Enforcing export controls learning from and using the financial system

Benjamin Hilgenstock, Elina Ribakova, Anna Vlasyuk and Guntram Wolff

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: Abstract Russian imports of battlefield goods subject to export controls have surged since mid‐2022 and reached levels close to those prior to Russia's full‐scale invasion of Ukraine. Russia thus continues to be able to acquire foreign components critical for its military industry. These imports largely occur via mainland China, Hong Kong, Turkey and the United Arab Emirates, while other countries including Armenia, Georgia, Kazakhstan and the Kyrgyz Republic have also seen massive increases in tech imports that likely end up in Russia. The enforcement of export controls faces multifaceted challenges centred around complex supply chains, lack of transparency and opaque financial structures, issues familiar from anti‐money laundering (AML) and countering financing of terrorism (CFT) frameworks. We propose using a similar framework in export control enforcement: First ,financial institutions need to play a role in monitoring trade in export‐controlled goods and blocking illicit transactions. Second ,non‐financial companies could learn from banks' efforts in the AML/CFT sphere to implement proper due‐diligence procedures and to ensure export controls compliance. Public‐sector investigations and appropriate fines are critical to increase the incentives for firms to act. Technology sanctions will remain part of the economic statecraft toolbox. The Russia case will test their effectiveness and credibility.

Date: 2024-11
New Economics Papers: this item is included in nep-cis, nep-int and nep-tra
References: View complete reference list from CitEc
Citations:

Published in: Global policy (2024)

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/3869 ... 2024GlobalPolicy.pdf Full text for the whole work, or for a work part (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/386935

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/386935

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().