The European Union is considering expanding sanctions against Russia to include foreign subsidiaries of European companies, News.Az reports citing the Financial Times .
The goal is to limit the flow of sensitive goods into the Russian military industry, says a statement by the EU Special Representative for Sanctions David O'Sullivan.According to O'Sullivan, a significant portion of products entering Russia via China are manufactured by subsidiaries of Western companies in Southeast Asia. The EU intends to focus its efforts on stopping such supplies.
He noted that this initiative has met with resistance from businesses, as it could affect production in third countries that have not joined the EU sanctions regime. The European Commission is assessing the impact of such a move.
O'Sullivan also spoke about the EU's efforts to track financial flows that ensure the supply of goods to Russia through third countries. In July, the EU gave itself the power to impose sanctions on financial institutions outside its territory that facilitate trade with Russia.
"The US threatened one bank in China, one in Turkey and one in the UAE. And the mere threat of sanctions was enough to make these financial institutions stop all operations," O'Sullivan noted.
It was previously reported that many Turkish banks stopped servicing transactions with Russia and Belarus, fearing secondary sanctions. In this regard, transactions in national currencies are now carried out only by Emlak Katılım, which recently increased its commission for transit payments.
Earlier, the International Monetary Fund postponed consultations with Russia.
