Ukrainian officials and allied leaders have called for a stronger system of international sanctions and accountability for violators.
Thousands of European companies and entrepreneurs use various loopholes through third countries and subsidiaries to enter the Russian market. They bypass international sanctions with only a few bureaucratic steps, so restrictions should be strengthened. The Kyiv Post writes about it.
“Information about sanctions violations by such companies is easy to find through open source investigations. But enforcement of these rules and penalties for those who strategically evade sanctions are lacking. Officials pointed out and Ukrainian leaders of allied countries these gaps. They called for a stronger system of international sanctions and accountability for violators,” the article said.
In particular, the 12th package of sanctions adopted by the EU at the end of last year eases restrictions on some industries instead of strengthening them. For example, the import of Russian steel slabs by European countries was initially planned to be completely stopped until October 2024 in accordance with the 8th package of sanctions. But the 12th package extends the period in which EU companies can find alternative producers until 2028, with an import limit of 8.5 million tons, the publication points out.
“The actual volume of imports of Russian slabs in the period from October 2022 to September 2023 has been 32.5% lower than the established quota But, despite this, the European Commission has not begun to change the quota for the second time. The quotas in the new sanctions actually exceeded recent import levels due to lobbying by European producers: European consumers lobbied for the permitted quantities. of supplies of Russian slabs that would allow them to continue operating within current business models for a long time,” the publication wrote.
This situation also has a negative impact on the competitive situation in the European market: rolling mills operating on Russian semi-finished products will remain in a more advantageous position compared to joint producers. Other economists point to the problems of enacting sanctions rules caused by lobbying in some powerful industries.
“There are strong players in the market who are generally against these sanctions and this strengthens all the discussions – they want to protect their ability to buy cheap goods from Russia,” Yulia Pavitskaya, an expert on sanctions at the Kyiv School of Economics. told the Kyiv Post.
It is known that in January-June 2024, the European Union imported 2.87 million tons of metallurgical raw materials of Russian origin. Import costs for related products amounted to 1.4 billion euros.
Earlier, PACE deputies called on the EU to tighten sanctions against Russia’s metallurgical industry, as it continues to earn billions for the war in Ukraine. However, through manipulation and blackmail, the Kremlin managed to extend the quotas for Russian slabs for another four years, although it was supposed to end in September 2024. This will allow the Russian Federation to import more than 8 billion euros worth of products in the EU.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.