**EU and US Sanction Cooperation with Russia Breaks Down**
The European Union and the United States have been working together to prevent Russian sanctions evasion since 2014. However, a recent leaked report from Germany’s Foreign Ministry has revealed that cooperation between the two has broken down.
According to the report, EU Special Representative for Sanctions David O’Sullivan told a closed-door meeting of the EU Foreign Affairs Council on May 20th that there is “no joint outreach” with the US anymore. He also noted that G7 cooperation on sanctions evasion had “lost momentum”. This means that the EU and other countries are no longer working together with the US to stop Russia from circumventing economic sanctions.
**US President Trump’s Role in the Breakdown**
The leaked report suggests that US President Donald Trump is pushing for normalization with Russia, which would mean an end to the global sanctions regime. Some experts believe that Trump would rather resume doing business with Russia today than tomorrow. This has raised concerns about the effectiveness of the sanctions regime and the ability of countries to enforce them.
Trump’s push for normalization with Russia is seen as a major obstacle to the EU’s efforts to sanction Russia further. Despite this, the EU has announced plans to prepare a new 18th package of sanctions in response to renewed Russian attacks on Ukrainian cities.
**China Plays a Key Role in Sanctions Evasion**
The leaked report also highlights China’s role in sanctions evasion. O’Sullivan told the EU Foreign Affairs Council that around 80% of cases are tied to China, which denies involvement. Ukraine’s Foreign Intelligence Chief Oleh Ivashchenko has accused Chinese firms of supplying essential materials to 20 Russian arms factories.
**EU Cracks Down on Third Countries and Russia’s Shadow Fleet**
Despite the breakdown in US-EU coordination, the EU has reportedly achieved some success in blocking war-related exports via third countries. Export channels through Armenia, Serbia, Uzbekistan, and India have seen disruptions. However, Kazakhstan, Türkiye, and the UAE remain problematic transit points.
The EU has also made progress in efforts against Russia’s “shadow fleet” – tankers and cargo ships used to bypass sanctions. Multiple nations have stripped Russian-linked ships of their flags following EU pressure. However, O’Sullivan urged further measures against ports used frequently by these vessels, including those in Türkiye, India, and Malaysia.
**Next EU Sanctions Package to Hit Energy and Financial Sectors**
The next EU sanctions package is expected to hit Russia’s energy and financial sectors. However, Russia’s ally Hungary opposes these measures and has shown “no willingness to compromise”. This could make it difficult for the EU to enforce the new sanctions.
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