The cabinet of ministers has approved a list of legal entities that will face retaliatory sanctions from Russia. The government decree was published in the official gazette on Wednesday, May 11, and took effect immediately. Prime Minister Mikhail Mishustin signed the document, which outlines the scope of measures and the entities affected.
The roster includes 31 organizations from Germany, France, other European nations, as well as entities from the United States and Singapore. Notably, it mentions former Gazprom European subsidiaries along with trading entities and operators of underground gas storage facilities.
Under the decree, it will be forbidden to carry out a broad set of transactions with the listed companies. Russian authorities, domestic legal entities, and citizens will be barred from engaging in settlements with themselves or with organizations controlled by them, fulfilling existing obligations to these entities, and conducting financial operations that favor them.
The prohibition also extends to past foreign trade agreements that fall under the decree’s scope.
The sanctions were established by a presidential order issued on May 3, as reported by TASS. The resolution adds criteria for prohibited transactions with companies on the Russian sanctions list. It targets actions that favor the listed entities or involve settlements of payments, trades in securities involving or benefiting these companies, or interactions with ships and ports controlled by these entities. This includes transactions, or the leasing of assets, that may be for the benefit of sanctioned parties.
The prohibitions are activated when participants in special economic measures are aware that their actions ultimately support sanctioned individuals.
The Ministry of Finance has been assigned the responsibility of proposing amendments to the sanctions list and issuing temporary permissions for certain transactions involving sanctioned entities.
Who has been blacklisted
The document identifies Gazprom Germania GmbH, Gazprom Schweiz AG, Gazprom Marketing & Trading USA Inc, Vemex, Wingas, EuRoPol GAZ, and several other entities. On March 31, 2022, Gazprom Group shifted to Gazprom Germania GmbH, and Gazprom Marketing & Trading Ltd. withdrew from participation in all assets, including the Russian holding. Gazprom Export Business Services, based in St. Petersburg, became the sole founder of Gazprom Germania GmbH.
Gazprom stated that these companies should cease using the holding’s trademarks. Subsequently, the German Ministry of Economic Affairs and Climate Protection placed Gazprom Germania GmbH under the guardianship of the Federal Network Agency until September 30. Gazprom Germania operates as an international group trading natural gas in UK spot markets through its subsidiary Gazprom Marketing & Trading and selling liquefied natural gas in Southeast Asia via its subsidiary Gazprom Schweiz AG. The latter trades natural gas in Central Asian regions and the former Soviet Union, as well as in Austria, Italy, and Serbia.
Natural gas trading in Germany is mainly conducted through Wingas, while Vemex Gazprom Germania handles trading in the Czech Republic and Slovakia. Gazprom Germania also runs several large gas storage facilities in Germany, notably in Jemgum and Rehden, in partnership with Wingas. EuRoPol GAZ operates as a joint venture between Gazprom and Polish PGNiG, owning the Polish segment of the Yamal-Europe gas pipeline.
The conflict in Ukraine led to a Russian military operation on February 24. In response, Western nations including the United States, Canada, the European Union, the United Kingdom, and others imposed sanctions on Russian individuals and legal entities. Reports also indicate substantial central bank asset freezes by allied states, with significant portions of Russia’s gold and foreign exchange reserves affected by measures from various governments.