After the speech of the President of Ukraine Volodymyr Zelensky before the House of Representatives of the Netherlands calling for tougher anti-Russian sanctions on March 31, 2022, the Dutch parliamentarians raised a question with the country's government regarding the current situation with the implementation of sanctions measures. In response, Foreign Minister Wopke Hoekstra and Finance Minister Sigrid Kaag sent a letter to Parliament on 1 April 2022 with clarifications.
Current sanctions against Russia
The introduction and implementation of sanctions against the Russian Federation as an aggressor country is carried out by the Netherlands within the framework of the general sanctions policy of the European Union. For a complete list of applicable sanctions, please visit the website. Dutch Enterprise Development Agency (Rijksdienst voor Ondernemend Nederland, RVO).
The letter to Parliament from the representatives of the Cabinet of Ministers of the Netherlands speaks of great attention to the implementation and enforcement of the sanctions imposed against Russia in connection with the military aggression against Ukraine. Significant progress has been made since the adoption of the sanctions:
- frozen Russian assets in the amount of 516 million euros;
- blocked transactions in the amount of 154 million euros;
- 13 containers, as well as 000 declarations of cargo shipments going to Russia and Belarus, passed a special check at customs;
- there were suspicions of violations of 46 freight traffic, investigations are underway;
- 1 Russian aircraft cannot leave the Netherlands due to the closure of airspace for the Russian Federation;
- 5 yachts under construction will not be able to leave the Netherlands (at the same time, there are no yachts owned by Russian citizens from the sanctions list in the ports of the Netherlands);
- real estate owned by Russian individuals or organizations included in the sanctions list is frozen (sale, rent and mortgage are prohibited).
It is incorrect to compare these figures with the results achieved in other countries, since we are talking about different intensity of business and personal ties in each country, respectively, about different volumes of frozen assets, and so on. The government promises to send a letter to the House of Representatives next week with more information about such an international comparison.
National Focal Point for Sanctions Enforcement
Cabinet of Ministers of the Netherlands On April 4, 2022, the post of National Sanctions Enforcement Coordinator is introduced (Nationaal Coordinator Sanctienaleving en Handhaving, NCSH).
National Coordinator will lead a task force composed of representatives of relevant government services and executive bodies. The main tasks of this target group are:
- identification and application of sanctions against Russian individuals and legal entities included in the sanctions list (TOP-200);
- improving enforcement of sanctions in areas such as real estate, cultural heritage, business ownership and non-financial services;
- elimination of "bottlenecks" in the observance and application of sanctions, in particular - in the exchange of information between authorities;
- coordination between government agencies, companies and stakeholders in society.
Prospects for expanding sanctions pressure
The letter to the deputies of the House of Representatives of the Netherlands addresses a number of other issues related to sanctions against Russia. Among them:
- confiscation or expropriation of immovable property;
- supervision of trust offices;
- exchange of information of tax authorities;
- the presence of aircraft of Russian oligarchs in parts of the Kingdom.
The Ministry of Finance conducts a study of the trust sector in the Netherlands. As you know, in the Netherlands this sector is quite large. Trust offices provide services that help wealthy individuals or companies structure their cash flows. Among the clients, one can reasonably assume the presence of a considerable number of Russian residents.
It is planned to introduce a ban on the provision of trust services to persons and companies whose founders or ultimate beneficial owners are residents of Russia or Belarus. The Council of Ministers approved the relevant bill, which will be submitted to the State Council for urgent discussion. The bill will then go to the House of Representatives and the Senate.
As a result of the systematic expansion of sanctions, doing business with counterparties from the Russian Federation is becoming increasingly difficult. Moreover, the sanctions will be reflected in family and personal ties with Russian citizens. Everyone who is in one way or another connected with the country that started the war will feel the inconvenience and damage.
Publication Date: 06.04.2022
