EU sanctions and the Russia embargo: the provision ban and dual-use
Alongside goods embargoes, EU sanctions target individual persons and entities. Whoever is on a sanctions list has their funds frozen, and no one may make funds or economic resources available to them. This provision ban is broad: it applies indirectly, through third parties, and the notion of economic resources covers almost any asset. For companies with international partners it is an underestimated criminal risk.
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Asset freezes and the provision ban.
The EU person-specific sanctions regulations, for example the Russia regulation, Regulation (EU) 269/2014, order two things: the funds of listed persons and entities are frozen, and it is prohibited to make funds or economic resources available to them, directly or indirectly. Economic resources are to be understood very broadly: goods, services, rights, anything that can be used to obtain funds. A breach is criminal through section 18 of the Foreign Trade and Payments Act (Außenwirtschaftsgesetz, AWG).
Indirect provision, the real danger
The most dangerous point is indirectness. What is prohibited is not only the direct supply to a listed person, but also provision through third parties where the economic benefit ultimately reaches the listed person. This concerns payments to intermediary companies, deliveries to entities controlled by listed persons, and whole contract chains. A business that does not know the ownership and control structure of its partner can breach the provision ban unknowingly.
Goods embargoes and dual-use
In parallel with person-specific sanctions, the EU imposes goods embargoes under Regulation (EU) 833/2014, including on dual-use goods and on certain high-value items. Export bans turn on the exact goods classification and destination, which is where compliance and criminal exposure meet. Cross-border trade with a China dimension needs the goods, the recipient and the route checked together, not in isolation.
Circumvention and front companies
The regulations contain an express anti-circumvention prohibition: it is forbidden to participate, knowingly and intentionally, in arrangements whose object or effect is to circumvent the restrictions. Routing goods or payments through a third country, or interposing a front company, does not cure the breach; it can deepen it. Section 18 AWG reaches these structures.
Screening and due diligence
The practical answer is disciplined screening: checking partners and beneficial owners against the lists, understanding control structures, and documenting the checks. Where trade touches sanctioned regions, the routing and the end recipient matter as much as the immediate contract partner. Good documentation is also the best defence if an allegation later arises.
Criminal exposure under section 18 AWG
A breach of embargoes and export bans is punishable under section 18 AWG and can carry a custodial sentence. In serious cases, in particular where the conduct is commercial or committed as a gang, the sentencing range rises to up to ten years. Alongside the sentence stand corporate fines against the company (section 30 of the German Administrative Offences Act, OWiG) and confiscation of the proceeds of the offence.
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Sanctions and the provision ban, briefly explained.
What is the provision ban?
Under EU person-specific sanctions, such as Regulation (EU) 269/2014, the funds of listed persons are frozen and no one may make funds or economic resources available to them, directly or indirectly. Economic resources are understood very broadly. A breach is criminal through section 18 AWG.
Can we breach sanctions without intending to?
The provision ban applies indirectly, through third parties and contract chains. A business that does not know the ownership and control structure of its partner can breach it unknowingly. Screening beneficial owners and control structures is the practical safeguard.
What penalties does section 18 AWG carry?
A breach can carry a custodial sentence, and in serious cases, in particular commercial or gang conduct, up to ten years. Corporate fines under section 30 OWiG and confiscation of proceeds can follow alongside.
This page gives a general overview and does not replace advice on the individual case. Legal position: 2026.
Related pages.
See also our work on export control and sanctions (AWG) and customs criminal law and smuggling.
A provision allegation in the room?
We examine ownership and control, indirect provision and intent, and defend against the allegation.
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