"US Pressures Allies Including Korea and Japan to Comply with Sanctions on Russia... Concerns Over Recovery of Exports to Russia"

"Exports to Russia from Korea, Japan, etc. Recover 30% Compared to Immediately After the War"
Russian Assets Frozen Since the Outbreak Are Gradually Being Unfrozen

[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Foreign media reports have emerged that the U.S. government is urging countries to comply with sanctions against Russia, citing a loosening of sanctions due to increased exports to Russia by allied countries and the release of frozen assets following the outbreak of the Ukraine war.

It is also reported that Asian allies such as South Korea and Japan have seen their exports to Russia recover compared to the initial phase of sanctions right after the war began. This move is interpreted as a measure to prevent weakening solidarity among allies regarding sanctions against Russia amid growing expectations for a prolonged war and possible peace negotiations.

On the 21st (local time), The Wall Street Journal (WSJ), citing senior U.S. and Western officials, exclusively reported that "the U.S. government is monitoring sanctions evasion occurring among European and Asian allies and is pressuring allies to strengthen trade controls," adding that "some allies have started increasing exports to Russia compared to the early days of sanctions after the war broke out."

According to WSJ, until the second quarter, exports to Russia by major countries worldwide plummeted by more than 50% due to strengthened sanctions. However, from the third quarter, a recovery in exports to Russia has been observed. In particular, WSJ pointed out that although South Korea and Japan’s exports to Russia have not yet reached pre-sanction levels, they have recovered by nearly 30% compared to the time when sanctions began immediately after the war started.

WSJ reported, "U.S. Treasury Secretary Janet Yellen warned allies about sanctions evasion issues at the recent G20 summit held in Bali, Indonesia," adding, "She also sent warning messages to Arab countries as Russian money laundering is reportedly active in the Arab region."

Earlier, Elizabeth Rosenberg, U.S. Treasury Department Deputy Assistant Secretary for Terrorist Financing and Financial Crimes, attended the Arab Bankers Association meeting and warned Middle Eastern countries about Russian money laundering. Deputy Assistant Secretary Rosenberg emphasized, "There have been public reports that Russian money laundering is actively taking place in the Arab world," and stated, "We all must prevent, investigate, and eliminate it."

WSJ also pointed out that in some countries, frozen Russian assets have been released. WSJ reported, "Swiss financial authorities announced in April that about $8 billion worth of Russian assets were frozen, but in May, approximately $3 billion of those assets were unfrozen," adding, "Experts estimate that the total hidden assets of Russian leadership in Switzerland are much higher than this."

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