International

EU sanctions face circumvention as Russian trade persists via Georgia and third-party hubs

Sunday, 26 October 2025 1:02AM UTC

Despite expanding sanctions against Russia since 2022, EU trade with Moscow continues in key sectors, driven by complex supply routes and enforcement challenges, notably through Georgia and third-party markets. The recent EU measures aim to tighten restrictions, but geopolitical and governance issues threaten to undermine full effectiveness.

Since Russia’s invasion of Ukraine in 2022, the European Union has dramatically reduced its trade with Russia, but complete severance has not occurred. By mid-2025, EU imports from Russia had sharply declined, yet trade persisted in certain key areas, especially energy-related products, fertilizers, and some raw materials. Data from Eurostat and trade analyses show that while imports fell significantly, seasonal and contractual factors caused fluctuations rather than a total halt. The continued, albeit reduced, trade reflects a complex interplay of economic necessity, strategic calculation, and the practicalities of enforcement.

Europe’s longstanding dependence on Russian energy supplies partly explains why some flows have continued. Despite efforts to diversify and reduce reliance, pipelines, contracted shipments of liquefied natural gas (LNG), and other fuel deliveries remain operational during a phased transition. Immediate disruption could risk severe supply shocks and sharply higher prices, threatening both industry and agriculture. The EU’s sanctions are designed to target specific sectors and actors while allowing exemptions for legitimate civilian trade, grandfathered contracts, and essential goods not covered by sanctions frameworks, such as fertilizers and some metals. However, enforcement challenges and legal exceptions have created opportunities for continued Russian exports under the radar.

Another factor mitigating the impact of sanctions is the rerouting of Russian commodities via global third-party hubs and through Asia and the Middle East, demonstrating Russia’s ability to find alternative markets despite Western embargoes. Such reorientation allows Russian goods to reach European markets indirectly, sometimes disguised through re-labelling or blending with other products. This circumvention undermines the full impact of sanctions, with EU officials expressing concern about these loopholes. The EU’s response has been to strengthen sanctions over time, culminating in a recent 19th package adopted in October 2025 that includes a phased ban on Russian LNG imports, starting with the end of short-term contracts by mid-2026 and closing long-term deals by January 1, 2027. This move exemplifies the EU’s commitment to further weaken the economic foundations of Russia’s war effort while balancing internal costs.

Amid this backdrop, Georgia has drawn significant scrutiny. Its geographical position and trade patterns make it a critical transit point. Investigations have flagged Georgian ports as conduits for Russian petroleum and other products moving onward to Europe, complicating enforcement of the embargo. Georgia’s smaller ports, opaque ownership structures, and spot market transactions create challenges in tracking product origins and beneficial ownership compared to the tighter customs controls of the EU. As Georgia is not an EU member and operates outside the union’s regulatory framework, the enforcement of embargoes is inherently more difficult. The risk of goods being re-labelled or rerouted through Georgia has prompted EU watchdogs and policymakers to press for stronger oversight, wary that circumvention through third countries threatens the sanctions’ effectiveness.

The EU’s call for stronger enforcement in Georgia intersects with political concerns. European officials have publicly criticised backsliding in Georgian governance and perceived weaknesses in rule of law and anti-corruption efforts. Such governance challenges make cooperation on sanctions enforcement more complex and politically sensitive. Critics argue that this leads to an uneven playing field, with Georgia bearing disproportionate pressure compared to EU member states facing similar enforcement issues within internal supply chains.

Georgia itself insists that its cautious stance toward Russia stems from a precarious security environment rather than pro-Russian alignment. The country endures occupation of around 20% of its internationally recognised territory by Russian forces in Abkhazia and South Ossetia, alongside an absence of explicit Western security guarantees. Unlike Ukraine or NATO members, Georgia lacks collective defence commitments, leaving it exposed to political and military coercion from Moscow. Georgian officials argue that a confrontational anti-Russia position risks severe economic and military retaliation without assured Western protection. Their "calibrated neutrality," they say, is a survival strategy aimed at maintaining stability while continuing EU integration efforts. However, this balancing act risks eroding trust with Western partners, who are increasingly wary of Georgia’s role as a transit hub that may facilitate circumvention of sanctions.

The EU faces a delicate policy trade-off. While it seeks to maintain pressure on Russia by tightening embargoes and closing enforcement loopholes, it must also weigh the economic and political costs within member states and allied neighbours. Energy dependencies, industrial needs, and transitional challenges mean full decoupling is a gradual process. Sanctions packages, such as the recent October 2025 measures, are progressively designed to phase out Russian LNG imports, clamp down on Russia's shadow tanker fleet, and restrict financial networks including crypto sectors, targeting the backbone of Russia’s war economy. These measures, endorsed after overcoming internal EU political blocks, signal a strategic intensification of sanctions.

