David O'Sullivan is a busy senior civil servant. As the European Union's (EU) special envoy responsible for implementing sanctions against Russia, the experienced Irishman is responsible for ensuring that Russia does not circumvent them. Yet it has been able to do so with some success since the first package came into force at the start of the war against Ukraine in February 2022.
Brussels has not managed to put an end to all trade with Russia, despite sanctions on oil and coal, strategic components, companies, business leaders and politicians. New sanctions have been added month by month. At the beginning of March, a 13th package covered 200 entities and individuals, without focusing on a particular sector, following the ban on diamond trading on January 1. The EU also protested against the death of Vladimir Putin opponent Alexei Navalny on February 16 in an Arctic prison camp.
But gas, oil and uranium are still traded, even indirectly. Not to mention certain metals, a lucrative business for Moscow, although sanctions have reduced the value of trade from €23 billion in 2022 to €14 billion in 2023.
On Friday, April 12, the US and the UK announced a ban on imports of Russian-produced aluminum, copper and nickel, as well as restrictions on OTC derivatives trading. Crucial to their trade, the London and Chicago metal exchanges will no longer be able to accept them.
"This will prevent the Kremlin funneling more cash into its war machine," assured Jeremy Hunt, UK chancellor of the exchequer. Sanctions are having an effect, according to Russian customs figures: In 2023, Russia's merchandise exports to Europe fell by 68%, and by 28% worldwide, proof that trade with countries refusing sanctions has not compensated for the loss of the European market.
Yet every day brings a new twist. Just as the Treasury was announcing the metals embargo, US officials revealed that China was supporting Moscow's arms production through the sale of machine tools, electronic components and drone and missile technology. The two countries trade copper disguised as scrap metal, revealed Reuters. Furthermore, the flow of goods imported from the West via Turkey, the Persian Gulf and Central Asia are re-exported to Russia to support its war effort. It would take 10 O'Sullivans to monitor all this traffic.