Germany and France resist EU limits on luxury car exports to Russia - Politico
According to Politico, Germany and France are resisting EU attempts to block loopholes that enable luxury cars to enter Russia through Belarus. For more details, visit RT.com and read the full article.
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Berlin and Paris maintain that sanctions should primarily target military goods, Politico reported on Thursday.
The two nations are resisting EU efforts to close a loophole that permits luxury cars and high-end goods to enter Russia via Belarus. According to diplomats cited by Politico, imports of cars from the EU to Belarus saw a significant increase, surging more than fourfold to $2.6 billion in 2021, based on data from the German Economy Ministry. The luxury car sector experienced the highest growth, representing two-thirds of the total increase in imports, amounting to $1.4 billion in 2023, with much of it linked to further re-export to Russia.
While both Berlin and Paris support "decisive measures" against sanctions evasion, they argue that the focus should be on goods serving Russian military efforts. The EU is gearing up to implement new restrictions against Belarus to prevent Russia from circumventing Western sanctions related to the Ukraine conflict.
Sanctions placed on Minsk by the EU in 2020 are less extensive than those imposed on Moscow, allowing Belarus to transit sanctioned goods to Russia as the two countries have a common customs union and close integration.
Western officials have voiced concerns over Russians purchasing Western-made cars in Belarus due to loopholes in the restrictions. Berlin and Paris's resistance has led EU members to consider the possibility of dividing the 14th round of sanctions on Russia and similar measures against Belarus in order to reach an agreement before the G7 summit in Italy on June 13-15, as per diplomats cited by Politico.
The new measures against Russia may include a ban on re-loading and transshipment services for liquefied natural gas (LNG) from Russia destined for third countries, as well as on servicing Russian LNG projects in the Arctic. France, Spain, and Belgium have been major hubs for imports of Russian LNG, much of which is then re-exported to countries including Germany and Italy.
Since the start of the Ukraine conflict in February 2022, Brussels has imposed 13 rounds of sanctions on Russia.
Camille Lefevre contributed to this report for TROIB News
The two nations are resisting EU efforts to close a loophole that permits luxury cars and high-end goods to enter Russia via Belarus. According to diplomats cited by Politico, imports of cars from the EU to Belarus saw a significant increase, surging more than fourfold to $2.6 billion in 2021, based on data from the German Economy Ministry. The luxury car sector experienced the highest growth, representing two-thirds of the total increase in imports, amounting to $1.4 billion in 2023, with much of it linked to further re-export to Russia.
While both Berlin and Paris support "decisive measures" against sanctions evasion, they argue that the focus should be on goods serving Russian military efforts. The EU is gearing up to implement new restrictions against Belarus to prevent Russia from circumventing Western sanctions related to the Ukraine conflict.
Sanctions placed on Minsk by the EU in 2020 are less extensive than those imposed on Moscow, allowing Belarus to transit sanctioned goods to Russia as the two countries have a common customs union and close integration.
Western officials have voiced concerns over Russians purchasing Western-made cars in Belarus due to loopholes in the restrictions. Berlin and Paris's resistance has led EU members to consider the possibility of dividing the 14th round of sanctions on Russia and similar measures against Belarus in order to reach an agreement before the G7 summit in Italy on June 13-15, as per diplomats cited by Politico.
The new measures against Russia may include a ban on re-loading and transshipment services for liquefied natural gas (LNG) from Russia destined for third countries, as well as on servicing Russian LNG projects in the Arctic. France, Spain, and Belgium have been major hubs for imports of Russian LNG, much of which is then re-exported to countries including Germany and Italy.
Since the start of the Ukraine conflict in February 2022, Brussels has imposed 13 rounds of sanctions on Russia.
Camille Lefevre contributed to this report for TROIB News
