EU blasts member states for allowing sanctioned goods to reach Russia

The EU is demanding that member states' governments urgently stop the illegal flow of goods to Russia, calling on Brussels to close sanctions loopholes.

As reported by Politico, in a letter sent to the EU’s leaders on Wednesday, which was seen by Politico, the European Commission emphasised to countries the need for "immediate, concerted and firm action by all of us".

With patience for violators running out, EU finance chief Mairead McGuinness and trade chief Valdis Dombrovskis, who signed the letter, said they would soon share "detailed information" on the ways in which companies are evading sanctions. They said they would hold meetings with leaders by mid-April to discuss the measures to be taken.

While the sanctions themselves are agreed upon at the EU level, national governments are responsible for implementing them under the supervision of the European Commission.

Sanctioned goods from the EU enter Russia via non-EU countries, which then re-export them, as well as through subsidiaries of European companies which operate outside of its jurisdiction to supply the proscribed products, the letter said.

The items in question are usually goods and technologies that are not weapons themselves, but can be used for military purposes and end up bolstering Russia’s war effort.

The Commission is studying the possibility of creating an EU body to monitor compliance with sanctions, effectively taking this function over from national governments.

According to an official close to the talks, who spoke on condition of anonymity, the idea is becoming popular and could be on the agenda of European Commission President Ursula von der Leyen if she is re-elected.

The letter states that exports of banned goods from the EU to non-EU countries have increased from €3 billion before the invasion of Ukraine to €5.6 billion by mid-2023. This "extremely worrying" increase compensates for the loss of legal trade in these goods with Russia before the war.

The letter urges governments to "hold accountable EU operators that have been actively undermining EU sanctions, wherever they are active" and to deter companies from exploiting sanctions loopholes.

McGuinness also advises member states to contact companies involved in the production of sanctioned goods, and encourage them to more thoroughly check their supply chains for compliance with EU sanctions rules.

It is said in the letter that national authorities should share information on non-EU companies and individuals who may be involved in exploiting sanctions loopholes, and "exercise particular vigilance" surrounding sanctions exemptions that could make the problem worse.

The media had previously reported that the EU would not be adding new import bans to its 13th tranche of sanctions against Russia.

As was stated before, despite calls from some EU countries to ban more Russian exports such as aluminium, the European Commission would propose a package that it hopes will result in minimal pushback among member states so that it can be adopted quickly.

The sanctions are expected to be adopted before the second anniversary of Russia's full-scale invasion of Ukraine on 24 February.

The Council of the European Union completed the process of adopting the 12th package of sanctions against Russia on Monday, 18 December.