On 8 October 2024, the EU put in place a new framework, expanding restrictive measures beyond the current scope of the sectoral sanctions and the asset freeze imposed by Council Regulations (EU) No 269/2014 and (EU) No 833/2014, each as amended.
It provides for new instruments as part of an EU Hybrid Toolbox in light of Hybrid Threats. Though the terms “hybrid threats” and “hybrid campaigns” may have varying definitions, they in essence refer to actions conducted by state actors or non-state actors alike with their goal being to undermine or harm a target by combining overt and covert military and non-military means. From an EU viewpoint, such actions may for example include intimidation, sabotage, subversion, foreign information manipulation and interference, disinformation, malicious cyber activities and the instrumentalisation of migrants by third countries.
In the new sanctions regime, a list of natural and legal persons, entities and bodies is maintained, who are subject to a broad range of restrictive measures. Most importantly:
- All funds and economic resources belonging to, owned, held or controlled by them shall be frozen.
- No funds or economic resources shall be made available, directly or indirectly, to them.
It is furthermore worth pointing out that the sanctions regime leads to an impact for counterparties of someone sanctioned under the regime and that certain exemptions may be authorized.
The new sanctions regime is essentially relevant for (i) any Union citizen inside or outside of the EU, (ii) any EU based legal entity, inside or outside of the territory of the EU, and (iii) any legal person, entity or body in respect of any business done in whole or in part within the Union.
Noteworthy is the clarification in the sanctions regime that Union operators have to carry out appropriate due diligence. Explicitly, the protection against liability that is granted to Union operators if they do not know, and have no reasonable cause to suspect, that their actions would infringe Union restrictive measures cannot be invoked where Union operators have failed to carry out appropriate due diligence.
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