Brussels will carefully punish other countries for circumventing sanctions against Russia

The European Union is afraid to impose secondary sanctions against persons from third countries that help Russia circumvent sanctions restrictions. This was reported to Politico on June 23 by a diplomatic source in the EU structures. According to him, Brussels does not want to go too far with secondary sanctions, as a tough course could provoke a number of countries to work more closely with China and Russia. “We don’t want to take the risk of immediately resorting to punishments that carry huge risks of sending countries, especially in Central Asia, into the hands of [президента России Владимира] Putin. And this is exactly the opposite of what we wanted,” said the European diplomat.

In EU law, there has recently been a mechanism by which sanctions can be imposed for violating sanctions. According to Politico, first of all, Kazakhstan and Armenia, which are accused of helping Russia, are at risk of facing it. According to the European Union, Astana and Yerevan allow the supply of sanctioned goods through their territories, thus undermining the sanctions pressure of Brussels. EU countries have agreed that restrictions against third countries can be imposed if they do not follow Western sanctions or if they cannot explain the unexpected surge in trade with Russia in goods that are prohibited from supplying.

However, the EU is unlikely to actively apply this mechanism frequently. A number of countries of the association, primarily Germany, believe that the active use of secondary sanctions does not correspond to the diplomatic interests of the EU and will lead to the degradation of relations between third countries and Brussels. The European Commission (EC) responded to fears of this kind. Clauses were introduced into the sanctions bills, according to which the introduction of restrictions against third countries helping Russia is declared a last resort. First of all, it is necessary to make diplomatic efforts towards these countries or offer them technical assistance that will allow them to comply with the EU sanctions regime. If such actions fail, the European Commission must provide evidence of this and only then impose secondary sanctions.

EU legislation provides for several options for secondary sanctions, said Ivan Timofeev, director general of the Russian International Affairs Council. The amendments introduced in the 11th package of anti-Russian sanctions provide for measures against countries that help Russia bypass restrictions, only as a “last resort”. Along with this, there are grounds for blocking sanctions against individuals who provide assistance to Russia. So far, Timofeev adds, there are no representatives of third countries on the corresponding sanctions list, but the EU still has the mechanism itself.

The EU has become a hostage to its own sanctions policy, says Sergey Glandin, a lawyer and partner at the NSP law firm. Brussels’ attempts to cut off all routes for the supply of semiconductors and dual-use and military goods to Russia naturally led to the emergence of a mechanism of secondary sanctions at the legislative level. The amendments of the 11th package provide for the creation of a list of countries that help Russia circumvent sanctions. This, adds Glandin, puts the EU in a precarious position. If Brussels decides to include the Central Asian states in this list, a change in their attitude towards the European Union for the worse will certainly follow. So far, this list is empty and the EU, by the very fact of its existence, sends a signal to third countries about the need for tighter control over legal entities that help Russia bypass sanctions, the expert concludes.