Photo of Emanuel Ghebregergis

Emanuel Ghebregergis

Emanuel Ghebregergis advises clients on international trade controls, white collar, and Business and Human Rights (BHR) matters under both European and German laws. His trade controls practice has included advising clients in a wide variety of industries on UN, EU and German sanctions and export controls matters. Emanuel has also advised clients on a range of compliance issues and has also been involved in the review and assessment of trade controls compliance programs.

Emanuel’s BHR practice focuses on advising organizations across industry sectors on national and international standards for human rights and environmental due diligence in their supply chains. He has particular expertise advising clients on the new German Human Rights and Environmental Supply Chain Due Diligence Law.

Prior to joining Covington, Emanuel worked for the United Nations Office for Coordination of Humanitarian Affairs, where he dealt with human rights law as well as humanitarian law questions in response to complex emergencies.

Contact:Read more about Emanuel GhebregergisEmail

On 12 March, the European Commission responded to the imposition of new U.S. tariffs on EU steel and aluminum imports.  The Commission pledged to implement “swift and proportionate countermeasures on U.S. imports into the EU,” signaling a firm stance while leaving the door open for future negotiations.

Announced Countermeasures under the Enforcement Regulation

The EU’s response is made up of two measures:

  1. The reinstatement of 2018 and 2020 EU additional ad valorem duties on certain U.S. imports (“Old Rebalancing Measures”):  In 2018, the first Trump Administration introduced 25% and 10% tariffs on EU steel and aluminum exports, respectively, under Section 232 of the Trade Expansion Act of 1962.  As a response, the EU adopted a list of additional ad valorem duties on certain U.S. imports.  In 2020, the first Trump Administration extended the tariffs to cover certain steel and aluminum derivative products.  The EU then adopted a broader list of additional ad valorem duties on certain U.S. imports.  Adopted under the Enforcement Regulation, these Old Rebalancing Measures were designed to maximize political pressure on the first Trump Administration to rescind its tariffs.  They were suspended in 2023 following an agreement with the Biden Administration.

    As the suspension of the Old Rebalancing Measures expires automatically on 31 March, the Commission will reimpose them.  These Old Rebalancing Measures cover approximately €8 billion worth of EU imports from the U.S., intended to be proportionate to addressing the economic damage inflicted by the U.S. tariffs, and concern products ranging from boats to bourbon to motorbikes.

  2. New EU measures under Article 5 of the Enforcement Regulation (“New Rebalancing Measures”):  In response to the fresh U.S. tariffs impacting another €18 billion of EU exports, the Commission now plans to roll out new or additional ad valorem duties under Article 5 of the Enforcement Regulation (see the suggested product list).  A stakeholder consultation is open for comment from 12–26 March, gathering input from affected industries.  Following this, the Commission will draft an implementing act and consult Member States through the comitology procedure (as provided by the Enforcement Regulation).  The implementing act is scheduled to take effect mid-April, bringing the total value of U.S. exports potentially impacted by the Old and New Rebalancing Measures to €26 billion.

Continue Reading EU’s Reaction to New U.S. Tariffs on Steel and Aluminum

On January 10, 2025, the U.S. Department of the Treasury and U.S. Department of State intensified sanctions against Russia with new measures targeting Russia’s energy sector. According to the Treasury Department’s press release, these measures are intended “to fulfill the G7 commitment to reduce Russian revenues from energy” and “substantially increase the sanctions risks associated with the Russian oil trade.”

The new U.S. sanctions include a determination by the U.S. Department of the Treasury authorizing the imposition of property-blocking sanctions against any person who is determined by the Treasury Secretary or Secretary of State (in consultation with one another) to operate or have operated in the Russian energy sector, and a determination issued by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) prohibiting—effective February 27, 2025—the provision of “petroleum services” from the United States or by a U.S. person to any person located in Russia. In addition, OFAC and the U.S. Department of State collectively designated for property-blocking sanctions more than 400 individuals, entities, and vessels from various countries involved in Russia’s energy sector, including two of Russia’s most significant oil producers and exporters—Public Joint Stock Company Gazprom Neft (“Gazprom Neft”) and Surgutneftegas, along with more than two dozen of their subsidiaries. The designations included more than 180 vessels, many of which are part of Russia’s “shadow fleet” of vessels involved in the trade of Russian oil, as well as several Russian energy executives, oil traders, oilfield service providers, and financial and insurance entities associated with Russia’s energy sector. The designations also covered two active Russian liquefied natural gas (“LNG”) projects and a Russian oil project.

