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Europe faces scrutiny over sanctions exposure to Russia
UK and EU officials have expanded sanctions on Russia, but regulators are being urged to increase oversight of European firms that still profit or remain economically exposed.
OilPrice reports that European sanctions on Russia, led in recent years by the EU and UK, are facing questions about whether the campaign is working as intended. Maria Demertzis, a professor at the European University Institute in Italy, argues that European institutions can continue operating profitable subsidiaries in Russia with limited scrutiny, potentially undermining the pressure on Moscow.
The report points to new UK sanctions announced by the new Foreign Secretary, Ed Miliband, including measures targeting six Russian banks, six shadow fleet tankers, and four Russian companies importing materials believed to support Russia’s war in Ukraine, such as tantalum and niobium. It also notes that the EU sanctioned five individuals linked to Russia’s military-industrial complex in response to recent Russian attacks on Ukraine’s economic infrastructure.
According to OilPrice, the UK government has now sanctioned more than 3,400 individuals, entities, and ships under its Russia sanctions regime since 2022, with 500 designations made in 2024 alone. The story also cites regulatory pressure from the European Central Bank urging Eurozone lenders to reduce Russian exposure or exit the country.
The article concludes that while Russia has made it harder for European institutions to leave, there are regulatory pressures and exit roadmaps available, and the UK and EU are urged to broaden sanctions enforcement by increasing scrutiny of businesses still exposed to Russia.