The tenuous global political climate is causing all sorts of unforeseen complications, so it’s no surprise that it is impacting business and trade. Based on military action in eastern Ukraine and Russia, the European Union has placed new sanctions on the shipment of dual-use parts to this region.
In a recent blog post, application platform and services provider UNICOM (News - Alert) discussed the sanctions and explained their ramifications for the business world at large. In a nutshell, dual use parts are products that are typically used for civilian purposes, but may also have military applications. The EU has banned the export of all military equipment to Russia in light of military action in the region, and that sanction includes dual use parts.
UNICOM pointed out that breach of those sanctions is considered a criminal offense, and the company is trying to create awareness for all those who trade in the global marketplace. They added that they believe their own customers will be unaffected with respect to UNICOM’s products and services, but that it’s best to err on the side of caution.
Specifically, the export of dual use items to military end users in Russia is prohibited, along with spare parts for military use items or military end users. The statement from the EU adds that the sanction should not affect those dual-use goods and technology designated for non-military use or non-military end users.
UNICOM also pointed out that the sanctions will likely create delays in the shipment of all dual use parts since companies will now be separating their shipments of dual use and non-dual use items to ascertain compliance.
“For example, Dutch Customs has announced that all requests for export document approval for shipments containing dual parts will be held,” wrote UNICOM on the blog post. “These requests will be forwarded to the Central Service of Import and Export in the Netherlands, and that organization will determine on a case-by-case basis whether or not to issue export documents. As you can imagine, this will result in delays.”
UNICOM added that their Global Logistics Services team is versed in global trade regulations, and that the team is available to help the company’s clients with questions and to ensure they meet compliance with the sanctions.
The dual-use sanctions were part of larger EU actions that include an embargo on the import and export of arms and related items to and from Russia and financial sanctions that restrict Russian access to EU capital markets. Exports of certain energy-related equipment and technology to Russia are now also subject to prior authorization and approval from EU Member States.