On January 15, 2025, the U.S. Department of the Treasury and U.S. Department of State designated or re-designated under additional sanctions authority nearly 250 individuals and entities for property-blocking sanctions, including actors based in China.

OFAC also issued multiple general licenses related to the above designations, including a general license authorizing until February 27, 2025, transactions ordinarily incident and necessary to the wind down of transactions involving Gazprom Neft and Surgutneftegas, their designated subsidiaries, and entities that they own 50 percent or more, directly or indirectly, individually or in the aggregate, subject to certain conditions. In addition, OFAC revoked a general license that had authorized transactions with certain vessels subject to U.S. property-blocking sanctions due to their ownership, and amended two existing general licenses. One of these amended general licenses, General License 8L (which supersedes General License 8K), significantly narrows the scope of permissible energy transactions involving certain blocked financial institutions to include only wind-down transactions until March 12, 2025.Continue Reading New U.S. and UK Sanctions, Including Related to Russia’s Energy Sector

On 24 June 2024, the Council of the European Union (the “Council”) adopted a new package of economic sanctions against Russia. This 14th package of sanctions introduces a broad range of new prohibitions, including new export and import sanctions, new services restrictions, new sanctions designations and further measures targeting the Russian financial and energy sectors. The 14th package also includes measures relating to the circumvention of existing EU-Russia sanctions, including the imposition of a new, affirmative obligation for EU companies to address diversion and circumvention risks both within their own operations as well as the operations of their non-EU based subsidiaries.  

Finally, the new Russia measures expand the powers of courts within Member States to hear damages claims arising from the actions of Russian companies related to “sanctions implementation and expropriation”.

The new EU measures were adopted shortly after the United States and the United Kingdom adopted new Russia related export controls and sanctions, which we summarize in this alert.

Separately, on 30 June 2024 the EU passed a broad new set of sanctions relating to Belarus, including various measures intended to bring the EU-Belarus sanctions more closely in line with similar Russia-related measures.

The EU’s 14th Package of Sanctions Targeting Russia

Asset-freezing Designations

Council Implementing Regulation (EU) 2024/1746 designates additional individuals and entities to the EU asset-freezing list. The new designations target the Russian military sector but also include entities—and owners and senior managers of companies—operating in other sectors of the Russian economy, such as Russia’s largest shipping company, Sovcomflot, and OJSC Ural Airlines.Continue Reading EU Imposes Additional Sanctions Against Russia and Belarus

On 23 June 2023, the Council of the European Union (the “Council”) adopted a new package of economic sanctions against Russia. In addition to new asset-freezing designations, this eleventh package of sanctions includes new trade, transport and financial restrictive measures.

In recent weeks the UK has implemented various amendments to its existing sanctions regimes targeting Russia and Belarus, including the expansion of the UK’s Belarus-related sanctions regime to include certain restrictions previously introduced with respect to Russia and restrictions on the provision by UK persons of certain legal services.  The UK has also amended a number of General Licenses applicable to these two sanctions regimes and introduced new General Licenses, and updated aspects of its sanctions-related guidance, as detailed below.

Summary of New EU Russia Sanctions

Asset-freezing Designations

Council Implementing Regulation (EU) 2023/1216 designates additional individuals and entities to the EU asset-freezing list. The new designations include Russian government and military officials as well as Russian IT companies and the two Russian banks, MRB Bank and CMR Bank, which operate in the non-government controlled Ukrainian territories of Donetsk, Luhansk, Kherson and Zaporizhzhia.

Council Regulation (EU) 2023/1215 broadens the listing criteria upon which specific designations can be made under EU sanctions against Russia, to include, inter alia, the significant frustration of EU sanctions as a basis for designation. The regulation also introduces new derogations, including a derogation for the winding down of a Russian joint venture co-owned with the designated individual Alexey Alexandrovits Mordashov as well as a derogation allowing the disposal of certain types of securities held with specified listed entities.Continue Reading EU and UK Adopt New Sanctions Against Russia