In the second half of 2023, the US Treasury hit Iran with a new round of sanctions aimed at the country’s military drone program. Despite denying involvement, Iran has been accused of using its drones to support Russia’s invasion of Ukraine, and all those connected have seen sanctions enforced.
Fast-forward to December, in Finland. Customs officers exposed a multi-million dollar scheme that involved supplying drones to Russia. It seems that there’s a lot more to this tangled web than meets the eye.
After all, Russia has had almost a decade to find the wriggle room around military sanctions. But while the first sanctions came quickly after the 2014 invasion of Crimea, the most intense rounds arrived after February 2022, when Russia invaded Ukraine.
The sanctions are intended to deprive Russia’s military of both power and buying power. Despite its size and wealth, Russia cannot domestically produce the technology and equipment it needs to maintain its military complex.
Instead, it’s reliant on third-country suppliers, giving these sanctions the potential to set Russian technology back by decades. And we’ve already begun to see the effects, with the semiconductor shortage, in particular, leading to banks cannibalizing old credit cards and cars leaving the factory floor with missing components.
However, when third parties continue to circumvent the sanctions, providing Russia with the technology and equipment it needs to wage war on neighbouring Ukraine, government efforts enjoy limited effects.
Whether discussing the discovery of US-made tech in confiscated drones or the fact that Russia is still producing missiles, despite supposedly not having the components, it’s clear that Western and third-country enablers are sabotaging Russian sanctions.
The scary part? You might not even know you’re doing it.
If your business is involved in the production of components, engineering design, imports and exports, or any other industry with a link to military tech, it’s vital that you understand the rules, the risks, and the extent of the problem.
Because ignorance is no excuse, and if you get caught in the crosshairs of sanctions evasion, you will be held responsible.
At The Owl, we can help you make sure you know who you are dealing with, so you can navigate the risk and aim for complete transparency in your supply chain. Our dedicated team of geopolitical experts can help take the pressure off, assisting you as you carry out due diligence and maintain the highest moral and legal standards every step of the way.
If you’re concerned about any of this, don’t hesitate to get in touch and we’ll be glad to ease your mind.
🦉 Shoot us a hoot
