Europe’s Russia Sanctions Have a Major Blind Spot
Over the last two years, the EU and UK have emerged as leading actors in imposing sanctions on Russia. But people like Maria Demertzis, Professor at the European University Institute in Italy, have raised questions around the effectiveness of the sanctions campaign, as European institutions continue to operate profitable subsidiaries in the country with little scrutiny. UK and EU regulators…
Europe's sanctions on Russia present a significant blind spot, as European institutions continue to operate profitable subsidiaries in the country with little oversight, according to Professor Maria Demertzis of the European University Institute in Italy. While the UK and EU have implemented sanctions targeting six banks, tanker ships, and companies involved in Russia's war in Ukraine, critics argue that these measures lack sufficient scrutiny.
The UK Foreign Secretary, Ed Miliband, recently unveiled a sanctions package targeting six Russian banks, six tankers, and four companies importing materials supporting Russia's war in Ukraine. The EU has also sanctioned five individuals linked to Russia's military-industrial complex. Despite these actions, it remains unclear if European capital is truly disconnected from the Russian economy.
Companies like TotalEnergies have maintained stakes in Russia's largest LNG plant, Yamal, generating significant annual revenue from liquefied natural gas sales. However, the extent to which European capital remains connected to Russia and the adequacy of regulatory oversight remain key concerns for policymakers seeking to disengage economically from the country.
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