Ever since the Russia has been sanctioned by Europe and the US over its invasion to Ukraine Russia’s allies such as China stood out for refusing to comply with these sanctions. Although Western sanctions have been heavily crippling on Russia, because Dollar liquidity is all that matters in the global economy, China has served as Russia’s backstop to build its alternative economy. Now, China is Russia’s biggest trading partner and its single and most important source of income.
China could flout international sanctions because its economic size and global market share gives it global buying power. President Donald Trump has challenged China over its oil purchases from Russia while Europe pretends to unsee China’s overt sanctions-busting.
There has been overwhelming political support for Russian sanctions in European politics, but not enough will to enforce these sanctions through. In order to achieve efficiency in its sanctions regime, Europe can start structuring its leverage and power with its international sanctions regime in a piecemeal and gradual approach starting from the most flagrant and weakest violators: such as the United Arab Emirates.
As a well-known international hub for money-laundering, the UAE had no qualms in violating sanctions against Russia. It even openly promotes its warm relationship with Russia on a yearly basis by projecting the Russian flag on Burj Khalifa during Russian Flag Day.ย The UAE has been allowed to flout sanctions against Russia and serve as a major-money hub for Russia. Bizarrely, the EU even removed the UAE from its list of high-risk jurisdictions after the FATF removed the UAE from its Grey List.
One can look at the exports and imports figures related to the UAE to understand how it has developed into an important trading hub for Russia, not to mention the rapidly increasing volume of financial trades between Russia and the UAE, and the large number of Russian businesses present there (up to 4,000). Exports from the UAE to Russia have increased from up to $1.45 billion in 2021 to $4.45 billion last year, but some other sources cite higher increases. Obviously these are mostly European products because the UAE doesn’t have a manufacturing-export industry. This also means that European products that are banned from being exported to Russia, are being exported to Russia via the UAE.
Somehow, legislators and policymakers have accepted this international financial aberration: this small Gulf state is being allowed to act and behave like an international criminal enterprise. The EU is even discussing a free trade deal with the UAE. The Sudanese are now appealing the EU to avoid this deal over the UAE’s involvement and backing of the Rapid Support Forces in Darfur, Sudan who have just committed ethnic cleansing in Al-Fashir. The UAE is the biggest backer, financier and arms supplier of the RSF. Basically, the EU can’t hide the fact that it is negotiating a trade deal with a state that is involved in genocide. European arms, machinery and supplies will also potentially contribute to this genocide in Darfur if the EU increases trade and cooperation with the UAE. How will the EU react to the UAE will effect its international sanctions regime.
The UAE remains a conduit for sanctions-busting in many potential and ongoing sanctions cases. Had the EU sanctioned Israel over its war crimes in Gaza, the UAE would have benefitted greatly as a conduit for trade with Israel. The UAE will potentially serve as a conduit for any international sanctions as it has done in the past and continues to do so today. The impunity it has been awarded over its international role as a money-laundering hub, has enabled it to aspire to criminal imperialism and is now literally arming gangs of terrorists in Africa to pursue its financial and economic interests.
As more EU capital flows into the UAE, the more the UAE will feel empowered to act like an international criminal state. European companies and individuals have invested up to โฌ186 billion in the UAE and the UAE is the biggest recipient of European capital in the Gulf region. However, the total amount of capital flows into UAE is potentially higher due to no publication of records. Striking a trade deal with the UAE will empower its impunity and criminality even further: both as an international money-laundering hub and as well as an imperialist state currently waging genocidal wars in Africa.
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