EditEU targets 18 member states for not criminalising sanctions violations, including Russia measures
The countries have two months to respond, complete their transposition and notify the Commission, or face a punitive procedure
The European Commission initiated on 24 July infringement proceedings against Bulgaria and 17 other member states for failing to fully transpose a Directive criminalising violations of EU sanctions, including those imposed in response to Russia’s aggression against Ukraine.
The European Commission decided to open infringement procedures by sending a letter of formal notice to 18 Member States (Belgium, Bulgaria, Czechia, Germany, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Hungary, Malta, Austria, Poland, Portugal, Romania and Slovenia) for failing to notify measures fully transposing the Directive on the criminalisation of the violation of Union restrictive measures (Directive (EU) 2024/1226).
The Directive establishes common rules harmonising the definition of criminal offences and penalties for the violation of Union restrictive measures. It seeks to prevent the circumvention of EU sanctions, including those adopted following the Russian aggression against Ukraine. Harmonising national criminal law in this field is expected to facilitate the investigation and prosecution of violations of EU sanctions in all member states, making EU restrictive measures more effective.
Member states had until 20 May 2025 to transpose the Directive into their national law. To date, the 18 member states cited failed to communicate full transposition of the Directives to the Commission. The Commission is therefore sending letters of formal notice to the member states concerned, which now have two months to respond, complete their transposition and notify their measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.
The EU’s push for uniform sanctions enforcement underscores the need for cohesive action to strengthen restrictive measures. Disparities in national penalties risk creating “courts of convenience” in countries with weaker enforcement, undermining the EU’s sanctions regime. The directive equips judges with robust punitive options, including imprisonment and substantial fines, to deter violations.
When a EU member state fails to transpose an EU Directive into national law, it can face significant legal and financial consequences, including multi-million euro fines.
The process typically begins with a Letter of Formal Notice, requesting the member state to explain the non-compliance. If the issue persists, the Commission issues a Reasoned Opinion, setting a deadline for compliance. If the member state still fails to act, the case may be referred to the Court of Justice of the European Union (CJEU).
If the CJEU finds a member state guilty of non-compliance, it may impose financial penalties which can include lump-sum fines, a one-time penalty reflecting the duration and severity of the infringement, or daily penalties as long as the member state remains non-compliant after the CJEU ruling.
For example, in 2019, the CJEU fined Poland €2 million plus €25,000 per day for failing to comply with a Directive on the protection of animals used for scientific purposes. Similarly, in 2020, Germany faced a proposed fine of €18 million for incomplete transposition of the Fourth Anti-Money Laundering Directive.
Despite successive waves of EU sanctions, including 17 packages implemented since Russia’s invasion of Ukraine in February 2022, Russia’s economy has demonstrated resilience, avoiding significant collapse and sustaining its war effort. High oil prices, increased military spending, and trade redirection to non-sanctioning countries like China, India, and Turkey have cushioned the impact, with Russia’s GDP growing by 3.6% in 2023 and 2024, outpacing the EU’s growth, according to the International Monetary Fund.
Sanctions have reduced Russia’s trade with the EU by over 60%, restricted access to critical technologies, and targeted its shadow fleet, yet Russia has adapted through circumvention tactics like rerouting goods via third countries and expanding its shadow fleet to maintain oil exports, which reached 4.68 million barrels per day in June 2025, per the International Energy Agency. These workarounds, coupled with limited enforcement in some EU states and reluctance from countries like Hungary to fully sever ties, have allowed Russia to maintain sufficient economic stability to continue its military operations in Ukraine.
Updated: July 25, 2025 - 05:45
