Since the Russian invasion began in February 2022, the EU has repeatedly expanded its key legal instrument when it comes to trade and sector-specific sanctions against Russia: Regulation (EU) No 833/2014 (Regulation). Among the various restrictions, several provisions of the Regulation sanction the flow of goods from Russia, prohibiting not only the import but also the purchase and transfer of a wide variety of goods. In its extensive FAQs, the EU Commission has attempted to explain these bans in more detail. As helpful as these interpretations are in principle, however, they have created considerable uncertainty relating to the scope of these prohibitions.

On 6 October 2022, the European Union introduced a new, eighth wave of economic and individual sanction measures against Russia. The package is a response to Russia’s latest escalation of the war against Ukraine and its illegal annexation of Ukraine’s Donetsk, Luhansk, Zaporizhzhia and Kherson regions. In this briefing, we highlight the most important changes in this package: the expansion of export and import restrictions, the prohibition of certain services to Russian companies, the introduction of a price cap related to the maritime transport of Russian oil, the listing of additional individuals and entities, and the extension of pre-existing sanctions to the newly annexed regions of Ukraine. At the same time, several trade-related restrictions have been amended to avoid threats to nuclear safety and security, allowing for the authorization of exports, imports, or services in relation to civil nuclear capabilities and cooperation.

On 15 September 2022, the European Court of Justice (ECJ) ruled on the question whether competing tenders submitted by group companies may be excluded from public procurement procedures even absent a violation of Article 101 Treaty on the Functioning of the European Union (TFEU) due to the “group privilege” (Case C-416/21).

BLOMSTEIN advised Munich-based start up media company Julep Media GmbH on the FDI-control aspects of the sale to US-based podcast-as-a-service company Liberated Syndication Inc. (Libsyn).

On 21st of July 2022, the European Union introduced a new wave of new sanctions measures against Russia. These measures are reflected in the amendments to Council Regulations 833/2014 and 269/2014 and to Council Decisions 2014/512/CFSP and 2014/145/CFSP. The EU’s new measures aim to maintain and strengthen the effectiveness of the previous six packages of sanctions. Furthermore, the new package clarifies a few provisions from the previous packages. Finally, it aligns the EU’s sanctions with its allies, in particular, the G7 countries. In total, the new package contains a slew of updates, including minor tweaks. Below we highlight several important changes in this package.

On 1 July 2022, the European Parliament and the Council have reached a political agreement on the proposed Regulation on foreign subsidies distorting the internal market (FSR). This marks a decisive step towards the formal adoption of the FSR later this year. The FSR will provide the Commission with a new tool to investigate subsidies granted by non-EU governments out of its own motion but will also subject recipients of foreign subsidies to a parallel merger clearance procedure and to special review in public procurement procedures.

BLOMSTEIN advises Brazilian cattle and beef sector representative, Instituto Mato-Grossense da Carne, on EU’s ESG regulatory framework.

On 21 of June 2022, the German Federal Cabinet submitted to the Bundestag a draft for a Bundeswehr Procurement Acceleration Act (BwBBG-E). The scope of the proposed act covers all procurement initiatives for the supply of military equipment that serve to “directly strengthen the operational capability of the Bundeswehr” within the meaning of Section 104 (2) of the Competition Act (GWB) with a contract value reaching the applicable threshold. It is to be limited in time until 31 of December 2025 and will also apply to procurement procedures that have already begun at the time of entry into force.

BLOMSTEIN successfully advised IVC Evidensia on the acquisition of the Veterinary Clinic Hofheim, presumably the largest veterinary clinic in Germany.

On the 3rd June 2022 the European Council decided on a sixth package of sanctions to be imposed on Russia and Belarus in light of the ongoing war against Ukraine. We summarise the adopted measures below.