Bloomberg: The EU is discussing a new mechanism for sanctions against countries that help Russia circumvent restrictions

Author:
Anna Kholodnova
Date:

The European Union (EU) is discussing a new mechanism for sanctions against third countries that help Russia circumvent Western restrictions.

Bloomberg writes about it.

According to sources, the publication will especially focus on those states that cannot explain the sharp increase in trade with Russian key goods or technologies.

A new mechanism will be developed to keep countries from helping Russia and suppress trade channels available to Moscow. If it doesnʼt work, the EU could later impose targeted additional restrictions on key goods.

The European Union also plans to expand the sanctions and ban the transit of many goods through the Russian Federation, Bloomberg interlocutors add. EU member states will be able to create two lists — one will contain third countries with the help of which Russia circumvents sanctions, and the other will contain prohibited goods.

The new mechanism must be approved by the national governments of the 27 EU countries, and decisions on which countries and goods to include in both lists will be made unanimously at the level of the European Union. According to Bloombergʼs sources, these measures are unlikely to target China first — for now, they will affect the countries of Central Asia and Russiaʼs closest neighbors.

Also, the new package will facilitate the introduction of sanctions against companies in third countries that circumvent EU sanctions.

The European Union is also looking to expand bans on cars and modern technology used by Russia in the war in Ukraine, industrial goods, iron and steel, and processed products from sanctioned metals. Prohibitions may also apply to licenses issued for the production of these goods.

New restrictions await trailers. Russian trucks attach their cargo to European cars at the border with the EU. Block wants to prevent this. In addition, the EU is likely to detail the rules for already existing entry bans at EU ports, as well as ship-to-ship transhipment guidelines. Dozens of individuals and legal entities will also be added to the list of restrictions.

  • Russia can still supply numerous sanctioned goods through third countries. The import of semiconductors, integrated circuits and other technologies from Kazakhstan, the UAE, Turkey, and China to Russia has recently increased sharply.
  • In the new package of sanctions, Ukraine insisted on a full energy embargo, an extension of the oil embargo on the northern branch of the Druzhba gas pipeline, and a ban on the import of liquefied gas from Russia. In addition, Ukraine called for the introduction of sanctions against Rosatom, the suspension of Russiaʼs rights in the IAEA, and a complete ban on Russian propaganda in EU countries.