A group of European countries not in the EU aligned with two recent sanctions decisions from the bloc pertaining to Russia and its war in Ukraine.

The Group of Seven (G7) nations agreed last week at their summit in Apulia, Italy, to use interest from frozen Russian assets to finance about $50 billion in loans to Ukraine.

The EU opened a dispute settlement proceeding against Algeria under the two sides' Association Agreement to "address several restrictions" on EU exports and investments, the European Commission's Directorate-General for Trade announced. Algeria imposed various trade restrictions on the EU in 2021, covering multiple sectors, including agriculture and motor vehicles.

The EU General Court on June 12 rejected Syrian businessman Issam Shammout's challenge to his designation under the bloc's Syria sanctions regime. Shammout, an executive for airline company Cham Wings Airlines and the Shammout Group, was sanctioned due to his position as a "leading businessperson operating in Syria."

The EU General Court on June 12 rejected Russian investment fund VEB.RF's application to be removed from the bloc's Russia sanctions regime, according to an unofficial translation. The European Council sanctioned the financial institution for helping undermine the territorial sovereignty of Ukraine and providing material support to "Russian decision-makers responsible for the annexation of Crimea or the destabilization of Eastern Ukraine."

The European Commission on June 10 opened a foreign subsidies investigation on the Emirates Telecommunications Group Company's (e&'s) sole control of PPF Telecom Group B.V., "excluding its Czech business." The commission said that it has "preliminary concerns" that e&, a state-controlled telecommunications firm, "may have been granted foreign subsidies that could distort the EU internal market." The investigation was opened under the Foreign Subsidies Regulation and will look at "actual or potential negative effects on the acquisition process" and whether the foreign subsidies "lead to actual or potential negative effects in the internal market."

Ukraine recently announced a zero export quota for sugar to the EU for the rest of the year after meeting the 262,000 metric ton export quota set by the EU for the year, USDA’s Foreign Agricultural Service said in a report last week. Ukraine established the “self-limiting trade measure,” which took effect June 1, to “create long term trust” with the EU, USDA said. “This quota is intended to block sugar exports to the EU, while exports to other destinations will remain unaffected.”

The U.K. recently amended a general license under its Russia sanctions regime to allow a "scheme of arrangement prepared" by the administrators of sanctioned Russian bank VTB Capital. The license generally permits the bank to pay for its "basic needs," which include the payment of insurance premiums, reasonable fees, property management services, employee pensions, taxes and rent or mortgage payments. The license expires at the end of the day April 3, 2030.

Even if the EU decides against imposing higher tariffs on Chinese electric vehicles in its ongoing countervailing duty probe (see 2310040012 and 2403150047), the bloc is likely to levy some sort of increased tariffs on Chinese EVs “in the future,” Taylor Wessing said in a June 3 client alert. The law firms said “observers believe” that the EU could raise those duties from the current 10-15% rate to about 30%.

The EU General Court on May 29 annulled the European Council's sanctions designation of Russian businessperson Farkhad Akhmedov, founder of Russian gas equipment supplier Tansley Trading and minority shareholder of Northgas. The court said that the council "made an error of assessment" in sanctioning Akhmedov "by considering that the applicant was a leading businessperson involved in economic sectors which provided a substantial source of revenue to" the Russian government.