Western officials to exert pressure on UAE over trade with Russia: WSJ

By Al Mayadeen English
Source: The Wall Street Journal
4 Sep 2023 22:34
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Western officials claim that appeals to halt the export of items that could allegedly be utilized in the conflict against Ukraine have gone mostly unheeded.

Vladimir Putin and Mohammed bin Zayed Al Nahyan toured the stands of the United Arab Emirates at the SPIEF 2023. (RIA Novosti)

Officials from the United States, United Kingdom, and the European Union are set to collectively urge the United Arab Emirates (UAE) to stop shipping goods that can be allegedly used by Russia in its conflict with Ukraine, The Wall Street Journal reported.

These officials, representing both Washington and European capitals, are reportedly visiting the UAE to prevent the flow of dual-use products, such as computer chips and electronic components, with civilian and military applications, to Russia.

While the UAE, like many other non-Group-of-Seven nations, has chosen not to participate in the sanctions imposed by the US, UK, and EU, it has made it clear that it does not wish to serve as a center for Western companies attempting to bypass sanctions through the transit of goods.

American and European authorities express growing unease over the rising flow of Western-manufactured products being allegedly directed to Russia via the UAE, the report stated. This comes as the US urges various countries, including Russia's neighboring nations like Armenia, to tighten control over trade with Moscow.

US, UK, and EU sanctions envoys have collectively and individually visited nations like Turkey and Kazakhstan to "urge authorities to block Western dual-use products from reaching the conflict zones," the report added.

Additional nations have assisted Russia in obtaining critical dual-use technology, as per the report. Following the military operation in Ukraine, trade between Russia and China surged, with Beijing exporting more than $300 million worth of semiconductors and integrated circuits to Russia, a significant increase from the previous year's $230 million, as reported by United Nations trade statistics.

The report added that the UAE, a longstanding Middle East ally of the United States, has publicly denounced the war in Ukraine on multiple occasions at the United Nations. Nevertheless, it has also made efforts to preserve its relations with Russia, aligning with a foreign policy strategy centered on extensive international engagement in a global landscape seen by its leaders as increasingly multipolar. In a recent development, the UAE announced its intention to join the BRICS group, consisting of emerging nations such as Brazil, Russia, India, China, and South Africa.

UAE President Mohamed bin Zayed has had meetings with Russian President Vladimir Putin, and he has maintained communication with US officials both before and after these visits. The UAE has strong connections with the United States, where its sovereign wealth funds have invested substantial sums, totaling tens of billions of dollars.

According to a UAE representative, the nation adheres to sanctions imposed by the United Nations and engages in extensive discussions with global partners, including the United States and the European Union, regarding the war in Ukraine and its potential impact on the worldwide economy.

The official also stated that the Gulf state is actively overseeing the export of dual-use items and remains dedicated to upholding the integrity of the global financial system.

More than 200 nationalities, including non-sanctioned Russians and Ukrainians, now reside in the country, according to the official.

In February, Russia's Industry and Trade Minister Denis Manturov reported that bilateral trade between Russia and the UAE grew by 68% year-on-year to reach $9 billion in 2022, as per a Russian state news agency TASS report.

According to trade data from Russia compiled by the Kiev School of Economics in Ukraine, the UAE exported computer components and modules worth $149 million to Russia in the first five months of this year, a significant increase from $1 million during the same period last year. Additionally, exports of communication equipment surged to $64 million from zero during the same timeframe last year, while exports of electrical and electronic equipment rose to $20 million from $1 million.

The report further noted that the status of these products in relation to Western sanctions remains unclear. Armenia, which allegedly played a pivotal role as a transshipment hub for US and European dual-use items to Russia last year, exported only approximately $1.2 million worth of computer components and modules to Russia in the initial four months of this year, according to United Nations trade data. A spokesperson from Armenia's Foreign Ministry mentioned that authorities are making extensive efforts to prevent the circumvention of Western sanctions on Russia and have implemented a policy in May to enforce strict controls on the sale of 38 groups of products.

The spokesperson emphasized that these products are not allowed to be re-exported from the Republic of Armenia to any nation. In November, the United States imposed sanctions on two Dubai-based companies for their alleged involvement in shipping Iranian drones. In March, the UAE announced the revocation of Russia's MTS Bank license following its inclusion in a new round of US sanctions.