European Union: Council of the European Union adopted 16th package of sanctions against Russia (Council Regulation 2025/392)

On 24 February 2025, the Council of the European Union adopted the 16th package of sanctions against Russia. The Regulation (EU) 2025/392 amends Regulation (EC) No 765/2006 concerning restrictive measures in view of the situation in Belarus and the involvement of Belarus in the Russian aggression against Ukraine. The sanctions extend dual-use export restrictions to software related to Computer Numerical Control (CNC) machine tools used to manufacture weapons, and video game controllers used by the Russian army to pilot drones. In addition, the package adds 13 financial institutions to the list of entities prohibited from providing specialised financial messaging services and includes 3 banks in the transaction ban for their use of the Central Bank of Russia's financial messaging system (SPFS) to circumvent EU sanctions. The sanctions also prohibit EU banks outside Russia from connecting to the SPFS and conducting transactions through it, in order to reduce Russia's financial resilience. Finally, it includes measures against Russian crypto asset exchanges and extends the transaction ban to crypto asset providers that facilitate sanctions evasion, including those involved in circumventing the oil price cap and enabling transactions with listed shadow fleet vessels.