EU sanctions on Russia for exporters: prohibited goods, the No Russia clause (Article 12g) and due diligence

Regulation (EU) 833/2014 prohibits selling, supplying, transferring or exporting, directly or indirectly, to any person or entity in Russia, or for use in Russia, dual-use goods and technology (Article 2) and those in Annex VII (Article 2a, 2 bis in Spanish), which are items that might contribute to Russia's military and technological enhancement or to its defence and security sector. It does not matter whether the product originates in Europe or not, and transit through Russian territory is also prohibited.

The prohibition extends to services: technical assistance, brokering, financing, and the sale or licensing of intellectual property or trade secrets relating to those products. Furthermore, exporting is not just shipping a box: emailing blueprints, software or dual-use technology to someone outside the EU is also exporting (Regulation (EU) 2021/821).

The tariff classification code is not enough to know whether your product is affected. The Commission confirms this in its FAQ of 25 September 2026: there is no correlation between CN codes and dual-use or Annex VII items, which are identified by their technical description. You must check the technical data sheet against those annexes. Annex XL (common high priority items), by contrast, is ordered by CN codes.

Nor can you rely on a general authorisation: Delegated Regulation (EU) 2022/699 removed Russia, from 5 May 2022, from general authorisations EU003, EU004 and EU005. The regulation also contains other sectoral prohibitions that this guide does not cover.

Article 12g (12 octies in the Spanish version, hence "No Russia clause") has required, since 20 March 2024, anyone exporting to a third country goods listed in Annexes XI (aviation), XX (jet fuel), XXXV (firearms) or XL (common high priority items), or firearms and ammunition in Annex I to Regulation (EU) 258/2012, to contractually prohibit their re-exportation to Russia or for use in Russia. The contract must provide for adequate remedies in the event of a breach, and the exporter must notify the competent authority as soon as they become aware of one.

It is not required with buyers in the partner countries listed in Annex VIII (according to the Commission, as of 24 June 2024: the United States, Japan, the United Kingdom, South Korea, Australia, Canada, New Zealand, Norway, Switzerland, Liechtenstein and Iceland), nor in contracts involving only EU operators where delivery takes place within the EU.

Public contracts concluded with a public authority in a third country or with an international organisation are exempt, but must be notified to the authority within 2 weeks of their conclusion. The transitional period for contracts concluded before 19 December 2023 ended on 1 January 2025: today, any performance requires the clause, including returns to a manufacturer in a third country. Moreover, it must be agreed before exporting or, at the latest, at the time of export, with documentary proof in case the authority requests it.

There is no mandatory wording, but the Commission publishes a model clause that it considers valid and recommends identifying it as an essential element of the contract. It has 5 sections: (1) the buyer shall not sell, export or re-export, directly or indirectly, to Russia or for use in Russia any goods supplied under the contract that fall under Article 12g (12 octies); (2) the buyer shall undertake its best efforts to ensure that the purpose is not frustrated by any third parties further down the commercial chain, including possible resellers; (3) the buyer shall set up and maintain an adequate monitoring mechanism to detect such conduct; (4) any violation shall constitute a material breach and entitle the exporter to seek remedies, including termination of the contract and a penalty of a percentage (set by the parties) of the total value of the contract or price of the goods exported, whichever is higher; (5) the buyer shall immediately inform the exporter of any problems and make available information concerning compliance within 2 weeks of the simple request for such information.

Remedies are the most common point of failure. The Commission requires them to be reasonably strong and deterrent: stopping deliveries, suspending or terminating the contract, financial penalties or a competent court. A prohibition without consequences does not comply.

It may be included in general terms and conditions that are validly incorporated into the contract, and a general clause prohibiting re-exportation to any EU-sanctioned country is also valid if it includes the required remedies. What is decisive is being able to prove that the buyer accepted it.

Managora drafts the clause for you in Spanish and English, integrates it into your contracts and general terms and conditions, and sets up your due diligence protocol. This falls under our export control contract clauses service; you can see the current fee on the service page.

Regulation (EU) 2024/1745 of 24 June 2024 added Article 8a (8 bis in Spanish): Union persons and entities shall undertake their best efforts to ensure that any legal person, entity or body established outside the Union that they own or control does not participate in activities that undermine the restrictive measures.

It is a best-efforts obligation resting on the European company, which will have to demonstrate what steps it took. In practice: a group-wide sanctions policy that is genuinely enforced, the same No Russia clause in the subsidiary's contracts, sensitive products flagged in its ordering system, training and written reviews. Managora prepares the policy and templates for your subsidiary to adopt.

The clause alone is not enough. Article 12 of the regulation prohibits participating, knowingly and intentionally, in activities seeking to circumvent sanctions, regardless of the counterparty's country, including those in Annex VIII. Furthermore, there are 2 situations where suspicion becomes a legal obligation: if the authority informs you that Annex VII goods you are exporting to another country may be intended for Russia, you require authorisation (Article 2a(1aa) / artículo 2 bis, apartado 1 bis bis); and if you are aware that a non-listed dual-use item is intended for weapons of mass destruction or for a military end-use in a country subject to an arms embargo, you must notify the authority (Article 4 of Regulation 2021/821).

