Russia Sanctions: Mandatory “No Re-Export to Russia”-Clause

For several years, it has been crucial for individuals active in the aviation sector to be familiar with the sanctions imposed on Russia and the obligations established therein. The ever-changing nature of these obligations can make it difficult to keep track of them.

One new provision, in particular, should not be overlooked by aviation professionals: Article 12g of Regulation 833/2014. This provision mandates that, as of 20 March 2024, when selling, supplying, transferring, or exporting aircraft and jet fuel to a non-EU country, exporters must contractually prohibit re-exportation to Russia or for use in Russia. Additionally, exporters must ensure that the respective agreements include “adequate remedies” in case of a breach of this no re-export clause.

This means that every aircraft sale and purchase agreement, unless exempt under Article 12g, must now include language prohibiting the re-export of the sold aircraft to Russia or for use in Russia.

Additionally, if an exporter becomes aware that their third-country counterpart breaches the no re-export clause, they must inform the competent authority of the member state where they are resident or established.

No re-export clauses are not required in cases of exports to partner countries listed in Annex VIII of Regulation 833/2014, namely: the USA, Japan, the UK, South Korea, Australia, Canada, New Zealand, Norway, and Switzerland. Furthermore, this obligation does not apply to the execution of contracts concluded before 19 December 2023 until 20 December 2024 or until their expiry date, whichever is earlier.

Although exporters are free to choose the appropriate wording for a no re-export clause, the latest version of the FAQs concerning sanctions, published by European Commission, contains a template that parties are free to use.

Don´t hesitate to contact our Aviation Team to learn more about aviation related Russia sanctions in Austria and the European Union.