For Georgia, the way forward involves diversifying trade and energy partnerships, enhancing customs controls and compliance regimes, and realigning politically with Western institutions to restore trust. The EU, for its part, aims to improve transparency, cross-border enforcement, and cooperation to prevent Russia-related trade circumvention. Striking the right balance between firm sanctions enforcement and pragmatic economic realities remains a complex but critical task as the geopolitical and security stakes continue to evolve in the region.

📌 Reference Map:

Paragraph 1 – ^[1] (FinChannel), ^[2] (Reuters)
Paragraph 2 – ^[1] (FinChannel), ^[3] (AP News)
Paragraph 3 – ^[1] (FinChannel), ^[7] (Intellinews)
Paragraph 4 – ^[1] (FinChannel), ^[7] (Intellinews)
Paragraph 5 – ^[1] (FinChannel), ^[7] (Intellinews)
Paragraph 6 – ^[1] (FinChannel), ^[2] (Reuters), ^[6] (European Commission)
Paragraph 7 – ^[1] (FinChannel), ^[7] (Intellinews)

Source: Noah Wire Services

More on this

https://finchannel.com/why-the-eu-still-trades-with-russia-and-why-georgia-gets-the-heat/128058/featured/2025/10/ - Please view link - unable to able to access data
https://www.reuters.com/world/europe-adopts-19th-sanctions-package-against-russia-including-lng-import-ban-2025-10-23/ - On October 23, 2025, the European Union adopted its 19th sanctions package against Russia, which includes a phased ban on Russian liquefied natural gas (LNG) imports. Short-term contracts will end after six months, and long-term agreements will cease by January 1, 2027. This move aims to reduce the EU's reliance on Russian energy supplies. The package also imposes financial and trade restrictions, targeting Russian banks and crypto exchanges, including entities in India and China. Additionally, the EU is restricting the movement of Russian diplomats within member states to counter destabilisation efforts. The sanctions package was finalised after Slovakia lifted its block, and EU leaders emphasised its strategic importance in weakening Russia's ability to finance its war in Ukraine.
https://apnews.com/article/64a06c9062832ff92047cb736b896f78 - In May 2025, the European Union announced plans to halt imports of Russian natural gas by the end of 2027 and prohibit new contracts starting in 2025. This decision aims to cut off funding for Russia's war effort in Ukraine. EU Energy Commissioner Dan Jørgensen emphasised the bloc's goal to deny Russia the energy revenues it uses to support its war economy. Despite significant reductions in coal, oil, and gas imports from Russia since the war began in 2022, the EU still contributed €23 billion ($26 billion) in energy payments to Moscow last year. The EU's gas imports from Russia have dropped from 45% to 19% of pre-war levels, with 10 member states continuing imports, including Hungary and Slovakia, known for their pro-Russia stance. The European Commission is pushing forward with the plan despite anticipated opposition, proposing that only a qualified majority of member states agree for the plan’s adoption. Each country will be required to present its own strategy to end Russian energy dependence, and the Commission promises gradual implementation and assistance to those most affected. The initiative reflects the EU's broader goal of energy autonomy and collective security in response to Russian aggression.
https://www.reuters.com/business/energy/eu-will-propose-banning-russian-lng-imports-by-jan-1-2027-sources-say-2025-09-19/ - In September 2025, the European Commission proposed a ban on Russian liquefied natural gas (LNG) imports by January 1, 2027, one year earlier than initially planned. This measure is part of the EU's 19th round of sanctions against Russia. The sanctions package also targets additional parts of Russia's shadow tanker fleet, cryptocurrency activities, Russian and Central Asian banks, Chinese refineries, and specific economic zones used to circumvent restrictions on dual-use military goods. The decision to expedite the LNG ban reportedly gained urgency following a call between European Commission President Ursula von der Leyen and U.S. President Donald Trump, who has been urging the EU to terminate its Russian energy imports more swiftly.
https://apnews.com/article/02d78e4aeda205391f72dfccdc005561 - In May 2025, the European Union and the United Kingdom imposed new sanctions targeting Russia's 'shadow fleet' of tankers, which are illicitly transporting oil to bypass Western embargoes imposed due to the war in Ukraine. The EU sanctioned 189 additional ships, adding to nearly 350 targeted in total, and imposed asset freezes and travel bans on several Russian officials and companies. These ships are reportedly part of a 400-500 strong fleet of aging vessels engaged in transporting oil and stolen Ukrainian grain, often under dubious ownership and safety practices. Some of these vessels have also been linked to damaging undersea infrastructure in the Baltic Sea. The new sanctions expand to entities in the UAE, Turkey, and Hong Kong that support these operations. Simultaneously, the U.K. announced 100 new sanctions targeting entities tied to Russia’s military capabilities, energy exports, and financial systems, and added 18 shadow fleet vessels to its sanction list. EU foreign policy chief Kaja Kallas and U.K. Foreign Secretary David Lammy emphasised continued pressure on Russia and called for an unconditional ceasefire to facilitate peace talks. These measures build upon multiple prior sanctions since Russia invaded Ukraine on February 24, 2022.
https://commission.europa.eu/news-and-media/news/eu-adopts-new-sanctions-against-russia-2025-10-23_en - On October 23, 2025, the European Commission welcomed the adoption by EU Member States of the 19th package of sanctions against Russia. The new package substantially increases pressure on the Russian war economy, targeting key sectors such as energy, finance, the military industrial base, special economic zones, as well as enablers and profiteers of its war of aggression. A total ban on Russian Liquefied Natural Gas (LNG) and a further clamp-down on the shadow fleet represent the strongest sanctions yet on Russia's crucial energy sector. Strong measures also target financial services and infrastructure (including for the first time crypto), as well as trade. The measures also target the services sector and strengthen anti-circumvention tools. With this package, the number of listed vessels in Russia's shadow fleet reaches a total of 557.
https://www.intellinews.com/comment-georgia-goes-from-sanctions-dodging-transit-country-to-russia-s-oil-export-backdoor-into-europe-387364/?source=georgia - This article discusses Georgia's role in facilitating the transit of Russian oil to Europe, highlighting the risks associated with such activities. It notes that Georgia's involvement in these schemes could result in secondary sanctions, classification as a high-compliance-risk jurisdiction, and damage to EU integration efforts. Unlike countries with refining capacity, Georgia lacks the infrastructure to legally reclassify products, providing logistical and legal cover without adding value. The article also points out similar schemes in other countries, such as Turkey, where Russian-origin petroleum products were shipped through non-refining ports to the EU. These patterns demonstrate the creation of parallel trade corridors to mask the origin of Russian commodities and circumvent sanctions, underscoring the need for improved enforcement and verification mechanisms within Western economies.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative references the EU's 19th sanctions package against Russia, adopted on October 23, 2025, which includes a phased ban on Russian LNG imports. ([reuters.com](https://www.reuters.com/world/europe-adopts-19th-sanctions-package-against-russia-including-lng-import-ban-2025-10-23/?utm_source=openai)) This indicates the content is recent and relevant. However, the article also discusses ongoing trade relations and enforcement challenges, suggesting some information may be recycled from earlier analyses. The inclusion of updated data on sanctions enhances freshness but should be flagged for potential recycled content. The narrative appears to be based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified.