Common red flags in practice: a new customer ordering products unrelated to their line of business; a sudden spike in orders going to countries neighbouring Russia; payments coming from a third party or another country; delivery to a free trade zone or logistics warehouse rather than the end-user's plant; refusal to sign the clause or the end-use statement; a change of consignee while the goods are in transit.

Due diligence must leave a paper trail: who the buyer is and who controls them, an end-use and end-user statement, verification of the address and business activity, and screening against EU sanctions lists. For dual-use items, you must also keep records of each export for at least 5 years from the end of the calendar year in which the export took place and, if operating under a Spanish licence, all documentation for each transaction for 10 years from the expiry of the authorisation.

If you detect diversion: stop deliveries, trigger the contractual remedies and inform the authority. Article 8 of the regulation allows Member States to take voluntary self-disclosure into account as a mitigating factor, and the Commission maintains an anonymous whistleblower tool.

Without needing a specific derogation authorisation, and always for non-military use and a non-military end-user, shipments are permitted for humanitarian purposes, health emergencies, the prevention of serious events affecting health, safety or the environment, as a response to natural disasters, and for medical or pharmaceutical purposes for items not listed in Annex XL. You must state this in the customs declaration and notify the authority: the first use per recipient in Russia for dual-use items, and every use for Annex VII items. For dual-use items, the export licence under Regulation (EU) 2021/821 is still required in addition. The customs declaration is submitted by your company or a registered customs representative; we prepare the exemption statement and the notification for you to sign.

With case-by-case authorisation (Articles 2.4 and 2a.4 / 2 bis.4), exports may be permitted for, among others, intergovernmental space programmes, civil nuclear uses, maritime safety, civilian communications networks not under public control, entities owned or controlled by EU or partner-country companies, diplomatic representations, software updates and consumer communication devices. Without the authorisation, the shipment remains prohibited.

In Spain, according to the list published by the Ministry of Foreign Affairs, licences for dual-use items and arms, including those provided for under the sanctions, are handled by the Subdirección General de Comercio Internacional de Material de Defensa y Doble Uso (Subdirectorate-General for International Trade in Defence and Dual-Use Material, part of the Secretaría de Estado de Comercio, the State Secretariat for Trade). If an Annex VII item is not dual-use, it is advisable to confirm the specific unit beforehand.

To export dual-use goods to other non-EU countries, you need a licence, and before that, registration in the REOCE (Special Registry of Foreign Trade Operators in Defence and Dual-Use Material; 60 working days, with a report from the JIMDDU, the Interministerial Regulatory Board on Foreign Trade in Defence and Dual-Use Material). Licence applications are decided within a maximum of 6 months and administrative silence means refusal; an individual licence is valid for 12 months and requires an end-use statement signed by the final consignee. Applications are submitted through portal SIA 991061, which accepts representatives: Managora handles the registration and the licence for you under a power of attorney, and your company is always the licence holder. You can see the current fee on each service page.

The regulation leaves the penalties, including criminal penalties, to each Member State and requires them to provide for confiscation (Article 8). In Spain, exporting dual-use items or defence material without authorisation, or with one obtained using false data or documents, constitutes the criminal offence of smuggling from €50,000 upwards under Ley Orgánica 12/1995 (the Spanish Smuggling Act). For goods subject to commercial policy measures, the threshold is €150,000, and for weapons, explosives or chemical or biological agents there is no threshold.

The penalties are imprisonment from 1 to 5 years and a fine of 1 to 6 times the value of the goods, imposed in the upper half of the sentencing range in all these cases. For the company, a fine of 2 to 4 times the value, prohibitions lasting 1 to 3 years and, for dual-use and defence items, suspension of exporting activities from 6 months to 2 years. Conspiracy and solicitation to commit the offence are also punishable.

Below the criminal threshold, it constitutes an administrative infringement even in cases of mere negligence: a fine of 100% to 350% (minimum €500) under the general regime and 200% to 350% (minimum €1,000) for dual-use and defence items, together with confiscation and, for dual-use and defence items, possible temporary closure or suspension of activities.

Directive (EU) 2024/1226 obliges Member States to criminalise the violation of EU sanctions; as of the date of this guide, the Spanish law transposing it has not yet been published. In administrative proceedings, Managora prepares and files written submissions (alegaciones) under your power of attorney; we do not undertake criminal defence.

We classify your product catalogue against the dual-use list, Annex VII and the annexes subject to the clause, draft the clause and the group policy, handle your REOCE registration and licences under your power of attorney, and prepare the notifications that you sign. We never ask for your digital certificate.

Your company signs the contracts and notifications and applies the protocol to every order. The customs declaration is submitted by your company or a registered customs representative; we prepare the licence and the details that must be stated on the declaration.