In light of the ongoing conflict in Ukraine, David O’Sullivan, the EU Sanctions Envoy, has shed light on the European Union’s position regarding Uzbekistan’s involvement in his recent interview with Gazeta.uz. O’Sullivan reiterated the EU’s respect for Uzbekistan’s sovereignty and assured that the nation would not be entangled in the conflict nor subjected to sanctions. Despite this, concerns have been voiced over the possibility of Uzbekistan serving as a conduit for bypassing sanctions imposed on Russia.
Russia faces difficulties in acquiring the technologies it needs. We are not asking Uzbekistan to comply with our sanctions. We do not want to harm Uzbekistan's traditional trade with Russia. We must avoid using Uzbekistan as a platform for circumventing sanctions.
O’Sullivan’s trip to Uzbekistan marks a continuation of discussions initiated in April, focusing on the ramifications of EU and International Coalition sanctions on Russia. Accompanied by counterparts from the US and UK, O’Sullivan engaged with Uzbek officials from key economic sectors, aiming to address sanction-related challenges and prevent the inadvertent support of sanctioned trade with Russia.
The EU envoy commended Uzbekistan’s endeavours to diversify its economy and integrate more deeply into the global economic landscape. He encouraged bolstering trade relations with various regions, including Europe, the Americas, and Asia, and supported Uzbekistan’s aspirations to join the World Trade Organization (WTO). O’Sullivan also acknowledged the advantages Uzbekistan gains from the Generalized Scheme of Preferences Plus (GSP+), which facilitates tariff-free exports to the EU.
While discussing the impending 12th sanctions package, O’Sullivan maintained discretion, citing the ongoing finalization process. He noted that previously, two Uzbek companies were subjected to limited sanctions to deter European entities from engaging with them due to concerns over potential sanction evasion.
David O’Sullivan also spoke candidly about the full-scale invasion of Ukraine by Russia, describing it as a profound shock to Europe and a flagrant violation of international agreements. This has prompted the European Union to implement an unprecedented range of sanctions aimed at three key objectives:
- to cut off the Russian military-industrial complex from essential technology,
- to deprive the Russian government of war-funding revenue
- to impose significant costs on Russia’s industrial infrastructure
O’Sullivan reported considerable success in meeting these objectives, noting that Russia is struggling to acquire the technology it requires, increasingly resorting to outdated equipment or seeking assistance from countries like Iran or North Korea. This has led to a tactical advantage for Ukraine on the battlefield.
The sanctions have also impacted the Russian economy, which is now running a deficit, forcing the government to divert funds from social welfare, education, and research to military spending. O’Sullivan likened the situation to a “slow puncture of the tire,” indicating that while Russia can maintain its war economy in the short term, it is not sustainable in the medium term.
It is very important to understand that the full-scale invasion of Ukraine which Russia has undertaken since February of last year came as a deep shock to Europe. This is the first time we have seen major power conflict in Europe after the Second World War and it is in flagrant breach not only of the UN Charter but indeed of the Helsinki Agreements. That is why we have adopted this unprecedented range of sanctions against Russia as the consequence of their unprovoked aggression.
The surge in intermediary trade: keeping eye on Uzbekistan
O’Sullivan addressed the issue of goods produced in the EU being re-exported through Uzbekistan, which saw a 126% increase in intermediary trade. He emphasized the need to monitor and prevent such activities to ensure the effectiveness of the sanctions regime. The dynamics of this trade are under scrutiny as the EU seeks to close loopholes and prevent circumvention of the sanctions.
Ambassador Adriaen pointed out that the EU during the ceremony on December 5th, in collaboration with global partners, has formulated sanctions aimed at stripping Russia of the essential capabilities and technologies to engage in the conflict with Ukraine.
Let me be very clear with you. These sanctions are not intended to target Uzbekistan or your enterprises. Nonetheless, to expedite the restoration of peace, we require your assistance to prevent the evasion of these sanctions. What does this entail practically? We urge you to exercise vigilance to ensure that European products on the sanctions list are not redirected to Russia. Last week, in conjunction with the EU’s Sanctions Envoy, David O’Sullivan, we engaged in comprehensive dialogues with the Uzbek authorities. We are gratified by their assurances that Uzbekistan will not be utilized as a conduit for sidestepping sanctions.
O’Sullivan conveyed a clear message to Uzbek authorities: the EU values the cooperative relationship with Uzbekistan. He emphasized the significance of ensuring that sanctions do not impede the bilateral partnership and called on Uzbekistan to uphold its pledge to prevent the nation from becoming a haven for sanction evasion or illicit trade with Russia. Vigilant trade monitoring and adherence to international commitments were underscored as crucial measures to mitigate any adverse effects stemming from the sanctions regime.
Earlier, Daryo wrote that on November 2, the U.S. Commerce Department targeted 13 entities, including one from Uzbekistan, for aiding Russia’s military actions in Ukraine by adding them to the Entity List. This action restricts their access to U.S.-related items, aiming to diminish support for Russia’s war efforts.
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