Sanctions against Russia bypassed via neighboring countries

Sanctions against Russia are reportedly being circumvented by newly established companies and some Dutch multinationals, which have significantly increased goods shipments to Russia’s neighboring countries like Kazakhstan, Turkey, and Kyrgyzstan over the past two years. This was revealed in research by Statistics Netherlands (CBS) and the University of Groningen.

The study focused on suspicious trade routes through Russia’s neighboring countries. Following the imposition of sanctions in February 2022, Dutch exports to Russia plummeted, while exports to countries like Kyrgyzstan, Armenia, Kazakhstan, and Turkey surged.

This suggests these countries are used as intermediaries to channel goods to Russia. Recent legal cases support this, including the conviction of a Russian Dutchman in October for using Photoshop to falsify documents and rerouting goods through Kazakhstan, Kyrgyzstan, and Uzbekistan.

Data from CBS and the University of Groningen shows that trade with these countries increased significantly in 2022 and 2023. Notably, over 800 new market entrants, often small, young companies, have begun exporting goods primarily to Kazakhstan, Kyrgyzstan, or Mongolia, likely acting as intermediaries for sanctioned goods.

Source: NOS

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