Key data
| Regulation | Council Regulation (EU) 2026/1724, of 13 July 2026 |
|---|---|
| Modified regulation | Regulation (EU) 2023/2147 |
| Publication | 14 July 2026 |
| Entry into force | 13 July 2026 |
| Affected parties | European companies and financial entities with commercial or financial links to Sudan |
| Category | European Regulation |
| Year | 2026 |
| Applicable measures | Asset freezing and travel ban |
| Official source | EUR-Lex OJ:L_202601724 |
European companies with operations in East Africa or with Sudanese counterparties have a new compliance obligation as of 13 July 2026: to verify that none of their partners, clients or suppliers appear on the updated list of sanctioned parties under Regulation (EU) 2026/1724. Non-compliance is not a minor infraction — it can result in administrative and criminal sanctions in EU Member States.
This regulation modifies Regulation (EU) 2023/2147, which already established the framework of restrictive measures against actors undermining stability and political transition in Sudan. The 2026 reform allows updating the lists of designated parties and adapting measures to the evolution of the Sudanese conflict.
What does this regulation establish?
Regulation (EU) 2026/1724 reforms the EU sanctions framework on Sudan, in force since 2023. The two restrictive measures it can impose are:
- Asset freezing: all funds and economic resources belonging to designated persons or entities are blocked. No European entity can make funds available to them.
- Travel ban: natural persons included on the list cannot enter or transit through EU territory.
The 2026 modification introduces the ability to dynamically update the lists of sanctioned parties as the conflict in Sudan evolves, without needing to reform the base regulation each time. This means that lists can be expanded with new designations at any time, requiring companies to maintain a continuous monitoring process.
| Aspect | Regulation (EU) 2023/2147 (original) | Regulation (EU) 2026/1724 (modification) |
|---|---|---|
| Sanctions framework | Establishes restrictive measures against actors destabilizing Sudan | Maintains the framework; allows updating lists with greater agility |
| List updates | Required regulatory reform for each change | Allows adapting lists to conflict evolution in an agile manner |
| Applicable measures | Asset freezing and travel ban | Both measures are maintained |
Economic and operational impact
The impact is not only formal compliance: it has direct economic consequences for any company with exposure to Sudan.
- Immediate fund blocking: financial operators and banks have the legal obligation to block funds of any entity or person included on the list. Failure to do so constitutes an infraction.
- Review of existing contracts: if a Sudanese counterparty becomes designated after contract signature, the European company cannot execute payments or deliveries without incurring liability.
- Compliance costs: companies with operations in East Africa must implement or strengthen counterparty screening processes against EU sanctions lists, with the operational cost this entails.
- Criminal risk: non-compliance can result in administrative and criminal sanctions in Member States. The severity varies according to national legislation, but in Spain non-compliance with international sanctions can constitute a crime.
Who does it affect?
- European banking and financial entities with accounts, transfers or financial instruments linked to Sudanese counterparties.
- Export and import companies with commercial operations in Sudan or with partners in East Africa.
- Investment funds and asset managers with positions in companies or assets related to Sudan.
- Logistics, transport and energy companies with operational presence in the region.
- Insurance companies that cover risks of Sudanese counterparties.
- Compliance departments of any business group with subsidiaries or partners in East Africa.
Practical example
A Spanish energy sector company maintains an equipment supply contract with a Sudanese company. Following the publication of Regulation (EU) 2026/1724 on 14 July 2026, that Sudanese company appears on the updated list of designated parties.
From that moment on, the Spanish company cannot execute any pending payment or make new deliveries under that contract. Its bank, upon detecting the transfer to a sanctioned entity, has the obligation to block the funds. If the Spanish company executes the payment without verifying the list, it incurs non-compliance with Regulation (EU) 2026/1724, with risk of administrative sanctions and, depending on applicable Spanish legislation, also criminal sanctions.
The solution: implement an automated counterparty screening process against EU sanctions lists before executing any operation with Sudanese parties.
What should companies do now?
- Immediately review the sanctions lists: consult the updated official list on the EU Sanctions Map to verify if any Sudanese counterparty has been designated.
- Audit existing contracts and commercial relationships: identify all active contracts with Sudanese parties or with links to East Africa and cross-reference them with the sanctions list.
- Block funds if applicable: if a designated counterparty is detected, immediately block any pending transfer and notify the Compliance department and, if applicable, the competent national authority.
- Implement continuous screening: establish an automated process for verifying counterparties against EU sanctions lists before each operation, not just at the time of customer registration.
- Train the Compliance and operations team: ensure that teams managing international payments understand the verification obligation and the procedure in case of an alert.
- Document all verifications: maintain a record of checks performed as evidence of due diligence in case of a possible inspection.
Frequently asked questions
Which European companies are obligated to comply with Regulation (EU) 2026/1724?
All European companies and financial entities that maintain commercial or financial relationships with Sudanese persons or entities. It especially affects financial operators and banks, export and import companies with operations in Sudan, and any entity with links to actors in East Africa.
What happens if my company makes a payment to an entity that has just been sanctioned?
Non-compliance with Regulation (EU) 2026/1724 can result in administrative and criminal sanctions in Member States. Financial operators have the obligation to block funds of designated parties; if they fail to do so, they incur direct liability. The regulation entered into force on 13 July 2026, so any operation after that date with a sanctioned party is already a violation.
Where can I consult the updated list of persons and entities sanctioned by the EU in relation to Sudan?
The official list is published and updated on the EU Sanctions Map and in the Official Journal of the EU. It is recommended to set up alerts to detect new designations in real time, as Regulation (EU) 2026/1724 allows updating the lists in an agile manner without reforming the base regulation.
When did this modification of sanctions against Sudan enter into force?
Regulation (EU) 2026/1724 entered into force on 13 July 2026, one day before its publication in the Official Journal of the EU (14 July 2026). Verification and blocking obligations are enforceable from that date.
What is the difference between Regulation (EU) 2023/2147 and the new 2026/1724?
Regulation (EU) 2023/2147 established the original framework of sanctions against actors destabilizing Sudan, with asset freezing and travel ban measures. Regulation (EU) 2026/1724 modifies it to allow updating the lists of sanctioned parties in a more agile manner, adapting them to the evolution of the Sudanese conflict without needing to reform the base regulation on each occasion.
Official source
Consult the complete regulation in official source
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601724