German Economy Minister is in favour of increasing responsibility for circumventing sanctions against Russia

The German government should take tougher measures against German companies that circumvent EU sanctions against Russia by doing business through other countries, the German Economy Minister thinks.

Source: German Economy Minister Robert Habeck, as reported by European Pravda with reference to DPA

Quote: Last but not least, we owe that to the people of Ukraine," Habeck said. 

Details: The European Union has imposed 10 sanction packages against Russia, including broad trade restrictions, since Moscow launched the full-scale invasion of Ukraine more than 13 months ago.

Habeck said that Germany could learn from Denmark when it comes to combating illegal circumvention of these measures. According to the German minister, Danish customs authorities are very carefully analysing trade flows and customs data for anomalies.

"If such anomalies are found, for example, a large amount of certain goods that used to go to Russia are now suddenly to be delivered to another third country in almost the same amount – that's a reason for checking," said Habeck.

In that case, he added, the Danish authorities demand an explanation from the responsible company.

German foreign trade law allows for similar procedures, but according to Habeck, the government does not make enough use of these provisions.

"If this is used in a targeted manner, we can strengthen the joint clout of our authorities," the minister said.

In late February, Habeck, who also serves as Vice-Chancellor of Germany, proposed concrete steps to better combat sanctions evasion. According to him, these plans are currently being discussed in the German government and with Berlin's EU partners.

The Ministry of Finance responded to Habeck's comments, saying that the Ministry of Economy, which is headed by Habeck himself, is responsible for it.

"The tasks, which Mr Habeck rightly drew attention to, do not lie with the customs, but with the Federal Office for Economic Affairs and Export Control in its own sphere of responsibility," said the spokesman of the ministry.

Background: The European Union and its allies are increasingly focusing on preventing the circumvention of already imposed sanctions. The US is also increasing pressure on Türkiye and the United Arab Emirates to limit trade flows with Russia.

Bloomberg reported that Russia appears to be successfully circumventing the sanctions of the European Union and the Group of Seven (G7) in order to obtain the most important semiconductors and other technologies for its war in Ukraine.

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