Germany Calls for Stricter Control of Companies Evading Sanctions Against Russia

The German government must take stricter measures against German companies that circumvent European sanctions against Russia by operating through other countries, said the country’s Minister of Economy Robert Habeck on Saturday. Since Moscow began its war with neighboring Ukraine more than 13 months ago, the European Union has issued ten packages of sanctions against Russia, including extensive trade restrictions.

Habeck stated that when it comes to combating the illegal circumvention of these restrictions, Germany can learn from Denmark. Danish customs carefully analyzes trade flows and customs data in search of anomalies, the German minister said.

– If such anomalies arise, for example, large quantities of certain goods that previously went to Russia and are now suddenly being delivered in almost the same quantity to a third country – that is a reason for verification – said Habeck. In such a situation, Danish authorities seek an explanation from the responsible company, he added.

German foreign trade law allows for similar procedures, but the government does not sufficiently utilize these provisions, according to Habeck.

– If used purposefully, we can strengthen the joint influence of our authorities – he said.

At the end of February, Habeck also proposed concrete steps for better combating sanction evasion. The plans are currently being discussed at the level of the German government and with Berlin’s EU partners, he said.

The Ministry of Finance responded to Habeck’s comments by stating that the responsibility lies with Habeck’s own Ministry of Economy. A spokesperson added that the responsibility for the problems ‘does not lie with customs, but with the Federal Office for Economic Affairs and Export Control in its own area of responsibility’.

The Ministry of Economy, on the other hand, stated that customs is also competent under the Foreign Trade and Payments Act. If customs data reveals anything suspicious in companies, customs can conduct an investigation and may require the submission of business documents. This instrument must be used ‘more strongly and precisely’, the ministry emphasized.

Analysis shows that there are noticeable changes and ‘circumvention cases’ in general commodity flows such as electronic devices, cars, engines, and machine parts.

– Customs is responsible for general commodity flows – stated Habeck’s ministry.