Trade flows with high-risk countries have decreased, but problematic product groups still exist

Trade flows with high-risk countries have decreased, but problematic product groups still exist

Ursula Riimaa, Deputy Director General of the Tax and Customs Board (ETCB) in the field of customs, explained that while trade with third countries has decreased significantly, imports and exports of certain goods have increased. “On one hand, this is due to legitimate trade – companies that fulfill their due diligence obligations have adapted to the changed geopolitical situation and have found new markets and supply chains. On the other hand, we also see increases in certain product categories that may indicate attempts to circumvent sanctions,” Riimaa said.

According to Riimaa, the ETCB’s primary objective since the start of the war has been to prevent sanctioned goods from reaching Russia. “Although most goods are subject to an export ban to Russia, the transit of many sanctioned goods through Russia is still permitted. Within the powers granted to us, we can intervene and, in cases of justified suspicion that the goods will end up in Russia, prevent their departure from Europe.” Riimaa emphasized.

Preventing the evasion of sanctions has become the most important focus in customs work. According to Riimaa, the Tax and Customs Board has implemented several targeted measures to achieve this goal. “We conduct thorough checks of goods and transport documents, assess risks across the entire supply and transport chain, and evaluate the logic of the chosen routes. Both the increasingly stringent sanctions and customs measures have already shown their impact in foreign trade statistics, but we see that the current sanctions regime could and should still be further strengthened,” Riimaa emphasized.