Trade with Russia remains lucrative, but companies face risks

Since the invasion of Ukraine, the European Union has implemented 21 rounds of sanctions to restrict Russia's access to vital industrial goods. Despite these measures, some businesses continue trading with Russia, often utilizing intermediaries in countries like Kazakhstan, Kyrgyzstan, and Armenia to circumvent export bans. Legal experts warn that while these trade activities remain highly lucrative, they pose severe risks to companies and individuals, including the forfeiture of earnings, criminal prosecution, and potential prison sentences of up to six years.

Experts note that businesses have a significant responsibility to justify their trade dealings when products fall under export restrictions. However, enforcing these sanctions proves challenging due to limited investigation capacity and the difficulty of tracking goods once they cross borders. While sanctions have not yet ended the conflict, they have successfully increased the cost and difficulty for Russia to acquire necessary resources, as illicit supply chains involve expensive intermediaries. Ultimately, the ongoing circumvention of these rules continues to undermine the intended economic pressure on the Russian war effort.