The European Commission has published guidance to help European businesses properly identify, assess and understand the potential risks of sanctions evasion and how they can avoid it.
The European Commission (EC) stated that this guidance aims to provide a general overview of what EU operators should do when carrying out due diligence as required by current EU legislation.
“According to EU law, EU operators are required to exercise due diligence to ensure that their business partners do not exceed EU sanctions when trading with third countries,” the Commission’s press release emphasizes.
In fact, the recommendations presented are a practical guide explaining the sequential steps that EU operators should follow when conducting a strategic risk assessment.
“This should reduce the impact on sanctions evasion plans as much as possible. Guidance is also provided to European operators most exposed to this risk on the application of enhanced due diligence, in particular by providing best practices for assessing business partners, transactions and goods” – stated in the instructions.
The recommendations also include a list of warnings (so-called red flags) that concern business partners and customers and are indicators of warnings about possible risks at the stage when a commercial relationship with a new trading partner is just beginning.
The report states that the European Union has implemented unprecedented restrictive measures in response to Russia’s war against Ukraine and Belarus’ involvement in that war.
“Faced with the scale of these sanctions, Russia is implementing increasingly complex plans and methods to circumvent these measures. Using such complex methods, Russia is trying to obtain goods that its military-industrial complex desperately needs to continue its war of conquest against the people of Ukraine.” ,” the statement states.
But as Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, stressed, the EU’s support for Ukraine is unwavering.
“EU sanctions are having a real impact on Russia’s ability to fight, and so Russia is desperately looking for ways to get around them. The ways in which Russia will get around our restrictions are becoming increasingly complex and opaque. So this practical guide addresses the concerns of European exporters.” We help them recognize it and reduce the risk of evading sanctions,” the European official testified.
Let’s remember this the other day Focus He wrote that the EU has introduced new sanctions against Russians: Russians will not be able to enter EU countries with their own cars and smartphones. The EC also plans to introduce taxes on profits from frozen assets of the Russian Federation.
However, on August 30, The Financial Times reported that Russia still imports significant amounts of liquefied gas into the EU and that the Russian economy is recovering despite the sanctions.
Source: Focus
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