EU considers imposing sanctions on Russia’s neighbors

The European Union can impose sanctions on countries that help Russia circumvent the restrictions imposed on it, writing The Telegraph, citing an EU document.

The publication’s material says that “European capitals are discussing plans to introduce trade sanctions against countries that help Moscow evade punitive measures.”

According to The Telegraph, EU dignitaries drew attention to the growth in exports of dual-use goods to Central Asian countries. We are talking in particular about washing machines and used cars. European officials fear that these technologies will enter Russia by circumventing trade restrictions.

According to The Telegraph, EU leaders want to warn representatives of Central Asian countries of the consequences of aid to circumvent sanctions. If evidence of re-export of goods to Russia is found, trade restrictions may ensue, the article says. At the same time, the measures may affect not only the countries of the Central Asian region, but also any other state, notes The Telegraph.

Re-export and parallel import

Western countries imposed large-scale sanctions against Russia because of the military operation in Ukraine. In particular, the EU has adopted 10 sanctions packages since the outbreak of hostilities. At the same time, in March, the EU acknowledged that the possibilities to impose restrictions on anti-Russian sanctions were practically exhausted.

After the outbreak of hostilities in Ukraine, Western companies began to leave Russia en masse or suspend their activities in the country. In this regard, Russian President Vladimir Putin in the summer of 2022 legalized parallel import. This mechanism regulates the importation of clothing, shoes, household appliances and other goods without the permission of the copyright holder. Since then, imports of these products from Russia’s neighbours, including Turkey and Kazakhstan, have skyrocketed.

In March, representatives of logistics companies told Kommersant FM radio station that Turkish customs had started blocking the transit of sanctioned goods entering Russia from Europe and the United States through parallel imports. In turn, the authorities of Kazakhstan have also decided to strengthen the control of re-exported goods by using an online tracking system for imported and exported products. According to Eurasianet, it is scheduled to launch from April 1, 2023.

Bloomberg in early February writing that US authorities are concerned about the growth of US goods exports to Russia and are putting pressure on Turkey and the United Arab Emirates because of their trade relations with Moscow.