"KOUVOLA, Finland -- This peaceful Nordic city's courthouse is a front line in the fight against Moscow. Here, prosecutors are putting teeth in Western sanctions on Russia, one case at a time.
It is a painstaking effort that starts with customs officers along Finland's 800-mile border with Russia, 50 miles east. The agents, who normally screen imports, last year swung to scrutinizing vehicles and shipments leaving the country after the U.S., European Union and other allies outlawed providing Russia with hundreds of products, from microchips to designer sports equipment.
Finnish Customs has launched more than 250 cases since the operation started, over exports including luxury cars, sonar gear, heat pumps and cash. Some violators are fined on the spot, but more-complex cases prompt court cases.
"It's a huge difference compared to other years," said Sami Rakshit, director of enforcement at Finnish Customs. In past years, sanctions mainly covered distant countries such as Iran and Syria and generated a tiny handful of lawsuits.
Now private individuals in cars can violate Russian export controls, like a man caught in July trying to export two golf clubs and a smartwatch whose value exceeded the permitted limit.
"We've had to turn our minds in a totally different direction," Mr. Rakshit said.
Supplying Ukraine with weapons underpins Western efforts to help it defeat Russia. Also crucial to the campaign is denying Russia’s forces funding, technology and, ultimately, domestic support. The plan is to constrict Russia's economy while also severing its access to industrial and consumer goods.
International sanctions imposed soon after Russia's large-scale operation on Feb. 24 quickly froze roughly $600 billion in state financial assets held in banks overseas and cut Russia off from the global financial system. Overnight, Russians from billionaires to ordinary citizens found their credit cards and bank accounts disconnected from most other countries. International business transactions across a swath of industries became impossible.
More gradually, a second wave of restrictions took hold, choking off Russia's access to foreign products that might be associated with the military, help develop the economy or be enjoyed by people involved in sustaining Russian President Vladimir Putin. The EU has adopted nine sanctions packages, increasing financial pressure and expanding the list of forbidden exports.
Finnish prosecutor Mirva Hilander, who has handled several sanctions-violation cases, says she sees "quite a lot of efforts to export all kinds of products to Russia."
In 2021 Russia was the EU's fifth-largest trading partner, with roughly 257 billion euros, or about $280 billion, in goods traded, representing almost 6% of the bloc's global trade in goods, according to the EU. Almost two-thirds of that was imports from Russia, mainly fuel and other raw materials. Finland was among the EU's top traders with Russia.
U.S. trade with Russia in 2021 totaled $36 billion, or about 13% of the EU's volume. The U.S. has led policing of financial sanctions since it has the greatest leverage over banking flows. Europe has taken the lead on impeding exports.
Mr. Rakshit cites the challenge of assessing exports to Kazakhstan, Georgia or other countries transiting Russia, which isn't forbidden. Finnish customs officials suspect many shippers falsify the final destination and their products never leave Russia.
Figuring out what is permitted can be tough for authorities and companies. If Mr. Rakshit's customs inspectors stumble on something of questionable legality, they consult the Finnish Foreign Ministry. If the ministry suspects a violation, customs initiates a criminal investigation, he said.
The ministry's legal service and export-control unit, which fields questions on sanctions and assesses compliance, have been deluged. The ballooning workload required the office to recruit more staff last year, ranging from lawyers to engineers, said Pia Sarivaara, leader of the legal service's sanctions team.
Mr. Rakshit said he suspects that most violations among individuals are less about supporting Russia's effort than people simply trying to maintain a standard of living that sanctions have put out of reach." [1]
1. World News: On Europe's Eastern Border, Guards Combat Illicit Trade
Michaels, Daniel. Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 30 Jan 2023: A.8.
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