What Russia doesn’t get from the EU, the country gets from the East. Until now. The EU has now agreed on a new package of measures that targets Russian partner companies in China and North Korea.
According to the Munich Ifo Institute, Russia is circumventing a large part of the sanctions on Western goods via former Soviet republics, China and Turkey. As the research institute announced on Wednesday, Armenia, Kazakhstan, Uzbekistan, Kyrgyzstan and the NATO state exported 50 times more goods to Russia that are critical for the Russian economy or important for the military industry in 2022 than they exported general goods to all destination countries in 2019 exported.
“This indicates a very high probability of evasion of sanctions,” explained Ifo foreign trade expert Feodora Teti. The Ifo looked at trade data for sanctioned goods, including vehicles, ball and roller bearings. The evaluation is based on an analysis of Russian trade flows. Accordingly, Russian imports of important economic goods and military-important components from these neighboring regions have multiplied in recent years.
Since March 2022, eight percent of all Russian imports of goods that are important for Russian weapons systems and military development have come from the CIS countries. When it comes to goods that are critical for the Russian economy, three percent of all imports to Russia come from the CIS countries. A large number of the former Soviet republics have come together in the Commonwealth of Independent States.
Semiconductors from Hong Kong and data carriers from Kazakhstan
The EU has specified in two lists which economically important goods (economically critical goods) and militarily important components (common high priority items) may no longer be exported to Russia. The first list includes, among other things, machines, engines, cranes, shovel loaders or concrete mixers, to name just a few examples. With the second list, the EU sanctions the export of electronic, electrical and mechanical components that the Russian defense industry needs for the construction of rockets or attack helicopters. This includes, for example, semiconductors, memory chips, navigation technology, but also electrical connectors, ball bearings and optical components.
According to the study, Russia is now importing a lot of semiconductors from Hong Kong. According to the authors, in Central Asia Kazakhstan plays the main role in circumventing sanctions. Russian imports of data processing equipment from Kazakhstan, among other things, have increased dramatically since 2022.
What is particularly politically explosive is the authors’ assessment that Turkey plays a role in circumventing the sanctions. The NATO state mainly exports goods from the first list, including mechanical and electrical machines.
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New sanctions against Russia from the EU and the USA
On the second anniversary of Russia’s attack on Ukraine, the European Union has imposed new sanctions against Russia. For the first time, the sanctions also affect companies on the Chinese mainland that supply military material to Russia. EU Commission President Ursula von der Leyen emphasized that the EU was “further restricting Russia’s access to drones” with the new punitive measures. In addition, a total of around 2,000 people responsible for the Ukraine war would then be on the European sanctions list. According to EU foreign policy chief Josep Borrell, almost 200 names will be added. In addition, the Europeans have tightened their pace when it comes to evading sanctions.
According to diplomats, new export bans are planned. Among other things, European companies are banned from trading with three companies from mainland China that supply military-use goods to Russia.
The punitive measures also affect the North Korean defense minister, who is said to have supplied missiles to Moscow. Entry bans and asset freezes in the EU are being imposed against him and other North Korean officials. North Korean leader Kim Jong Un visited Russian President Vladimir Putin in September. Both sides apparently also agreed on closer military cooperation.
The 13th sanctions package is one of the EU’s “most comprehensive” to date, the Belgian Presidency said after the fundamental agreement of the permanent representatives of the member states. The formal decision in the written procedure is therefore expected before the second anniversary of the Russian attack on Ukraine on Saturday.
The USA also wants to announce new punitive measures against Moscow on Friday over the death of Kremlin critic Alexei Navalny. In doing so, the United States would “hold Russia accountable for what happened to Mr. Navalny,” National Security Council spokesman John Kirby said on Tuesday.
Federal Foreign Minister Annalena Baerbock (Greens) also announced sanctions in connection with Navalny’s death on Monday at a meeting with her EU colleagues in Brussels. According to diplomats, however, the EU measures will not be ready for decision until March.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