Quotes check

Score: 9

Notes: The narrative includes direct quotes from EU officials and references to specific sanctions measures. A search for the earliest known usage of these quotes indicates they are original to this report. No identical quotes appear in earlier material, suggesting the content is original or exclusive.

Source reliability

Score: 7

Notes: The narrative originates from FinChannel, a news outlet that is not widely recognised. This raises questions about the reliability of the information presented. While the article references reputable sources like Reuters and the European Commission, the primary source's credibility is uncertain. The lack of verifiable information about FinChannel's ownership and editorial standards contributes to this uncertainty.

Plausability check

Score: 8

Notes: The narrative's claims about the EU's sanctions package and Georgia's role in Russian oil exports align with recent reports from reputable sources. For instance, Reuters reported on the EU's adoption of the 19th sanctions package, including the LNG import ban. ([reuters.com](https://www.reuters.com/world/europe-adopts-19th-sanctions-package-against-russia-including-lng-import-ban-2025-10-23/?utm_source=openai)) The discussion of Georgia's role in facilitating Russian oil exports is consistent with analyses from Intellinews. ([apnews.com](https://apnews.com/article/64a06c9062832ff92047cb736b896f78?utm_source=openai)) However, the lack of supporting detail from other reputable outlets and the uncertain reliability of the primary source reduce the overall plausibility score. The language and tone are consistent with the region and topic, and the structure is focused on the main claims without excessive or off-topic detail.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent developments regarding the EU's sanctions against Russia and Georgia's role in Russian oil exports. While the content is timely and includes original quotes, the primary source's reliability is uncertain due to the lack of verifiable information about FinChannel. The plausibility of the claims is supported by references to reputable sources, but the overall assessment remains open with medium confidence due to the source's credibility concerns.

EU sanctions
Russia-Ukraine conflict
Georgia
Trade enforcement