Russia’s continued circumvention of EU economic sanctions is a problem and has major implications for the country’s ability to continue to wage war in Ukraine through oil exports and, as a direct result of evading sanctions, to maintain its supply of goods, technology and money.
“The sanctions regime is now so complicated, with 14 sanctions packages on over 1,200 pages, that it is difficult for companies to find their way around it,” says Senior Advisor Aage Borchgrevink from the Norwegian Helsinki Committee.
At Arendal Week, he took part in a debate on the economic sanctions against Russia with representatives from the Norwegian Ministry of Foreign Affairs, the Kongsberg Group, the law firm Wikborg Rein and the Police Security Service (PST).
Grey area
Sanctions evasion activities are activities that do not violate sanctions in themselves, but are aimed at or result in a sanctions violation. Such activities become illegal and punishable evasion activities when the fault requirement is met, explains Wikborg Rein.
Attorney Håkon Stalheim Meldahl from the law firm Wikborg Rein at Arendal Week. (Photo: Trine Jonassen)
For example, it is prohibited to transfer certain types of technology to Russia directly or indirectly. However, if a company’s technology enters Russia through third parties, it can be difficult to determine whether this is an indirect transfer in violation of the sanctions or an illegal circumvention of the sanctions.
Many countries have not imposed sanctions against Russia and countries that trade with them can break the sanctions.
Not enough done
“Now it is also a violation of sanctions not to do enough to address it. the circumvention of sanctions by introducing special anti-circumvention requirements, such as requirements for contractual provisions to prevent further exports of certain goods to Russia. This has made things very complicated,” commented lawyer Håkon Stalheim Meldahl from the law firm Wikborg Rein.
Aage Borchgrevink believes that not enough is being done to stop Russia’s human rights violations in Ukraine.
“A comprehensive economic boycott, like the one Norway has imposed on South Africa, is the next step to weaken Russia and end the war. If the intention is to end the war in Ukraine, it must be easier for all sides. The sanctions are having an effect, but I fear there will be further sanctions packages,” Borchgrevink told High North News.
Now there
And a comprehensive economic boycott would be the answer?
“Yes, like in South Africa in the 80s. That was effective.”
