On 20th of March, the anti-elusion measure, adopted within the 12th package of EU sanctions against Russia, prohibiting exports to that country, will come into effect.
Specifically, the regulation requires exporters of certain products affected by the measure to include the so-called “No Russia Clause” in sales, supply, or transfer contracts to third countries, expressly prohibiting the foreign commercial partner from re-exporting to Russia, or for use in Russia, the goods subject to the contract.
Evasion of the prohibitions imposed by the economic sanctions against the Russian Federation is punishable by an administrative fine of up to 500,000 euros.
Therefore, it is necessary for companies to verify whether their products are affected by the measure and, if so, to update their commercial contracts by the deadline of March 20th, in order to avoid possible sanctions by the supervisory authority.
It is recommended, in any case, to update contract templates to make them compliant with legal obligations (e.g., export control, personal data processing) as well as to align with policies adopted or being adopted in the context of corporate criminal liability (Legislative Decree 231/01), sustainability, and ESG objectives.
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The International Commercial Law and Customs Law Departments of Bacciardi Partners are available to ensure that your contracts comply with legal obligations and support your business and corporate objectives.