Cooperation between the United States and the European Union on preventing Russian sanctions evasion has broken down, Süddeutsche Zeitung reported on 27 May. According to a cited leaked internal report from Germany’s Foreign Ministry, the EU’s Special Representative for Sanctions, David O’Sullivan, told a closed-door meeting of the EU Foreign Affairs Council on 20 May in Brussels that there is “no joint outreach” with the US anymore. He also noted that G7 cooperation on the matter had “lost momentum.”
The EU, US, and G7 began sanctioning Russia in 2014 after its illegal annexation of Crimea and sharply escalated restrictions following the full-scale invasion of Ukraine on 24 February 2022. Sanctions target Russia’s energy, defense, banking, and tech sectors, aiming to cut its war-financing capacity and punish widespread human rights violations and attacks on Ukrainian sovereignty. The sanctions regime may collapse under US President Donald Trump, who seeks to resume trade with Russia and is pushing for Kyiv-Moscow negotiations, allegedly to end the ongoing Russia–Ukraine war.
The leak suggests that European hopes for a united front against Russia’s sanctions circumvention are rapidly eroding. While a new 18th package of EU sanctions is being prepared in response to renewed Russian attacks on Ukrainian cities, the lack of US participation raises doubts about global enforcement capacity.
Trump’s presidency and Chinese role in sanctions evasion
Süddeutsche Zeitung notes that some experts suggest that US President Donald Trump “would rather resume doing business with Russia today than tomorrow.” Normalization with Russia “will mean an end to the global sanctions regime,” Green MEP Sergey Lagodinsky warned. German MP Johann Wadephul warned that the new EU sanctions “will be financially painful for Russia” but acknowledged doubts about future American involvement, despite stating that “there will be a clear reaction from the West” to Russia’s attacking Ukraine instead of negotiating peace.
China plays a key role in sanctions evasion, the leaked report finds. EU sanctions commissioner David O’Sullivan told the EU Foreign Affairs Council that “around 80%” of such cases are tied to China, which denies involvement. Ukraine’s Foreign Intelligence Chief of Ukraine Oleh Ivashchenko said Chinese firms are supplying essential materials to 20 Russian arms factories.
EU cracks down on third countries, Russia’s shadow fleet, and eyes Russia’s energy and banking sectors
Despite the breakdown in US-EU coordination, the EU has reportedly achieved some success in blocking war-related exports via third countries. Export channels through Armenia, Serbia, Uzbekistan, and India have seen disruptions. However, Kazakhstan, Türkiye, and the UAE remain problematic transit points, the document notes.
Efforts against Russia’s so-called “shadow fleet” — tankers and cargo ships used to bypass sanctions — have seen some progress. According to O’Sullivan, multiple nations have stripped Russian-linked ships of their flags following EU pressure. However, he urged further measures against ports used frequently by these vessels, including those in Türkiye, India, and Malaysia.
The next EU sanctions package is expected to hit Russia’s energy and financial sectors, though Russia’s ally Hungary opposes these measures and has shown “no willingness to compromise,” the document adds.