On 23 April 2026, the Council of the EU adopted its 20th package of restrictive measures against Russia – a landmark decision that, for the first time, introduces dedicated sanctions mechanisms targeting the realm of intellectual property.
The key change is the newly enacted Article 5sa of EU Council Regulation No. 833/2014. This provision fundamentally reshapes the compliance landscape by prohibiting European entities from engaging in any transactions with Russian legal persons listed in the newly established Annex LVI. threshold for inclusion on this blacklist is the use by a Russian entity of IP rights or trade secrets, owned by a Russian subsidiary, or licensed to a Russian entity that is controlled by an EU person, without the explicit the right holder’s consent under the Decree of the President of the Russian Federation No 122 of 15 February 2024, the Resolution of the Government of the Russian Federation No 380 of 27 March 2024, or any other similar basis (including a court order).
An important formal nuance. Strictly interpreting Article 5sa, if an EU entity owns intellectual property in Russia that it has not licensed to anyone and a Russian party simply uses it without consent, the formal conditions for applying the sanctions or for listing the infringer in Annex LVI may not be met. However, from a practical standpoint, a broad and purposive interpretation of the provision cannot be dismissed, which could result in the inclusion on the sanctions list of a Russian entity using a European entity’s intellectual property without a license.
The role of right holders. The activation of this new enforcement tool is contingent upon the proactive engagement of European IP owners. The mechanism imposes a clear duty on them: they shall report instances of unauthorized use of their IP in Russia to the competent national authorities of their respective EU member states. These national bodies, in turn, are responsible for escalating the matter to the European Commission.
Additional measures. In addition to the mechanism under Article 5sa, the 20th package aims to strengthen legal safeguards for right holders from what the EU characterizes as "unfair expropriation" within Russia. The package also introduces provisions to protect the intellectual property of European companies from lawsuits in third countries.
Thus, the essence of the new measure is not an absolute ban on the use of European intellectual property in Russia, it is, rather, a calibrated instrument of strategic pressure. Russian companies that rely on European IP under the Russian law or judicial rulings now face a stark choice: continued operation may lead to their inclusion on the EU sanctions list, resulting in a comprehensive freeze on all commercial and financial transactions with European entities.