural gas.

Services

The Council is prohibiting the provision of certain services to Belarus, its government, public bodies, corporations or agencies and to any natural or legal person acting on behalf or at their direction:

accounting services, auditing services, including statutory audit, bookkeeping services, tax consulting services, business and management consulting services, and public relations services;

architectural and engineering services, as well as IT consultancy services and legal advisory services;

advertising, market research and public opinion polling services, as well as product testing and technical inspection services.

Transport

The Council  is broadening  the prohibition on the transport of goods by road within the territory of the EU, by trailers and semi-trailers registered in Belarus, including when hauled by trucks registered outside Belarus.

In order to minimise the risk of circumvention, EU operators which are owned for 25% or more by a Belarusian natural or legal person, should be prohibited from becoming a road transport undertaking or from transporting goods by road in the Union, including in transit.

Anti-circumvention

Today’s decision requires that EU exporters insert in their future contract the so-called 'no-Belarus clause', through which they contractually prohibit the re-exportation to Belarus or re-exportation for use in Belarus of sensitive goods and technology, battlefield goods, firearms and ammunition.

In order to minimise the risk of circumvention, the EU will prohibit the transit via the territory of Belarus of dual-use goods and technologies, goods and technologies which might contribute to Belarus’s military and technological enhancement or to the development of its defence and security sector, goods which could contribute to the enhancement of Belarusian industrial capacities, goods and technologies for use in the aviation or space industry, as well as arms exported from the EU.

In addition, in order to help counter the re-exportation of battlefield goods found in Ukraine or critical to the development of Russian military systems, it was decided that EU operators selling such battlefield goods to third countries will need to implement due diligence mechanisms capable of identifying and assessing risks of re-exportation to Russia and mitigating them.

Lastly, EU parent companies will be required to undertake their best efforts to ensure that their third-country subsidiaries do not take part in any activities resulting in an outcome that the sanctions seek to prevent.

Protection of EU operators

The package also includes measures to allow EU operators to claim compensation from damages caused by Belarusian individuals and companies due to sanctions implementation and expropriation, provided that the member state national or company concerned does not have effective access to remedies, for example under the relevant bilateral investment treaty.

The relevant legal acts will be published in the Official Journal of the EU tomorrow.