France and Netherlands push EU to close sanctions loophole that allows Russia to acquire military goods & tech

The EU
The EU

France and the Netherlands want the EU to sanction any financial institution in the world that helps the Russian military pay for goods or technology used to produce weapons, Reuters reported on May 14.

A draft resolution has already been prepared, Reuters said.

The proposed resolution reads:

"The Netherlands and France propose to introduce a legal framework that prohibits transactions with financial institutions in Russia or other third countries if the Council determines that these entities participate in operations that significantly support the Russian military by facilitating the export of goods necessary for Russia's military effort, such as dual-use goods and technology, or goods listed in Annexes VII and XL of the Regulation."

Ambassadors of EU states will discuss this proposal on May 15 as part of the 14th sanctions package against Russia.

The EU expects the new package to be finalized in June.

The EU has been trying to prevent Russia from circumventing the previous 13 sanctions packages since it started its full-scale invasion.

Existing sanctions include a ban on the sale of certain dual-use goods and technologies that can be utilized for both civilian and military purposes in Russia.

Read also: Why Western sanctions don’t affect Russia’s appetite for war

This ban could become a "powerful incentive" for financial institutions in the Middle East, Turkey, or even China not to participate in agreements to supply Russia with dual-purpose goods subject to EU sanctions.

The European Commission would likely coordinate similar sanctions with the U.S., making them even more effective, Reuters wrote, citing EU officials.

The proposal could be opposed by Hungary on political grounds, or perhaps by Germany, which might not want to jeopardize close business ties with China.

Beijing has been supplying Russia with components that could be used to make weapons, the European Commission said last month.

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Read the original article on The New Voice of Ukraine