Brussels: In the first nine months of 2023, sanctioned goods totaling €450 million found their way from the European Union into Russia, with a significant portion originating directly from EU member states, underscoring glaring loopholes in the sanctions framework.
This revelation stems from reports by Bloomberg, citing sources within the European establishment.
Internal EU data reveals a decline in direct official trade of most sanctioned items between the EU and Russia following the onset of the full-scale conflict in Ukraine. However, there has been a notable surge in the export of these goods to third-party nations.
Bloomberg highlights Turkey, the United Arab Emirates, Serbia, China, as well as Russia’s neighboring countries Uzbekistan, Kazakhstan, Kyrgyzstan, and Armenia as key conduits for such exports.
Uncovering Sanctions’ Blind Spots: Regulatory Challenges and Exceptions
The article sheds light on how sanctioned goods continue to infiltrate the Russian Federation, pointing to deficiencies within the European Union’s sanctions architecture. Sources cited by Bloomberg suggest that member states and corporations may not be exerting sufficient effort, whether knowingly or inadvertently, to curtail trade with the aggressor nation.
EU data further indicate that subsidiaries and subcontractors of European companies operating abroad are manufacturing sanctioned items, subsequently channeling them to Russia through intermediaries.
Moreover, EU regulations provide certain exemptions for the export of dual-use commodities to Russia, justified by humanitarian needs, health crises, natural disasters, and medical purposes.
Analysis of Bloomberg’s findings reveals that, from the onset of Russia’s invasion of Ukraine until December 2023, several EU member states issued permits for such exports totaling over €560 million. Conversely, applications amounting to more than €2 billion were denied.
Earlier reports also unveiled that hundreds of millions of pounds’ worth of British machinery and equipment continue to find their way to Russia through South Caucasus and Central Asian countries, including Kyrgyzstan, Armenia, and Uzbekistan.
