EU sources revealed to Reuters on Wednesday that the European Commission is set to propose sanctions targeting ships transporting North Korean military equipment to Russia and tankers violating the G7 price cap on Russian oil.
Latest Sanctions
This proposal marks the 14th package of sanctions against Moscow in response to its invasion of Ukraine. Allegations have surfaced suggesting North Korea’s involvement in supplying weapons to bolster Russia’s military efforts.
The US reported in February that North Korea had dispatched over 10,000 containers of munitions since September. Additionally, the Commission aims to sanction oil tankers in the “shadow fleet” transporting Russian oil beyond the G7 oil price cap. Approximately 40 companies, including Russian entities procuring military equipment and third-country firms supplying Russia with electronics and semiconductors with military applications, are expected to be added to the list of sanctioned entities.
These third-country companies hail from the UAE, Kyrgyzstan, Turkey, and China, having sold EU and US-origin equipment to Russia. The Commission is currently engaging in informal discussions with EU member states this week before presenting its proposal to the Council for debate.
Russia’s Evasion of Sanctions
A report from Sayari, a financial intelligence company, revealed in February that Russian banks may be evading sanctions on banknotes by trading gold in the UAE and Turkey.
Since the commencement of the Ukraine War, Western countries have imposed various sanctions on Russia. These sanctions hinder Moscow from accessing Western currencies. Consequently, finding buyers for gold, the country’s second-most valuable export, allows for bulk payments in US dollars and euros outside of the traditional global banking system.
Turkey and the UAE, among others, are yet to ban the import of Russian gold, which allows them to act as intermediaries for Russia’s foreign currency needs. Accordingly, the report analyses how Russia evaded international sanctions following its invasion of Ukraine by implementing a cash-for-gold trade scheme.
EU to Propose Sanctions on Ships Transporting North Korean Military Equipment to Russia: Reuters
This proposal marks the 14th package of sanctions against Moscow in response to its invasion of Ukraine.
April 25, 2024
IMAGE SOURCE: Mikhail Metzel/AFP/Getty ImagesRussian President Vladimir Putin and North Korea’s leader Kim Jong Un visit the Vostochny Cosmodrome in the Amur region in September 2023.