EU mulls export curbs for countries trading with Russia – FT

Brussels may ban certain EU exports to countries that are believed to be re-exporting sanctioned goods to Russia, in a bid to enforce the existing sanctions against the country, the Financial Times reported on Friday, citing sources close to the discussions.

According to the report, a legal mechanism would allow Brussels to identify sanctioned products that end up in Russia through third parties, and countries that resell them.

The European Commission would then issue official warnings to these states. If those are not heeded, Brussels would then add the names of targeted products and destinations to export controls.

The measure may be included in the 11th package of Ukraine-related sanctions against Russia, sources claim.

Some member states, however, have expressed concern over how the measure may affect their trade relations with third countries, as well as how such measures comply with global trade rules, even if they are strictly targeted and temporary, sources say.

“It will lead to quite some discussion in the EU – over whether we are comfortable doing that. How do you avoid the unintended side effects of pushing certain countries in a different direction to where you want them to go? You have to be very careful on how you use carrots and sticks,” one of the sources told the news outlet.

The European Commission declined to comment on the report.

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