How to circumvent sanctions: new routes for the delivery of goods from the EU and the USA to Russia

The imposition of sanctions against Russia has led to significant changes in international trade. However, Russian business and its foreign partners have adapted to these conditions by developing complex schemes for the delivery of goods through third countries. One of these countries was Turkey, which played an important role as a transit hub and intermediary in settlements. Let's look at how this scheme works, and what methods are used to circumvent restrictions.

How does this happen?

In order to circumvent the sanctions restrictions that block the direct supply of goods from the EU and the United States to Russia, various transit routes and intermediaries are used. Turkey, due to its geographical location and relatively neutral stance on sanctions, has become a key country for such operations. The following are involved in this process logistics and financial intermediaries that ensure safe delivery and settlement of contracts between suppliers and Russian companies.

The process works as follows:

1. Supplier from the EU or the USAsells goods not directly to Russia, but through a third country, such as Turkey.
2. Turkish company buys goods from a supplier as an official importer.
3. After that, the product is issued as export to Russia through Turkey in compliance with local legislation.
4. Alternative financial schemes that do not depend on international sanctions restrictions, including SWIFT, are used for calculations.

Involvement of intermediaries for settlements

In order to circumvent financial restrictions, such as disconnecting Russian banks from the SWIFT system, intermediaries of financial companies in third countries that are not subject to sanctions are involved. These may be banks or companies registered in Turkey, the UAE or other countries that remain neutral against Western sanctions.

The settlement process through intermediaries may include the following steps:

1. Russian buyertransfers funds to the account of a Turkish company or financial intermediary.
2. Broker then transfers the money to the supplier from the EU or the USA.
3. Thus, financial transactions take place without direct interaction with Russian banks under sanctions, which avoids blocking payments.

Transit operations through Turkey

Turkey is an important link in the logistics chain for the delivery of sanctioned goods. Both sea and land routes are used in this process. The key stages of transit include:

1. Purchase of goodsin the EU or the USA with subsequent export to Turkey.
2. Turkish logistics companies organize the transportation of goods to Russia through the Caucasus or the Black Sea ports.
3. At the border, the goods can be repackaged or the HS code has been changed in order not to fall under restrictions from the EU and the USA.

This process requires careful coordination with the logistics and customs services of both countries, as well as working with local intermediaries who are familiar with the nuances of trade under sanctions.

Foreign trade deals involving Turkey

Turkish companies, thanks to flexible legislation and weak pressure from Western countries, have become important partners for Russian importers. Turkey does not impose strict restrictions on exports to Russia, which allows it to act as a buffer between Western countries and Russia. The main goods that pass through Turkey:

1. Technologies and equipment that came under export control.
2. Spare parts and accessories for industries in need of foreign materials.
3. Food products and consumer goods.

For Russian companies, the scheme through Turkey represents an opportunity to maintain business ties with European and American suppliers, minimizing the risks of sanctions.

Alternative payment methods, bypassing SWIFT

One of the key problems for Russian companies is the inability to use traditional international payment systems such as SWIFT. Alternative payment methods are used to bypass this system:

1. Cryptocurrencies. Some companies are turning to using cryptocurrencies for international payments. This allows transactions to be carried out anonymously and independently of banking systems.
2. National payment systems.Turkish and Russian banks can use their national payment systems for settlements. For example, the Russian Mir system and the Turkish Troy system can be used for transactions between countries.
3. Barter transactions. In some cases, settlements can take the form of an exchange of goods, which also helps to circumvent sanctions.

Such methods make it possible to maintain commercial activity between Russian and foreign companies, despite financial constraints.

Fulfillment of financial obligations under existing contracts

Many Russian companies face the problem of fulfilling old contracts signed before the sanctions were imposed. In order to make settlements under such contracts, companies resort to intermediary schemes through countries that are not involved in sanctions.

1. Using Turkish banks to transfer funds under old contracts signed with European and American suppliers.
2. Re-export of goods through Turkey, where the goods are formally sold to a Turkish company, which then exports them to Russia. This allows you to fulfill the terms of the agreement and avoid violating the sanctions regime.
3. Creation of subsidiaries in third countries through which settlements can be made under existing contracts using local financial instruments.

Thus, Russian companies can continue to do business with foreign partners, despite the sanctions.

Conclusion

Circumventing sanctions has become a complex process that requires flexibility and knowledge of international economic mechanisms. Turkey has been at the forefront of this process, providing both transit of goods and financial transactions. Alternative payment schemes without SWIFT, the use of intermediaries and complex logistics routes have allowed many Russian companies to maintain access to important foreign goods and services, despite the restrictions imposed.