Australia: Sanctions Tracker – Australian Update On Sanctions Responses To The Situation In Ukraine

We previously discussed sanctions measures that have been proposed in several jurisdictions as a potential response to any prospective Russian military incursion into Ukraine on February 4, February 11 and February 23. Since our last update, the EU, UK, US and Australia have imposed additional sanctions in response to the situation. An update on the EU and UK sanctions was published on February 24.

This post provides an update regarding recent Ukraine-related sanctions measures in Australia.

On 24 February 2022, the Australian Government introduced a number of amendments to the Autonomous Sanctions Regulations 2011 (Cth)¹ imposing sanctions against "Russian individuals, organisations and banks as part of the international effort to impose a sharp cost on Russia for its unprovoked and unacceptable aggression against Ukraine."²

Sanctions imposed on individuals and entities

Under the first phase of sanctions announced on 23 February 2022, Australia has imposed travel bans and targeted financial sanctions on eight members of the Security Council of the Russian Federation.³ These individuals were described as being "responsible for providing policy approval for Russia's recognition of the so-called Donetsk People's Republic and the Luhansk People's Republic on 21 February 2022."⁴

The second phase of sanctions, announced on 24 February 2022, include financial sanctions against four financial institutions,⁵ an additional 25 persons and four entities who have been responsible "for formulating and executing security-related policies and providing weapons and strategic advice."⁶ The persons include "army commanders, deputy defence ministers and Russian mercenaries" and entities which are "involved in the development and sale of military technology and weapons".⁷ The targeted financial institutions include IS Bank, Genbank, Black Sea Bank for Development and Reconstructions, and Promsvyazbank (which are all also subject to sanctions by the UK).⁸

The sanctions have immediate effect from today, 25 February 2022.

As a result of these sanctions, the consolidated Ukraine List now includes 60 entities and 204 individuals.

The targeted sanctions: ⁹

• prohibit assets being made available, either directly or indirectly, to, or for the benefit of, a designated person or entity;
• require persons holding assets that are owned or controlled by a designated person or entity to freeze that asset;
• prohibit designated persons from travelling to or entering Australia.

Sanctions extended to Luhansk and Donetsk

In addition, the Autonomous Sanctions Amendment (Ukraine Regions) Regulations 2022 extends the existing Crimea and Sevastopol autonomous sanctions regime to apply to the Luhansk and Donetsk regions from 28 March 2022.¹⁰ Under the Regulations, Luhansk and Donetsk will also be subject to the restrictions currently imposed on Crimea and Sevastopol, including:

• the export or supply of certain goods relating to the creation, acquisition or development of infrastructure for the transport, telecommunications or energy sectors, the exploitation of oil, gas or mineral reserves;
• the import, purchase or transport of certain goods including arms related material;
• certain commercial activities including the grant of loans or credit or establishing a joint venture relating to the creation, acquisition or development of infrastructure in transport, telecommunications or energy sectors or the exploitation of oil or gas, or of specified mineral resources;
• the provision of certain services including, for example, financial assistance or financial services which relate to goods originating in or exported from the region;
• providing assets to designated persons or entities; and
• dealing with the assets of designated persons or entities.

The restrictions to Luhansk and Donetsk target the "transport, energy, telecommunications, oil, gas and minerals sectors". They will take effect from 28 March 2022 to give Australian businesses and individuals an opportunity to incorporate these sanctions, either by ceasing activities or applying to the Minister for Foreign Affairs for a sanctions permit.¹¹