EU Introduces New Derogations for Restricted Entities to Support Supply Chain Diversification

To support the diversification of supply chains for Union operators, the EU Council adopted Decision (CFSP) 2026/1333, which amends the restrictive measures related to actions undermining the territorial integrity, sovereignty, and independence of Ukraine. This decision introduces temporary derogations from asset freeze prohibitions for a specific entity (listed as entry number 692), allowing for the orderly wind-down of existing contracts and agreements concluded before April 23, 2026, provided these actions are completed by December 31, 2026. Furthermore, it permits the purchase of critical components from this entity to enable a transition toward alternative supply sources, with such payments required to be completed by March 16, 2027.