On 20 and 24 of March 2025, the European Commission published two updated FAQ documents clarifying implementation of Article 5ae and the application of Article 3r of Council Regulation (EU) No 833/2014 (Regulation).
In the updated FAQs issued on 20 March 2025, the European Commission clarifies the prohibition on transactions involving designated Russian infrastructure. This measure prohibits EU operators from engaging in transactions with specific Russian ports, locks and airports listed in Annex XLVII of the Regulation. These sites are believed to support military activities or facilitate sanctions circumvention, including through unsafe shipping practices or the transfer of unmanned aerial vehicles (UAVs). The ban applies broadly to any transaction involving listed infrastructure, regardless of whether it is state owned or privately operated. Prohibited activities include the provision of goods or services; payment of berthing or port fees; cargo handling; training or consultancy services; and infrastructure development.
With regard to transit activities, the European Commission clarified that while listed ports cannot be used for the transit of goods unless specifically exempted, nonlisted Russian ports may still be used for transporting nonsanctioned goods to the EU or third countries. For example, Russian coal may be exported to third countries if this supports global energy security, but EU operators must avoid engaging with listed ports and reroute shipments accordingly. By contrast, Kazakh-origin coal or petroleum products may transit through listed infrastructure, provided both the ownership and origin of the goods are non-Russian and the broader exemption framework applies.
The FAQ updates further specify that the exemption for fertilisers under Article 5ae(3)(d) also covers inputs and components such as sulphur, so long as they are used for fertiliser production and are not otherwise restricted under the Regulation. In terms of jurisdictional scope, Article 5ae applies to EU nationals, entities established in the EU, and EU-flagged vessels, irrespective of ownership structure or crew nationality. These vessels are prohibited from calling at listed ports unless an exemption applies. Services provided to vessels that call at such ports, such as insurance, bunkering or cargo handling, are not automatically prohibited unless they entail a direct or indirect transaction with the listed entity.
Where EU operators import nonsanctioned goods via a listed port but do not select the routing or pay port-related fees, the transaction is not considered prohibited. However, if the operator plays a role in selecting the port or pays for port services, whether directly or indirectly, this may constitute a prohibited indirect transaction under Article 5ae.
The mere presence of EU nationals on board vessels calling at listed ports does not itself trigger the prohibition, provided they do not engage in contractual relationships with the infrastructure.
Finally, the European Commission reminds operators that all transactions conducted under the exemptions in Article 5ae (3) and (4) must be reported to the national competent authority within two weeks of execution. This includes, for example, shipping companies loading exempt cargo in listed ports, or airlines making emergency landings at listed airports. Operators that rely on third-party carriers and do not themselves interact with the listed infrastructure are not subject to this reporting obligation.
The update issued on 24 March 2025 is dedicated to the questions raised in relation to the transshipment operations of Russian-origin liquefied natural gas (LNG) within the EU. The clarifications directly relate to terminal operators, LNG traders, shippers and other stakeholders involved in the storage, reloading and movement of LNG across member states. These FAQs underline that the key restriction under Article 3r of the Regulation is the prohibition on unloading Russian LNG in the EU for the purpose of reexporting it to third countries. Such activity, including storing LNG for price arbitrage before external resale, is expressly forbidden. Russian LNG may only be unloaded within the EU for one of two purposes: direct import into the member state where it is received; or reloading for transport to another EU member state, provided such reloading has been authorised in accordance with Article 3r(3). Terminal operators are tasked with ensuring that these preconditions are met before any unloading can even commence.
Where Russian LNG is to be reloaded for shipment to another member state, a formal authorisation must be obtained from the national competent authority (NCA) of the member state where reloading occurs. This authorisation can only be granted when the destination member state confirms that said cargo is necessary for its domestic energy supply. It should be noted that where the reloading and importing states are the same (e.g. shipments between mainland ports and outer territories), no authorisation is required. Importantly, while blanket authorisations for general categories of operators or vessels are not permitted, NCAs may issue “bundled” authorisations covering repeated or scheduled operations (e.g. weekly or quarterly), provided these are accompanied by adequate reporting obligations.
To comply with Article 3r(4), operators must also carry out due diligence to confirm the origin of the LNG, particularly when dealing with shared or mixed tanks, whether physical or virtual.
Relevant factors include the shipper’s past practices, the time elapsed between unloading and reloading, whether commercial services were purchased as a bundle, and the nationalities of the involved economic operators. The European Commission also allows the use of mass balancing systems in these contexts; operators may reload LNG molecules from a tank containing mixed-origin gas so long as the volume reloaded corresponds to non-Russian LNG received into the system over a given period. National authorities are expected to provide further technical guidance on implementing this approach.
The new guidance also addresses reporting obligations under paragraph 7 of Article 3r. Entities performing unloading operations, including terminal operators, transmission system operators, cargo owners or shippers, depending on national practice, must report all unloading and import operations involving Russian LNG (vid. CN code 2711 11 00). The first report was due on 26 July 2024, and monthly reporting is now required on an ongoing basis. Finally, the European Commission clarifies that Article 3r does not apply to the reloading of Russian LNG onto trucks. However, operators must not use this channel to circumvent the restrictions on transshipment, as regulatory scrutiny will focus not only on the mode of transport but also on the intent and effect of the transaction.
Taken together, the clarifications issued on Articles 5ae and 3r underscore the EU’s continued tightening of restrictions on Russian energy flows and infrastructure. Companies operating in the energy, shipping, logistics and financial sectors should urgently assess their exposure to Russian-origin LNG and infrastructure-linked transactions. Compliance protocols must be updated to incorporate origin tracing, contractual due diligence and tailored reporting procedures. For further details, please refer to the Commission Consolidated FAQs.
