EU plans to ban transit of many goods through Russia

The European Union intends to propose a ban on the transit of many goods through Russia in the 11th package of sanctions currently being prepared in Brussels.

This became known to Bloomberg.

The ban on transit will apply to numerous technologies and other goods, including several types of vehicles, the agency's sources said. However, not all goods will be banned from transiting through Russia on their way to third countries.

Moscow has managed to circumvent restrictions on a number of technologies that have been sanctioned. Trade data previously reported by the agency indicate that modern chips and integrated circuits made in the EU and other countries are being shipped to Russia through third countries, including Turkey, the United Arab Emirates, and Kazakhstan.

According to other reports, some EU countries bordering Russia, such as Finland and Estonia, have seen a sharp increase in trade with Central Asian countries, and the goods they trade often transit through Russia. Some goods remain in Russia or are re-exported from third countries to Russia.

Poland, Estonia, and Lithuania have been pushing the EU to ban the transit through Russia of goods and technologies that could be used by Russia's military, aviation, and space industries, as well as goods that could contribute to Moscow's industrial capacity.

The new package of proposed sanctions may also target tankers and ships that do not include navigation systems that allow tracking of their movements.

The main focus of the package of measures being developed by the European Commission will be on closing loopholes and addressing the problem of circumvention of existing restrictions, including by companies in third countries.

The package of measures is unlikely to be directed against Rosatom, Russia's state-owned nuclear energy company, the sources said.

Author - Olena Madiak, 24/04/2023