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.
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Key Facts
- Fact 1: The announcement means the UK government has now sanctioned more than 3,400 individuals, entities, and ships under the Russia sanctions regime since 2022, bringing the number of designations to 500 this year alone.
- Fact 2: The new EU sanctions package – the bloc’s 21st – introduces extensive transaction bans and asset freezes targeting Russian financial institutions, energy actors, crypto platforms, and entities linked to Russia’s military.
- Fact 3: Its CEO, Patrick Pouyanne, said the company earns about $400 million a year from selling liquefied natural gas from Russia’s Yamal LNG plant.
- Fact 4: He added that other income comes from dividends on TotalEnergies’ 20% ownership stake in Yamal LNG and its 19.4% stake in Yamal's parent company, Novatek.
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 should broaden their sanctions campaign by increasing scrutiny of European businesses that remain economically exposed to Russia. The new UK Foreign Secretary, Ed Miliband, announced his first Russia sanctions package, targeting six Russian banks, six shadow fleet tankers and four Russian companies importing materials believed to support Russia’s war in Ukraine, including tantalum and niobium. Separately, in response to recent Russian attacks on Ukraine’s economic infrastructure, the EU sanctioned five individuals linked to Russia’s military-industrial complex.
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