(MENAFN) A study conducted by the IESEG School of Management has uncovered substantial circumvention of the European Union's (EU) sanctions on Russia through the use of third countries, as reported by Euractiv on Monday. Despite the European Union implementing 13 rounds of restrictive measures against Moscow in response to the Ukraine conflict, the study points to a significant evasion of sanctions, particularly concerning "high priority items" subject to export restrictions. These items include manufacturing equipment and electrical components with potential military applications.
The research indicates a notable increase in European Union exports of such restricted goods to countries like Turkey, the United Arab Emirates, Kazakhstan, and other nations considered "Kremlin-friendly." Specifically, from October 2022 through September 2023, these exports surged by EUR2.9 billion (USD3.2 billion), marking an increase of over 80 percent compared to the preceding twelve-month period. Simultaneously, European Union exports of similar goods to Russia saw a dramatic decline, dropping by USD3.5 billion, or more than 95 percent.
The IESEG report highlights a concerning trend where the reduction in European Union sales of advanced technology and dual-use items to Moscow is being compensated for by a sharp rise in exports of the same items to countries in West and Central Asia. According to Euractiv, the surge in purchases by third countries appears disproportionately large in comparison to local demand, raising suspicions that a significant portion of these goods may subsequently be rerouted to Russia.
As these findings shed light on the challenges in enforcing European Union sanctions and preventing unintended consequences, there is a growing need for the bloc to reassess and strengthen its measures to curb the circumvention of restrictions on high-priority items intended for military use.
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