Systematize Enforcement Of Russia Sanctions, Analyst Urges West

As the ground war in Ukraine continues, an economic offensive with Russia is under way. Western governments have united during the last week to enforce broad sanctions on the Russian economy, its businesses, and their leaders. Western retailers have pulled back too. But how effective are sanctions? BBC business correspondent Simon Browning asked.

Photo Insert: Experts say there are loopholes in sanction enforcement.

Blocking Russian vessels alone in this scenario may not be enough as many Russian businesses use transport that is licensed and registered in other countries, such as Cyprus, Hong Kong, or The Bahamas. Experts say this is a loophole in sanction enforcement.

The rule of law is important here, because on what grounds would you block a vessel in line with Russian sanctions that is flagged in Cyprus or another country?

“An enormous amount of due diligence would also need to be applied to every vessel movement and what the vessels are carrying. This would require huge amounts of enforcement, which sanctions experts say is substantial and complicated,” Browning added.

A spokesman for the Department for Business, Energy & Industrial Strategy said the sanctions apply to ships that are Russian owned, operated, controlled, registered, or flagged.

He added: "Ministers are exploring options to further reduce the already small amount of imports we do get from Russia and we continue to urge Europe to put in place plans to end their dependence on Russian gas."

Julian Bray, editor-in-chief of international shipping newspaper TradeWinds, said: "While the cargoes themselves are not sanctioned, the ships are. And the number of ships is very wide and can be added to ad hoc. The sanctions have effectively paralyzed shipping to and from Russia. The legal uncertainties, risks to crews, insurance costs, and the potential financial and reputational risks means that very few ships and cargoes are moving."

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