Bloomberg reported, based on its sources, that "some countries in the European Union oppose imposing new sanctions against Russia that would affect other countries worldwide and question the effectiveness of such sanctions." The agency stated: "A group of member states seeks to dilute the proposals presented by the European Union aimed at taking stricter actions against the circumvention of the sanctions imposed on Russia through third countries."
It added: "The European Commission proposes to impose a ban on the re-export of essential goods to Russia or their use within Russia. It also proposes requiring companies to deposit a certain amount in a guarantee account, with at least half of it to be transferred to a trust fund for Ukraine if the company violates the sanctions. In this scenario, contracts with these companies would be terminated, and exporters would also be obligated to inform national authorities of any violations by companies from third countries."
However, diplomats from a number of key member states "have raised several concerns about the Commission's proposals, including doubts regarding their legality and whether such guarantees and conditions from importers are feasible. Countries also seek to narrow the scope of the potential clauses and the list of goods that the proposed measure would cover, and some member states are concerned that the contractual demands could place European companies in a disadvantageous competitive position."
Recent trade data shows that "exports from countries including Armenia, Azerbaijan, and Uzbekistan are higher than pre-crisis levels in Ukraine, indicating that they are re-exporting products from Western countries to Russia." Bloomberg pointed out that "more than 80% of Russia's foreign purchases of high-priority items now come from China and Hong Kong, and Moscow has managed to open new pathways for its trade worldwide."
