EU Foreign Relations and Sanctions

The European Union is a global actor with an increasingly complex system of foreign relations. Restrictive measures under EU law, commonly known as sanctions, are legal tools the European Union uses to influence the behaviour of governments, organizations, and individuals outside the EU in order to respond to threats to international peace, security, or the rule of law. They are a central part of the EU’s Common Foreign and Security Policy (CFSP).

Article 21 of the Treaty on European Union (TEU) sets out the principles for the EU’s external action. Article 29 TEU and Article 215 of the Treaty on the Functioning of the European Union (TFEU) provide the formal basis for adopting restrictive measures, first through a Council decision and then, where needed, through a regulation binding on all EU operators.

Types of restrictive measures are:

• Asset freezes: Blocking access to funds and economic resources.
• Travel bans: Prohibiting entry into or transit through EU territory.
• Prohibitions on making funds available to listed individuals and entities.
• Restrictions on trade in specific goods (e.g., arms embargoes, technology controls).
• Restrictions on financial transactions or investment (e.g., limits on banking operations, bond sales).
• Bans on certain services (e.g., legal, engineering, or financial services).

EU sanctions have significant legal and commercial implications and challenges for businesses operating internationally. Our EU Foreign Relations and Sanctions practice advises enterprises, financial institutions, and individuals on navigating the evolving framework of EU external action, including trade and investment restrictions, embargoes, and restrictive measures (sanctions). We assist in areas such as:

• EU sanctions regimes (asset freezes, trade restrictions, travel bans).
• Compliance with EU restrictive measures in sectors such as banking, energy, and defence.
• Advice on the territorial and extraterritorial impact of EU sanctions.
• Export controls and investment screening mechanisms under EU law.
• Public international law issues related to the EU’s external action.
• Representation in legal challenges of unlawful measures and administrative fines.

Our EU Foreign Relations and Sanctions practice combines technical excellence in EU law with a practical understanding of foreign policy dynamics, ensuring that clients not only comply with regulatory obligations but also safeguard their commercial interests in a fast-changing geopolitical landscape.

You are welcome to contact us here if you would like to learn more what we can do for you.