Media: US and EU cease cooperation in fight against Russia's sanctions circumvention

German media outlets have reported that the United States and the European Union have ended their joint efforts to combat Russia's circumvention of international sanctions.

As reported by German media outlets Süddeutsche Zeitung, NDR and WDR, the conclusion that cooperation has collapsed is contained in an internal report by the Federal Foreign Office on the meeting of the EU Foreign Affairs Council held on 20 May in Brussels. The confidential document shows that EU sanctions policy chief David O'Sullivan lamented the complete breakdown of transatlantic coordination on sanctions evasion.

As a result, "there is no more joint information and advocacy work". G7 cooperation has also "lost momentum" in this regard.

How the Europeans and Americans intend to agree on another package of sanctions in such circumstances remains a mystery. Moreover, some experts believe that Trump would like to do business with Russia again sooner or later.

Sergey Lagodinsky, a MEP from the Greens, warns of the security implications of reduced transatlantic coordination. "The problem is that the US has been the de facto driving force behind the sanctions regime," he said in an interview with the Süddeutsche Zeitung. If the Trump administration seeks to normalise relations with Russia, "it will mean the end of the global sanctions regime," he said.

The only positive aspect of the meeting in Brussels is that the trade restrictions against Moscow seem to be starting to have an effect. The report shows that both O'Sullivan and Daniel Markic, director of the EU's Intelligence Coordination Office, stressed that the sanctions are having a significant impact on the Russian economy.

The EU has also had some success regarding war-related goods being exported through third countries, including Armenia, Serbia, Uzbekistan and India. However, shipments through Kazakhstan, the United Arab Emirates and Türkiye continue to pose challenges. China and Hong Kong remain the main transit points for circumventing sanctions.

The confidential document indicates that O'Sullivan complained at a meeting in Brussels that the People's Republic of China was "responsible for approximately 80 per cent of the evasion" but continued to deny it. However, he added that EU companies also profit from illegal business with Russia, which significantly weakens the European Commission's position in negotiations with third countries.

At the meeting, O'Sullivan was able to report on the first successes in the fight against Russia's shadow fleet. Several states in which these tankers and cargo ships, which actually belong to Russia, are registered have withdrawn their flags at the EU's initiative. Nevertheless, the sanctions commissioner called on EU member states to take "decisive action against the entire shadow fleet". Among other things, according to an internal report, he suggested considering measures against ports frequented by these vessels, in countries such as Türkiye, India and Malaysia.

The next EU sanctions, according to the Foreign Ministry document, will most likely be directed against Russia's energy and banking sectors. Only Hungary rejects these measures, once again demonstrating its "unwillingness to compromise". It is also doubtful whether the US government will cooperate, given the experience of the past few weeks.

On 25 May, US President Donald Trump, condemning Russia's latest attack on Ukraine, said he was considering additional sanctions against Russia.

Finnish Prime Minister Petteri Orpo believes that the international community should put pressure on Russian leader Vladimir Putin to start negotiating a ceasefire in Ukraine.