The European Union (EU) has recently taken additional measures to impose sanctions on Russia, accusing two companies based in Uzbekistan of supporting Moscow’s military operations in Ukraine. Alfa Beta Creative and GFK Logistics Asia were included in a list of 87 enterprises that are alleged to facilitate the Russian military-industrial complex. These entities were previously blacklisted by the US Department of Commerce in April for their involvement in acquiring US-origin items to support Russia’s defense industrial base.
Being on the sanctions list means that these companies will face stricter limitations in their ability to acquire dual-use goods and technologies. The latest round of EU punitive measures primarily aims to prevent third countries and companies from bypassing existing sanctions. The transit of dual-use goods and technology to Russia is now prohibited in order to prevent their use in the country’s defense and security sector. Additionally, the EU has the authority to impose restrictions on the sale of sensitive dual-use goods and technology to nations that may later resell them to Russia.
The relationship between Russia and Uzbekistan in terms of trade has experienced significant growth in the past year. In 2022, the mutual trade volume between the two countries surged by 23% to $9.3 billion. Notably, the volume of Uzbek-labeled products and services exported to Russia saw a noteworthy increase of 150% to $3 billion over the same period.
These new sanctions by the EU reflect ongoing efforts to put pressure on Russia due to its military actions in Ukraine. By targeting companies based in Uzbekistan, the EU aims to address concerns of economic cooperation with Russia through third-party entities. The inclusion of these Uzbek entities in both EU and US blacklists indicates a coordinated effort to curb support for the Russian military-industrial complex.
This decision by the EU raises questions about the potential impact on Uzbekistan’s economy, given its growing trade relationship with Russia. It remains to be seen how these sanctions will affect bilateral trade and whether Uzbekistan will seek alternative markets or trade partners to compensate for any disruptions caused by the restrictions.
It is worth noting that RT, a Russian news outlet, reported on these sanctions, highlighting the broader economic and financial implications of such measures. This news is part of RT’s comprehensive coverage of business and economy-related stories.
In conclusion, the EU’s latest sanctions against Russia have resulted in two Uzbek companies being accused of supporting Moscow’s military efforts in Ukraine. This move is part of the EU’s efforts to prevent third-party entities from bypassing existing sanctions on Russia. As trade between Russia and Uzbekistan continues to grow, the impact of these sanctions on Uzbekistan’s economy remains to be seen.