“Sanctions against Russia are working: they have a negative impact on Russia’s economy and its source of income, which “feeds” its military capabilities and war machinery in the war of aggression against Ukraine.
Russia’s access to dual-use goods and technologies that can be used for military purposes has been significantly reduced. While Russia is actively looking for ways to circumvent sanctions, it becomes slower, more complex and more expensive to do that. Oil and gas exports are one of Russia’s main sources of income. The Shadow Fleet plays a major role in providing Russia with trade opportunities.
It also poses significant environmental risks, operating outside international rules and without adequate insurance, and does not meet technical standards. More needs to be done and efforts stepped up in cooperation with international partners – the United States, the United Kingdom and others – to sustain the sanctions pressure on Russia, to effectively enforce the sanctions imposed and to take more effective measures to prevent circumvention of sanctions through third countries.
In the context of sanctions circumvention, the role of the financial sector is also brought to the fore, and additional restrictive measures need to be considered in that direction too,” Baiba Braže and David O'Sullivan stressed after the meeting.
Russia’s oil export is still bringing a major contribution to the country’s economy, for the most part ensured by the so called “shadow fleet”: 89% of shipping by the fleet of “shadow” tankers is related to the transportation of Russian oil products.
The officials underlined that Russia, faced with the negative impact of sanctions, is looking for more and more new ways to circumvent sanctions and is propagating a narrative that sanctions are not working.
It is therefore necessary to constantly assess the situation, analyse the data, obtain evidence to strengthen measures for preventing the circumvention of sanctions through third countries, as well as to substantially assess the range of exceptions to be applied. New restrictions on trade with Russia and additional restrictive measures in the fields of energy, trade, finance, disinformation should also be considered.
“Security in Europe is closely linked to Ukraine’s fight on the battlefield; therefore, the priority for all of us is further military support for Ukraine and a comprehensive constraining of Russia. Stronger sanctions, including against countries that support Russia in its war of aggression against Ukraine, are also a powerful weapon in degrading Russia’s capabilities. We must every effort to weaken Russia’s economy that allows it to finance its war machinery. We are still doing too little right now. By the end of the year, we are planning to advance the next round of EU sanctions against Russia,” – Baiba Braže said.
As regards the circumvention of sanctions on land, Baiba Braže recalled that 80% of all export declarations passing through Latvia are originating in other EU Member States. Strict controls on goods export in line with the EU sanctions framework are the responsibility of the customs authorities of all EU Member States. Special Envoy O’Sullivan commended the Latvian customs service for its work on control and enforcement of EU sanctions against Russia at the EU’s external border.
Both the officials welcomed the restrictions set on 8 October to combat Russia’s hybrid threat, and the EU Directive taking effect on 19 May on criminalizing the violations of EU sanctions, which is to be used to improve our national laws and regulations and make it possible to apply administrative penalties for lesser offences.
David O’Sullivan has arrived in Latvia on a working visit to exchange views with the Foreign Ministry experts on current situation in the field of sanctions and to participate in the Northern European regional security and foreign policy forum, The Rīga Conference 2024 taking place at the Latvian national History Museum in Riga from 17 to 19 October 2024.
