are European companies circumventing Russian sanctions?

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War in Ukraine: are European companies circumventing Russian sanctions?

European exports have surged since the Russian invasion of Ukraine. Are companies circumventing sanctions against Russia?

(franceinfo)

European exports have surged since the Russian invasion of Ukraine. Are companies circumventing sanctions against Russia?

On social networks, Internet users are ironic about the European Union sanctions against Russia, which are allegedly circumvented by certain companies, notably by passing “by a satellite country like Kyrgyzstan”. European exports have actually surged since the Russian invasion of Ukraine, with an increase of 41% from Europe to Turkey, 240% to Armenia, and 887% to Kyrgyzstan. At the same time, these countries have increased their exports to Russia.

“It is a chain of intermediaries which will pass through third countries, and (…) we never know which houses in this chain are in good faith, which are unaware of the final destination, and which are those which participate from the outset to an explicit and voluntary strategy of circumvention”analyzes Éric Dor, doctor in economic sciences and director of studies at IESEG.

Washing machines reused for the war industry?

Among the products which have seen their export increase to these neighboring countries of Russia, industrial machines, road vehicles and even household appliances. How to explain this increase? If Russia needs washing machines for its civilian population, some of the goods could serve the needs of the war industry, according to many military experts.

Certain electronic components of a washing machine could indeed be reused in Russian weapons design. “They need robust electronics, which can withstand shocks, speed changes, vibrations, (…). You have all that in your washing machine”, explains Stéphane Audrand, weapons consultant and reserve officer. When contacted, the European Commission said it had established a priority list of sanctioned products, including this type of electronic circuit.


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