ua en ru

UAE may tighten export control on goods entering Russia: Bloomberg reports

UAE may tighten export control on goods entering Russia: Bloomberg reports Illustrative photo (Photo: Getty Images)
Author: Daria Shekina

The United Arab Emirates is considering the possibility of implementing export controls that could harm Russia's military machinery, according to Bloomberg.

The discussion revolves around the potential introduction of licenses for the export of various goods, including chips and other components that are subject to sanctions from the United States and the European Union and are used by Russian military forces in the war against Ukraine.

It is noted that if this system is implemented as envisioned, it could lead to the revocation of licenses for dual-use goods intended for combat purposes. This could potentially harm the Kremlin's ability to sustain its military machine.

Russia has been using the UAE to circumvent sanctions

"Russia has so far been able to get around some of the trade restrictions imposed on it by the US, UK and Europe by routing banned goods via third countries such as the UAE, Turkey and some Central Asian nations that have not introduced sanctions themselves," the material states.

Over the past 18 months, the UAE, already a global logistics and trading hub, has experienced a sharp increase in imports of technologies like semiconductors and advanced electronics from Europe and the United States. Many of these items have been discovered in Russian weaponry in Ukraine.

In recent months, Western officials have increased their demands for the UAE to stop serving as a gateway for Russia, enabling it to evade restrictions.

Western countries want to influence the UAE

The Western sanctions authorities from the United States, the United Kingdom, and the EU visited the UAE earlier this month to express their concerns, particularly regarding the country's role as a key transshipment point for components aiding Russia's war effort.

While so-called dual-use goods are part of Russia's trade with the UAE, any actions hindering its ability to utilize this specific trade route are significant. This will make efforts to source critical components more costly and complex.

How they may tighten control over goods

According to some sources, the issuance of export licenses may support the UAE's efforts to be removed from the Financial Action Task Force (FATF) gray list in early next year. This list includes countries that are not doing enough to detect illegal money flows.

The UAE has its own import and export control list, which includes hundreds of chemical and non-chemical items. Bloomberg reports that they plan to expand it and include 45 categories of goods from the US and the EU. The program will require companies re-exporting these items to provide evidence that they are intended for civilian use.

Russia's attempts to circumvent sanctions

Previously, it was reported that a company in Helsinki was suspected of violating sanctions. According to investigators, the company ordered products from around the world and exported them to Russia.

Russian airlines have also been purchasing spare parts worth at least $1.2 billion since May of last year through June 2023, bypassing sanctions. This amount may not account for all deliveries.