The “Russia’s Sanctions Evasion Report 2024 – 2025” examines how Russia has adapted its strategies to evade international sanctions through various partnerships, particularly with nations in Central Asia, the Caucasus, Turkey, and China. The report outlines key findings, recommendations, and a detailed analysis of sanctions’ impact, responses, and methods employed by Russia to circumvent restrictions. It also discusses the roles of different countries in facilitating or obstructing these evasion tactics.
THE KEY FINDINGS REGARDING RUSSIA’S SANCTIONS EVASION STRATEGIES INCLUDE
Russia’s Sanctions Evasion Strategies (2024–2025)
Russia continues to circumvent international sanctions through partnerships with Central Asia, China, Turkey, the Caucasus, and other third-party nations.
Despite international efforts to close vulnerabilities, Russian-linked businesses exploit alternative trade routes to access critical resources.
Key Transit Hubs Facilitating Sanctions Evasion
China acts as a central player, using Central Asia as a conduit for dual-use goods, spare parts, and military resources. China facilitates cross-border payments and trade in sensitive goods, supporting Russia’s sanction evasion.
Turkey, despite its NATO membership, remains a critical conduit for Russian goods and financial transactions.
Kazakhstan, Kyrgyzstan, Uzbekistan, Georgia, and Armenia play pivotal roles in rerouting sanctioned goods to Russia. Caucasus Nations used to obscure the origin of imports, ensuring continued access to restricted goods.
Russia leverages its extensive resource base, including oil, gas, steel, aluminum, and rare-earth minerals, but still relies on external sources such as Kazakhstan for additional materials.
Role of Russian Oligarchs and Financial Networks
Russian-affiliated oligarchs in Central Asia facilitate Russia’s access to markets and resources.
Russian entities engage with financial institutions in Central Asia to bypass sanctions.
Russia’s Military Supply Chain and Procurement Tactics
Russia’s defense industry is sustained by covert procurement networks and repurposed civilian industries.
Russia seeks high-tech components, including semiconductors and drone technology, from China, Iran, and North Korea despite Western restrictions.
Western-made microchips and dual-use technologies continue to reach Russia through intermediary nations, fueling military operations.
Expansion of International Mechanisms for Sanctions Evasion
The Eurasian Economic Union remains a key facilitator of sanctions evasion. o Russia successfully expands BRICS membership in 2024, potentially using it
as an alternative trade bloc to bypass restrictions.
Russian energy leverage influenced European decision-making, particularly in Germany, Hungary, and Slovakia.
Cryptocurrency as a Tool for Sanctions Evasion
Russia increasingly utilizes cryptocurrency to obscure transactions and bypass banking restrictions (Iran, North Korea, China, Kazakhstan, and Kyrgyzstan)