by Michel Klompmaker
At the moment, the Ukrainian capital Kiev is under siege and being bombed. The West is watching and Putin can carry out his long-devised plan without too much opposition. Let’s not pretend that this has been a big surprise. It quickly brings to mind 1938 when the ‘Anschluss’ through Austria with Germany became a fact. Putin has waited neatly with this invasion until after the Olympic Games in China so as not to embarrass his supporters there. One dictator learns the tricks of another dictator. China is now going to learn from the reaction of the West and can benefit from this, in the very important step for China, namely the ‘Anschluss’ of Taiwan to the People’s Republic of China that is on the program. Let’s not be naive and think that this is a utopia and that the intake can be prevented through consultation. Time for the West to wonder if we shouldn’t divide the world in two… a part that is undesirable and objectionable to the West and a part that is as little involved as possible with such dictatorships. This means that many western knots have to be counted… no more SWIFT, but also no more sponsors like Gazprom to admit to the Champions League. But banks are also embarrassed, because all those billions of money are stored somewhere. Meanwhile, the European Union has changed the sanctions regime.
On the 21st and 23rd of February, the EU sanctions regime was amended concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. Implementing regulations have been issued and you can consult them in the Official Journal of the EU. In these regulations and publication you can read that existing sanctions are supplemented and that new sanctions are also imposed.
The national supervisors emphasise that institutions are also prohibited from participating, knowingly or intentionally, in activities the object or effect of which is to circumvent the sanctions established. If you see possible signs of circumvention, you should also report this.
Why are sanctions imposed?
The United Nations (UN) and the EU impose international sanctions. The UN and EU do this against countries, organisations, companies and individuals. For example, in the event of a threat to international peace and security. They can also impose sanctions to defend human rights, respect for international law, democracy and the rule of law.
In the Netherlands, under the Sanctions Act 1977, European regulators are charged with supervising compliance with sanctions regulations with regard to financial transactions. Investment institutions and investment firms are subject to the supervision of the European regulators. Parties must prevent that they act in violation of sanction regulations. Acting in violation of sanction regulations is an economic offence and therefore punishable.
