New trade sanctions on Russia announced at G7 Summit

23 May 2023

During the recent 2023 G7 Summit held in Hiroshima, Japan, from 19 to 21 May, several participating countries announced a range of new sanctions and export controls to be imposed on Russia, including the United States (US) and United Kingdom (UK).

US and UK sanctions announcements at the G7 Summit

The US has announced an expansion of export control and other economic sanctions against Russia, including restricting exports of categories of goods used on the battlefield, as well as preventing some 70 entities from Russia and entities from third countries, from receiving US exports by adding them to the US Department of Commerce’s ‘blacklist’. The bans on the entities from third countries are otherwise described as ‘secondary boycotts’ as they affect entities outside of Russia who are believed to be supporting Russia.

In addition, the US indicated it will announce some 300 new sanctions against individuals, entities, vessels and aircraft involved in the assistance of Russia’s future energy extracting capabilities. This will include entities across Europe, the Middle East and Asia deemed to be helping to support Russian interests in the conflict.

In turn, UK Prime Minister Rishi Sunak announced a UK ban on imports of Russian diamonds and Russian-origin copper, nickel and aluminium, as well as a further expansion of targeted financial sanctions to include an additional 86 individuals and firms linked to the Russian Government.

New Australian targeted financial sanctions

Closely following suit with its US and UK allies, Australian Prime Minister Anthony Albanese announced additional Australian targeted financial sanctions to add to those already implemented against more than 1,000 people and entities, who in the view of the Australian government, have given support to Russia’s military operation in Ukraine.

It is noted that the Department of Foreign Affairs and Trade (DFAT) maintains a publicly available list of all individuals and entities which are the subject of Australia’s targeted financial sanctions.

The most recent version of the Consolidated List can be found here.

It is important to be aware that is a serious criminal offence to provide assets to, or deal with the assets of, a person or entity listed on the Consolidated List. Penalties include a maximum sentence of up to 10 years’ imprisonment for individuals, and substantial fines for both individuals and bodies corporate.

The latest Australian additions to the Consolidated List target subsidiaries of the Russian state-owned atomic energy corporation, Rosatom, who are involved in nuclear research, infrastructure development and weapons manufacturing.

Three of Russia’s largest companies in petroleum (Rosneft), gold mining (Polyus PJSC), and steel (Severstal PJSC), will also be targeted.

Ban on export of Australian machinery to Russia

In addition, DFAT has announced that new sanctions will also implement a ban on the export of ‘machinery and related parts’ to Russia and regions of Ukraine currently under Russian control.

This will add to the current list of export sanctioned goods maintained by the Australian government which currently includes various arms or related materials, aluminium-related goods, as well as luxury goods including jewellery, caviar, and tobacco products.

Before the imposition of the measures, DFAT has invited submissions from interested individuals, businesses and other stakeholders in relation to the proposed export ban.

These submissions will inform the precise design and implementation of the ban. It is advisable for industry members and businesses who may be affected to lodge a submission.

To lodge a submission, interested parties can e-mail or mail by post to the following address:

Australian Sanctions Office
Department of Foreign Affairs and Trade
RG Casey Building
John McEwen Crescent

Submission will close at 5pm on Monday 19 June, 2023.

Additional information regarding public consultation on the proposed ban of exports of machinery and related parts to Russia, can be found here.

This above link includes further information on two online information sessions which DFAT will host for interested stakeholders as part of the consultation process, as well as answers to some frequently asked questions.

Contact us

If you are an Australian company or individual requiring advice on any aspect of Australian sanctions law, or would like assistance in preparing submissions to DFAT in relation to the proposed ban on the export of machinery, please contact our Customs & Trade team.

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