Article | 10-10-2022 | Web editor

Sanctions against Russia

Sanctions against Russia have been in place 1 August 2014, following Russia’s annexation of Crimea and its failure to implement the Minsk agreements. Then it concerned measures for goods in the oil and gas sector and an arms embargo, as well as sanctions for dual-use goods. These are goods that can be used for ‘ordinary’ purposes and by civilians, but also for military purposes.

Expansion of existing packages

The existing measures of 2014 were tightened and broadened in early 2022 when Russia recognised the separatist areas of Donetsk and Luhansk and then invaded Ukraine. Tightened means that more and more cases fall under the existing sanctions. For example: until the end of February 2022, exporting dual-use goods was prohibited if the end-use or end-user was military. After that, dual-use goods could no longer be exported at all. Broadened means that there are more and more sanctions for other goods. Several ‘sanction packages’ have already been announced. It is currently an enormous package that includes a lot, from maritime to aviation, but also luxury goods, for example.

Exception for humanitarian goods

Some goods can still be exported. These are often things needed by the Russian population, for example, medicines and food, the so-called humanitarian goods. Sometimes a licence is required to trade in these types of goods.

Purposes of prohibition of goods

There are all kinds of goods on the ‘prohibited list’, all with different purposes. In the case of weapons and dual-use goods, the purpose is clear: to ensure Russia has no material with which to wage war. In other cases, such as wood and gold, the aim is to hit the Russian economy as hard as possible. This by preventing them from earning a lot of money to finance the arms industry. Russia, for example, is one of the largest exporters of gold worldwide. A ban on the import of gold takes away an important source of income for the Russian state. The ban on luxury goods, such as yachts, is intended to thwart the Russian elite. These are often the rich, powerful oligarchs who support Putin. Other goods are on the list because of political choices.

Goods that can no longer be imported from Russia

The sanctions list includes:

•  crude petroleum and refined petroleum products
•  coal and other solid fossil fuels
•  gold, including jewellery
•  steel and iron
•  wood, cement and certain fertilisers
•  fish, crustaceans and shellfish, such as caviar
•  spirits, such as vodka.

Goods that can no longer be exported to Russia

The sanctions list includes:

•  advanced technology, such as quantum computers and advanced semiconductors, electronics and software
•  certain types of machines and means of transport
•  petroleum refining goods and technology
•  equipment, technology and services for the energy sector
•  goods and technology for the aerospace and space industries, such as aircraft
•  goods and technology for the maritime shipping industry
•  goods and radio communication technology for the maritime shipping industry
• dual-use goods, such as software for drones, drones themselves and encryption devices
•  luxury goods, such as expensive cars, yachts, watches, jewellery and clothing.

Sanctioned companies and individuals

The sanctions regulations include lists of sanctioned companies, organisations and individuals. If they are on a list, nothing can be exported there. This concerns individuals such as Putin and oligarchs like Abramovich and the companies they own. But also, for example, other wealthy businessmen who actively support the invasion of Ukraine, and parliamentarians of the Duma.

Belarus and other areas

The European Union has also adopted sanctions against Belarus for its involvement in the invasion of Ukraine. Restrictions apply to both the import and export of a wide variety of goods. This mainly affects the trade in wood and oil. Sanctions are also in place for Donetsk and Luhansk. The Netherlands hardly trades with these areas, so it has little effect on Dutch trade and Customs.

Sanctions on services

Sanctions mainly concern goods, but to a small extent also services, including technical services. For example, someone who knows everything about a certain weapon and goes to Russia to train people to work with it. We also check for that. Not at the border, but at the companies themselves. We carry out checks at companies that can provide this type of service to Russia. For example, by checking the administration.