German minister calls for tougher response to sanctions evasion

The German government must take harsher measures against German companies that circumvent EU sanctions against Russia by doing business via third countries, according to Economy Minister Robert Habeck.

“We owe this not least to the people in Ukraine,” Habeck told Germany’s Funke media group in comments published on Saturday.

Since Moscow began its full-scale invasion of neighbouring Ukraine more than 13 months ago, the European Union has issued 10 sanctions packages against Russia, including wide-ranging trade restrictions.

Habeck said that when it comes to the fight against illegal circumvention of these measures, Germany could learn from Denmark. Danish customs authorities analyse trade flows and customs data very closely for anomalies, the German minister said.

“If such anomalies appear, for example a large quantity of certain goods that previously went to Russia is now suddenly set to be delivered in pretty much the same quantity to another third country, that’s a reason to take a look,” Habeck said.

In such a case, he added, Danish authorities request an explanation from the responsible company.

German foreign trade law allows for similar procedures, but the government is not making sufficient use of the provisions, according to Habeck.

“If this is used in a targeted way, we can strengthen the joint clout of our authorities,” he said.

At the end of February, Habeck, who also serves as Germany’s vice-chancellor, proposed concrete steps to better combat sanctions evasion. The plans are currently being discussed within the German government and with Berlin’s EU partners, he said.