The cooperation between the United States and the European Union on countering Russia’s evasion of international sanctions has effectively collapsed. This conclusion is outlined in a confidential report by Germany’s Federal Foreign Office, which summarizes the outcomes of the EU Foreign Affairs Council meeting held on May 20 in Brussels, reports the Baltimore Chronicle, citing Süddeutsche Zeitung.
According to the internal document, EU sanctions envoy David O’Sullivan reported a complete breakdown in transatlantic coordination on addressing sanction circumvention. As a result, joint information and communication efforts between the U.S. and the EU have ceased. Additionally, coordination within the G7 on this matter has reportedly “lost momentum.”
The current state of disarray raises questions about how both sides will be able to agree on future sanction packages. Some experts believe that former U.S. President Donald Trump, if re-elected, would likely pursue renewed business ties with Russia.
Sergey Lagodinsky, a Member of the European Parliament from the Green Party, warned of the security implications of reduced transatlantic cooperation. He emphasized that the U.S. had been the driving force behind the sanctions regime. Should a new U.S. administration push for normalization with Moscow, it could signal the collapse of the global sanctions framework.
Despite this, the Brussels meeting highlighted some positive developments. According to both O’Sullivan and Daniel Markić, head of the EU’s Intelligence Coordination Office, sanctions are having a tangible impact on Russia’s economy. The EU has seen progress in limiting the flow of war-related goods through third countries such as Armenia, Serbia, Uzbekistan, and India. However, trade routes through Kazakhstan, the UAE, and Turkey continue to pose significant challenges. China and Hong Kong remain key transit hubs for sanction evasion.
O’Sullivan stated during the meeting that approximately 80% of sanctions breaches are linked to the People’s Republic of China, despite Beijing’s continued denials. He also noted that some EU-based companies profit from illegal trade with Russia, weakening the European Commission’s position in negotiations with third countries.
Moreover, EU officials reported initial success in efforts to curb Russia’s “shadow fleet”—oil tankers and cargo vessels registered in third countries but owned by Russian entities. Several states have withdrawn their flags from such ships at the EU’s request. Nevertheless, O’Sullivan called on member states to adopt tougher measures, including restrictions on ports frequently visited by these vessels, such as those in Turkey, India, and Malaysia.
According to the Foreign Office report, the next round of EU sanctions will likely target Russia’s energy and banking sectors. However, Hungary has already voiced opposition, once again refusing to compromise. Doubts also remain over whether the U.S. will support further sanctions, given recent developments in transatlantic relations.
Earlier we wrote that Trump considers lifting Syria sanctions for Trump Tower and resource access.