A merican Club Circular No . 09/25 1 MARCH 25, 2025 CIRCULAR NO. 09/25 TO MEMBERS OF THE ASSOCIATION Dear Member: UPDATE REGARDING THE RECENT SANCTIONS AGAINST RUSSIA: EU FAQS RELATED TO THE INFRASTRUCTURE TRANSACTION BAN (ARTICLE 5AE OF COUNCIL REGULATION EU NO. 833/2014) Members are referred to Circular No. 08/25 of March 7, 2025 on the 16th package of sanctions against Russia adopted by the EU. It was noted in the Circular that the package included Article 5ae of Council Regulation 833/2014 introducing a ban on engaging in any transaction with ports listed in Part A of Annex XLVII, namely: Ust-Luga, Primorsk, Novorossiysk, Astrakhan and Makhachkala. Paragraph 3 of the Article 5ae provided an exhaustive list of exemptions from this ban. We also noted that the International Group was seeking clarification on whether the transport of certain cargoes that can still be exported from Russia, e.g., coal, is still permitted, as there was no specific exemption for such cargoes. On March 20, 2025, the EU published FAQs on infrastructure transaction ban introduced in Article 5ae. The FAQs clarify that - unless specifically exempt under paragraph 3 of Article 5ae - goods cannot be exported from the listed ports: 4. Can the listed ports and locks in Russia be used for the transit of goods originating in Russia and not subject to an import ban? Last update: March 20, 2025 Article 5ae provides for a broad transaction ban. In principle, EU operators cannot engage in transactions if this concerns products not explicitly exempted in Art. 5ae paragraph 3. This also covers goods that are not subject to an import ban. Other Russian ports that are not listed in Annex XLVII can be used for the transit to a third country or for the import into the Union (if the good in questions is not subject to an import restriction). And the same position is confirmed specifically in relation to coal: 5. Can the listed ports and locks in Russia be used for the transit of Russian-origin coal to third countries? Last update: March 20, 2025 A merican Club Circular No. 09/25 2 The Union is committed to preventing EU sanctions from having a negative impact on legitimate trade or people-to-people contacts, or that they impact food and energy security of third countries around the globe, in particular the least developed ones. In addition, recital 29 of Council Regulation 395/2025 (“16th sanctions package”) refers to the prevention of negative impact on legitimate trade. Article 5ae of Council Regulation (EU) 833/2014 (as amended by Council Regulation (EU) 2025/395 of February 24, 2025) needs to be interpreted in light of these objective. EU operators are allowed to transport Russian coal to a third country to secure global energy security (see also Q. 2 of the FAQs on Import, Purchase & Transfer of Listed Goods). Nevertheless, EU operators cannot engage in transactions with the listed ports and must divert to a non-listed port for this purpose. Members should also note that the FAQs provide an important clarification with respect to the transport of sulfur: 8. Does the exemption provided under Art. 5ae paragraph 3(d) also apply to the purchase, import or transport of raw materials or components, such as sulfur, for the production of fertilizers? Last update: March 20, 2025 Yes, to the extent raw materials or components, including sulfur, are either used as fertilizers or as raw material to produce fertilizers, and provided further that their purchase, import or transport is no